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Senate File 214 - IntroducedA Bill ForAn Act 1relating to the exclusion of certain unemployment
2compensation from the individual income tax, and including
3effective date and retroactive applicability provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 422.7, Code 2021, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 63. a. Notwithstanding any other provision
4of law to the contrary, for any tax year beginning on or after
5January 1, 2020, but before January 1, 2022, subtract to the
6extent included compensation or assistance received by the
7taxpayer authorized pursuant to any of the following federal
8programs:
9(1) Pandemic unemployment assistance, Coronavirus Aid,
10Relief, and Economic Security Act, Pub.L. No.116-136, §2102.
11(2) Pandemic emergency unemployment compensation,
12Coronavirus Aid, Relief, and Economic Security Act, Pub.L. No.
13116-136, §2107.
14(3) Pandemic unemployment compensation related to
15subparagraphs (1) and (2) approved by the memorandum
16authorizing the other needs assistance program for major
17disaster declarations related to the coronavirus disease 2019,
18issued by the president of the United States on August 8, 2020.
19(4) Extension of pandemic unemployment compensation under
20subchapter 1 of the Consolidated Appropriations Act, 2021, Pub.
21L. No.116–260.
22b. This subsection is repealed January 1, 2027.
23 Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate
24importance, takes effect upon enactment.
25 Sec. 3. RETROACTIVE APPLICABILITY. This Act applies
26retroactively to January 1, 2020, for tax years beginning on or
27after that date but before January 1, 2022.
28EXPLANATION
29The inclusion of this explanation does not constitute agreement with
30the explanation’s substance by the members of the general assembly.
31This bill relates to the exclusion of certain unemployment
32compensation from the individual income tax.
33Under the bill, a taxpayer who has received compensation
34authorized pursuant to certain federal programs shall not
35include in the taxpayer’s Iowa net income any of the following:
-1-1pandemic unemployment assistance; pandemic emergency
2unemployment compensation; pandemic unemployment compensation
3received through the memorandum issued by the president of the
4United States on August 8, 2020; and the extension of pandemic
5unemployment compensation.
6The bill takes effect upon enactment and applies
7retroactively to January 1, 2020, for tax years beginning on or
8after that date but before January 1, 2022.
-2-jm/jh
2compensation from the individual income tax, and including
3effective date and retroactive applicability provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 422.7, Code 2021, is amended by adding
2the following new subsection:
3 NEW SUBSECTION. 63. a. Notwithstanding any other provision
4of law to the contrary, for any tax year beginning on or after
5January 1, 2020, but before January 1, 2022, subtract to the
6extent included compensation or assistance received by the
7taxpayer authorized pursuant to any of the following federal
8programs:
9(1) Pandemic unemployment assistance, Coronavirus Aid,
10Relief, and Economic Security Act, Pub.L. No.116-136, §2102.
11(2) Pandemic emergency unemployment compensation,
12Coronavirus Aid, Relief, and Economic Security Act, Pub.L. No.
13116-136, §2107.
14(3) Pandemic unemployment compensation related to
15subparagraphs (1) and (2) approved by the memorandum
16authorizing the other needs assistance program for major
17disaster declarations related to the coronavirus disease 2019,
18issued by the president of the United States on August 8, 2020.
19(4) Extension of pandemic unemployment compensation under
20subchapter 1 of the Consolidated Appropriations Act, 2021, Pub.
21L. No.116–260.
22b. This subsection is repealed January 1, 2027.
23 Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate
24importance, takes effect upon enactment.
25 Sec. 3. RETROACTIVE APPLICABILITY. This Act applies
26retroactively to January 1, 2020, for tax years beginning on or
27after that date but before January 1, 2022.
28EXPLANATION
29The inclusion of this explanation does not constitute agreement with
30the explanation’s substance by the members of the general assembly.
31This bill relates to the exclusion of certain unemployment
32compensation from the individual income tax.
33Under the bill, a taxpayer who has received compensation
34authorized pursuant to certain federal programs shall not
35include in the taxpayer’s Iowa net income any of the following:
-1-1pandemic unemployment assistance; pandemic emergency
2unemployment compensation; pandemic unemployment compensation
3received through the memorandum issued by the president of the
4United States on August 8, 2020; and the extension of pandemic
5unemployment compensation.
6The bill takes effect upon enactment and applies
7retroactively to January 1, 2020, for tax years beginning on or
8after that date but before January 1, 2022.
-2-jm/jh