SF 214 (LSB 1862XS (3) 89)

SENATE FILE 214

BY  BOLKCOM, BOULTON, JOCHUM, BISIGNANO, GIDDENS, RAGAN, HOGG, WAHLS, QUIRMBACH, LYKAM, MATHIS, TRONE GARRIOTT, CELSI, T. TAYLOR, KINNEY, J. SMITH, DOTZLER, and PETERSEN

A BILL FOR

An Act relating to the exclusion of certain unemployment compensation from the individual income tax, and including effective date and retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 422.7, Code 2021, is amended by adding the following new subsection:
   NEW SUBSECTION.  63.  a.  Notwithstanding any other provision of law to the contrary, for any tax year beginning on or after January 1, 2020, but before January 1, 2022, subtract to the extent included compensation or assistance received by the taxpayer authorized pursuant to any of the following federal programs:
   (1)  Pandemic unemployment assistance, Coronavirus Aid, Relief, and Economic Security Act, Pub. L. No. 116-136, §2102.
   (2)  Pandemic emergency unemployment compensation, Coronavirus Aid, Relief, and Economic Security Act, Pub. L. No. 116-136, §2107.
   (3)  Pandemic unemployment compensation related to subparagraphs (1) and (2) approved by the memorandum authorizing the other needs assistance program for major disaster declarations related to the coronavirus disease 2019, issued by the president of the United States on August 8, 2020.
   (4)  Extension of pandemic unemployment compensation under subchapter 1 of the Consolidated Appropriations Act, 2021, Pub. L. No. 116–260.
   b.  This subsection is repealed January 1, 2027.
    Sec. 2.  EFFECTIVE DATE.  This Act, being deemed of immediate importance, takes effect upon enactment.
    Sec. 3.  RETROACTIVE APPLICABILITY.  This Act applies retroactively to January 1, 2020, for tax years beginning on or after that date but before January 1, 2022.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to the exclusion of certain unemployment compensation from the individual income tax.
   Under the bill, a taxpayer who has received compensation authorized pursuant to certain federal programs shall not include in the taxpayer’s Iowa net income any of the following: pandemic unemployment assistance; pandemic emergency unemployment compensation; pandemic unemployment compensation received through the memorandum issued by the president of the United States on August 8, 2020; and the extension of pandemic unemployment compensation.
   The bill takes effect upon enactment and applies retroactively to January 1, 2020, for tax years beginning on or after that date but before January 1, 2022.