Senate File 364 H-1122 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that may qualify under this subsection in the manner 24 and form prescribed by the department. 25 d. This subsection is repealed January 1, 2024, and does not 26 apply to tax years beginning on or after that date. 27 Sec.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 law to the contrary, subtract to the extent included 31 compensation or assistance received by the taxpayer authorized 32 pursuant to any of the following federal programs: 33 (1) Pandemic unemployment assistance, Coronavirus Aid, 34 Relief, and Economic Security Act, Pub. L. No. 116-136, §2102. 35 -1- SF364.993 (1) 89 jm/jh 1/ 4 #1.

(2) Federal pandemic unemployment compensation, Coronavirus 1 Aid, Relief, and Economic Security Act, Pub. L. No. 116-36, 2 §2104(b)(1)(B). 3 (3) Pandemic emergency unemployment compensation, 4 Coronavirus Aid, Relief, and Economic Security Act, Pub. L. No. 5 116-136, §2107. 6 (4) Pandemic unemployment compensation related to 7 subparagraphs (1) and (3) approved by the memorandum 8 authorizing the other needs assistance program for major 9 disaster declarations related to the coronavirus disease 2019, 10 issued by the president of the United States on August 8, 2020. 11 (5) Extension of pandemic unemployment compensation under 12 subchapter 1 of the Consolidated Appropriations Act, 2021, Pub. 13 L. No. 116-260. 14 b. This subsection is repealed January 1, 2026. 15 Sec. ___. Section 422.35, subsection 30, Code 2021, is 16 amended to read as follows: 17 30. a. Subtract, to the extent included, the amount of 18 any financial assistance qualifying COVID-19 grant provided 19 to an eligible small issued to a business by the economic 20 development authority under the Iowa small business relief 21 grant program created during calendar year 2020 to provide 22 financial assistance to eligible small businesses economically 23 impacted by the COVID-19 pandemic , the Iowa finance authority, 24 or the department of agriculture and land stewardship . 25 b. For purposes of this subsection, “qualifying COVID-19 26 grant” includes any grant identified by the department by rule 27 that was issued under a grant program administered by the 28 economic development authority, Iowa finance authority, or 29 the department of agriculture and land stewardship to provide 30 financial assistance to businesses economically impacted by the 31 COVID-19 pandemic. 32 c. The economic development authority, Iowa finance 33 authority, or the department of agriculture and land 34 stewardship shall notify the department of any COVID-19 grant 35 -2- SF364.993 (1) 89 jm/jh 2/ 4

program that may qualify under this subsection in the manner 1 and form prescribed by the department. 2 d. This subsection is repealed January 1, 2024, and does not 3 apply to tax years beginning on or after that date. > 4 2. Page 1, line 4, by striking < §278(a) > and inserting 5 < §278 > 6 3. Page 1, after line 7 by inserting: 7 < Sec. ___. TAXPAYER RELIEF FUND —— TRANSFERS. 8 1. There is transferred from the taxpayer relief fund 9 created in section 8.57E to the general fund of the state for 10 the following fiscal years, the following amounts: 11 FY 2020-2021: 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 90,300,000 13 FY 2021-2022: 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,800,000 15 2. Notwithstanding subsection 1, for the fiscal year 16 beginning July 1, 2021, and ending June 30, 2022, if the 17 balance of the taxpayer relief fund created in section 8.57E is 18 less than $12,800,000, the amount transferred under subsection 19 1 for the fiscal year shall be the balance of the taxpayer 20 relief fund. 21 3. The transfers in this section are made for the purpose of 22 providing moneys to the general fund of the state for the tax 23 relief provided in this Act. > 24 4. Page 1, after line 9 by inserting: 25 < Sec. ___. RETROACTIVE APPLICABILITY. The following apply 26 retroactively to March 23, 2020, for tax years ending on or 27 after that date: 28 1. The section of this Act amending section 422.7, 29 subsection 62. 30 2. The section of this Act amending section 422.35. 31 Sec. ___. RETROACTIVE APPLICABILITY. The following applies 32 retroactively to January 1, 2020, for the tax year beginning on 33 or after that date but before January 1, 2021: 34 The section of this Act enacting section 422.7, subsection 35 -3- SF364.993 (1) 89 jm/jh 3/ 4 #2. #3. #4.

63. > 1 5. Title page, by striking lines 1 through 3 and inserting 2 < An Act relating to pandemic relief by excluding certain 3 COVID-19 related grants from the individual and corporate 4 income taxes, allowing certain deductions relating to the 5 paycheck protection program loan forgiveness, excluding 6 certain pandemic unemployment compensation from the individual 7 income tax, making transfers from the taxpayer relief fund, 8 and including effective date and retroactive applicability 9 provisions. > 10 6. By renumbering as necessary. 11 ______________________________ LOHSE of Polk -4- SF364.993 (1) 89 jm/jh 4/ 4 #5. #6.