Senate File 290 - 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.  Subtract, to the extent included,
4the first ten thousand two hundred dollars of state or
5federal unemployment compensation benefits including any
6pandemic-related unemployment compensation benefits received
7by the taxpayer for a tax year beginning on or after January 1,
82020, but before January 1, 2021.
   9b.  This subsection is repealed January 1, 2026.
10   Sec. 2.  EFFECTIVE DATE.  This Act, being deemed of immediate
11importance, takes effect upon enactment.
12   Sec. 3.  RETROACTIVE APPLICABILITY.  This Act applies
13retroactively to January 1, 2020, for tax years beginning on or
14after that date, but before January 1, 2021.
15EXPLANATION
16The inclusion of this explanation does not constitute agreement with
17the explanation’s substance by the members of the general assembly.
   18This bill relates to the exclusion of certain unemployment
19compensation from the individual income tax.
   20Under the bill, the first $10,200 of state or federal
21unemployment compensation, including pandemic-related
22unemployment compensation, shall be excluded from the
23calculation of a taxpayer’s Iowa net income for purposes of the
24state individual income tax.
   25The bill takes effect upon enactment and applies
26retroactively to January 1, 2020, for tax years beginning on or
27after that date but before January 1, 2021.
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