SF 290 (LSB 2483XS (2) 89)

SENATE FILE 290

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

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.  Subtract, to the extent included, the first ten thousand two hundred dollars of state or federal unemployment compensation benefits including any pandemic-related unemployment compensation benefits received by the taxpayer for a tax year beginning on or after January 1, 2020, but before January 1, 2021.
   b.  This subsection is repealed January 1, 2026.
    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, 2021.
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, the first $10,200 of state or federal unemployment compensation, including pandemic-related unemployment compensation, shall be excluded from the calculation of a taxpayer’s Iowa net income for purposes of the state individual income tax.
   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, 2021.