Senate
File
196
-
Introduced
SENATE
FILE
196
BY
ZAUN
A
BILL
FOR
An
Act
relating
to
state
deductibility
of
federal
paycheck
1
protection
program
loan
forgiveness.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
1873XS
(4)
89
jm/jh
S.F.
196
Section
1.
FEDERAL
PAYCHECK
PROTECTION
1
PROGRAM.
Notwithstanding
any
other
provision
of
the
law
2
to
the
contrary,
for
any
tax
year
ending
after
March
27,
3
2020,
Division
N,
Tit.
II,
Subtitle
B,
§276
of
the
federal
4
Consolidated
Appropriations
Act,
2021,
Pub.
L.
No.
116-260,
5
applies
in
computing
net
income
for
state
tax
purposes
under
6
section
422.7
or
422.35.
7
EXPLANATION
8
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
9
the
explanation’s
substance
by
the
members
of
the
general
assembly.
10
This
bill
relates
to
the
federal
paycheck
protection
11
program.
Under
current
law,
for
the
tax
year
2020
and
later,
12
Iowa
law
fully
conforms
with
the
federal
treatment
of
forgiven
13
paycheck
protection
program
loans
and
excludes
such
amounts
14
from
net
income
and
allows
certain
deductions
for
business
15
expenses
paid
using
those
loans.
For
fiscal-year
filers
who
16
received
paycheck
protection
program
loans
during
the
2019
tax
17
year,
current
law
excludes
such
amounts
from
net
income,
but
18
does
not
allow
certain
deductions
for
business
expenses
paid
19
using
those
loans.
The
bill
fully
conforms
with
federal
law
20
for
those
fiscal-year
filers
who
previously
were
excluded
from
21
such
conformity
and
allows
such
filers
to
take
business
expense
22
deductions
using
federal
paycheck
protection
program
loan
23
proceeds
that
were
forgiven.
24
-1-
LSB
1873XS
(4)
89
jm/jh
1/
1