Senate File 364 H-1115 Amend Senate File 364, as passed by the Senate, as follows: 1 1. Page 1, before line 1 by inserting: 2 < Section 1. Section 422.7, subsection 62, Code 2021, is 3 amended to read as follows: 4 62. a. Subtract, to the extent included, the amount of 5 any financial assistance qualifying COVID-19 grant provided to 6 an eligible small issued to an individual or business by the 7 economic development authority under the Iowa small business 8 relief grant program created during calendar year 2020 to 9 provide financial assistance to eligible small businesses 10 economically impacted by the COVID-19 pandemic , the Iowa 11 finance authority, or the department of agriculture and land 12 stewardship . 13 b. For purposes of this subsection, “qualifying COVID-19 14 grant” includes any grant identified by the department by rule 15 that was issued under a grant program administered by the 16 economic development authority, Iowa finance authority, or 17 the department of agriculture and land stewardship to provide 18 financial assistance to individuals and businesses economically 19 impacted by the COVID-19 pandemic. 20 c. The economic development authority, Iowa finance 21 authority, or the department of agriculture and land 22 stewardship shall notify the department of any COVID-19 grant 23 program that may qualify under this subsection in the manner 24 and form prescribed by the department. 25 d. This subsection is repealed January 1, 2024, and does not 26 apply to tax years beginning on or after that date. 27 Sec. ___. Section 422.7, Code 2021, is amended by adding the 28 following new subsection: 29 NEW SUBSECTION . 63. a. Notwithstanding any other provision 30 of the law to the contrary, subtract to the extent included the 31 amount of federal pandemic unemployment compensation received 32 pursuant to the federal Coronavirus Aid, Relief, and Economic 33 Security Act, Pub. L. No. 116-36, §2104(b)(1)(B). 34 b. This subsection is repealed January 1, 2026. 35 -1- SF364.806 (1) 89 jm/jh 1/ 3 #1.

Sec. ___. Section 422.35, subsection 30, Code 2021, is 1 amended to read as follows: 2 30. a. Subtract, to the extent included, the amount of 3 any financial assistance qualifying COVID-19 grant provided 4 to an eligible small issued to a business by the economic 5 development authority under the Iowa small business relief 6 grant program created during calendar year 2020 to provide 7 financial assistance to eligible small businesses economically 8 impacted by the COVID-19 pandemic , the Iowa finance authority, 9 or the department of agriculture and land stewardship . 10 b. For purposes of this subsection, “qualifying COVID-19 11 grant” includes any grant identified by the department by rule 12 that was issued under a grant program administered by the 13 economic development authority, Iowa finance authority, or 14 the department of agriculture and land stewardship to provide 15 financial assistance to businesses economically impacted by the 16 COVID-19 pandemic. 17 c. The economic development authority, Iowa finance 18 authority, or the department of agriculture and land 19 stewardship shall notify the department of any COVID-19 grant 20 program that may qualify under this subsection in the manner 21 and form prescribed by the department. 22 d. This subsection is repealed January 1, 2024, and does not 23 apply to tax years beginning on or after that date. > 24 2. Page 1, line 4, by striking < §278(a) > and inserting 25 < §278 > 26 3. Page 1, after line 9 by inserting: 27 < Sec. ___. RETROACTIVE APPLICABILITY. The following apply 28 retroactively to March 23, 2020, for tax years ending on or 29 after that date: 30 1. The section of this Act amending section 422.7, 31 subsection 62. 32 2. The section of this Act amending section 422.35. 33 Sec. ___. RETROACTIVE APPLICABILITY. The following applies 34 retroactively to January 1, 2020, for the tax year beginning on 35 -2- SF364.806 (1) 89 jm/jh 2/ 3 #2. #3.

or after that date but before January 1, 2021: 1 The section of this Act enacting section 422.7, subsection 2 63. > 3 4. Title page, by striking lines 1 through 3 and inserting 4 < An Act relating to pandemic relief by excluding certain 5 COVID-19 related grants from the individual and corporate 6 income taxes, allowing certain deductions relating to the 7 paycheck protection program loan forgiveness, excluding certain 8 federal pandemic unemployment compensation from the individual 9 income tax, and including effective date and retroactive 10 applicability provisions. > 11 5. By renumbering as necessary. 12 ______________________________ COMMITTEE ON WAYS AND MEANS HEIN of Jones, Chairperson -3- SF364.806 (1) 89 jm/jh 3/ 3 #4. #5.