Bill Text: IA HF512 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act excluding from Iowa net income federal recovery rebates, certain paycheck protection program loan forgiveness, and pandemic-related unemployment compensation, and including effective date and retroactive applicability provisions.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2021-02-15 - Introduced, referred to Ways and Means. H.J. 390. [HF512 Detail]
Download: Iowa-2021-HF512-Introduced.html
House
File
512
-
Introduced
HOUSE
FILE
512
BY
JACOBY
A
BILL
FOR
An
Act
excluding
from
Iowa
net
income
federal
recovery
rebates,
1
certain
paycheck
protection
program
loan
forgiveness,
and
2
pandemic-related
unemployment
compensation,
and
including
3
effective
date
and
retroactive
applicability
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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512
DIVISION
I
1
FEDERAL
RECOVERY
REBATES
2
Section
1.
IOWA
INCOME
TAX
EXCLUSION
FOR
SECOND
ROUND
3
OF
FEDERAL
RECOVERY
REBATES.
In
determining
the
amount
of
4
deduction
for
federal
income
tax
under
section
422.9
for
tax
5
years
beginning
in
the
2020
calendar
year,
the
amount
of
the
6
deduction
shall
not
be
adjusted
by
the
amount
received
by
the
7
taxpayer
during
the
tax
year
of
the
income
tax
rebate
provided
8
pursuant
to
the
federal
Consolidated
Appropriations
Act,
2021,
9
Pub.
L.
No.
116-260,
§272,
and
the
amount
of
such
income
tax
10
rebate
shall
not
be
subject
to
taxation
under
chapter
422,
11
subchapter
II.
12
Sec.
2.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
13
deemed
of
immediate
importance,
takes
effect
upon
enactment.
14
DIVISION
II
15
PAYCHECK
PROTECTION
PROGRAM
(PPP)
16
Sec.
3.
Section
422.7,
Code
2021,
is
amended
by
adding
the
17
following
new
subsection:
18
NEW
SUBSECTION
.
63.
a.
Subtract,
to
the
extent
included,
19
the
amount
of
any
federal
paycheck
protection
program
second
20
draw
loan
forgiveness
pursuant
to
Pub.
L.
No.
116-260,
§311,
21
for
tax
years
beginning
on
or
after
January
1,
2021,
but
before
22
January
1,
2022.
23
b.
This
subsection
is
repealed
on
January
1,
2027.
24
Sec.
4.
Section
422.35,
Code
2021,
is
amended
by
adding
the
25
following
new
subsection:
26
NEW
SUBSECTION
.
31.
a.
Subtract,
to
the
extent
included,
27
the
amount
of
any
federal
paycheck
protection
program
second
28
draw
loan
forgiveness
pursuant
to
Pub.
L.
No.
116-260,
§311,
29
for
tax
years
beginning
on
or
after
January
1,
2021,
but
before
30
January
1,
2022.
31
b.
This
subsection
is
repealed
on
January
1,
2027.
32
Sec.
5.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
33
deemed
of
immediate
importance,
takes
effect
upon
enactment.
34
Sec.
6.
RETROACTIVE
APPLICABILITY.
This
division
of
this
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512
Act
applies
retroactively
to
January
1,
2021,
for
tax
years
1
beginning
on
or
after
that
date
but
before
tax
years
beginning
2
on
or
after
January
1,
2022.
3
DIVISION
III
4
UNEMPLOYMENT
COMPENSATION
5
Sec.
7.
Section
422.7,
Code
2021,
is
amended
by
adding
the
6
following
new
subsection:
7
NEW
SUBSECTION
.
64.
a.
Notwithstanding
any
other
provision
8
of
law
to
the
contrary,
for
any
tax
year
beginning
on
or
after
9
January
1,
2020,
but
before
January
1,
2022,
subtract
to
the
10
extent
included
compensation
or
assistance
received
by
the
11
taxpayer
authorized
pursuant
to
any
of
the
following
federal
12
programs:
13
(1)
Pandemic
unemployment
assistance,
Coronavirus
Aid,
14
Relief,
and
Economic
Security
Act,
Pub.
L.
No.
116-136,
§2102.
15
(2)
Pandemic
emergency
unemployment
compensation,
16
Coronavirus
Aid,
Relief,
and
Economic
Security
Act,
Pub.
L.
No.
17
116-136,
§2107.
18
(3)
Pandemic
unemployment
compensation
related
to
19
subparagraphs
(1)
and
(2)
approved
by
the
memorandum
20
authorizing
the
other
needs
assistance
program
for
major
21
disaster
declarations
related
to
the
coronavirus
disease
2019,
22
issued
by
the
president
of
the
United
States
on
August
8,
2020.
23
(4)
Extension
of
pandemic
unemployment
compensation
under
24
subchapter
1
of
the
Consolidated
Appropriations
Act,
2021,
Pub.
25
L.
No.
116-260.
26
b.
This
subsection
is
repealed
January
1,
2027.
27
Sec.
8.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
28
deemed
of
immediate
importance,
takes
effect
upon
enactment.
29
Sec.
9.
RETROACTIVE
APPLICABILITY.
This
division
of
this
30
Act
applies
retroactively
to
January
1,
2020,
for
tax
years
31
beginning
on
or
after
that
date
but
before
January
1,
2022.
32
EXPLANATION
33
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
34
the
explanation’s
substance
by
the
members
of
the
general
assembly.
35
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512
This
bill
excludes
from
Iowa
net
income
federal
recovery
1
rebates,
certain
paycheck
protection
program
loan
forgiveness,
2
and
pandemic-related
unemployment
compensation.
The
bill
is
3
divided
into
divisions.
4
DIVISION
I
——
FEDERAL
RECOVERY
REBATES.
The
bill
relates
to
5
the
state
taxation
of
the
federal
recovery
rebates
(stimulus
6
checks).
7
In
determining
the
amount
of
deduction
for
federal
income
8
tax
for
tax
years
beginning
in
the
2020
calendar
year,
the
9
amount
of
the
deduction
for
the
tax
year
shall
not
be
adjusted
10
by
the
second
round
of
stimulus
checks
received
during
the
tax
11
year
of
the
income
tax
rebate
provided
pursuant
to
the
federal
12
Consolidated
Appropriations
Act,
2021,
and
the
amount
of
such
13
income
tax
rebate
shall
not
be
subject
to
state
taxation.
14
Current
law
excludes
the
first
recovery
rebate
in
2020
Iowa
15
Acts,
chapter
1118,
section
114.
16
The
division
takes
effect
upon
enactment.
17
DIVISION
II
——
PAYCHECK
PROTECTION
PROGRAM
(PPP).
The
bill
18
excludes
from
the
calculation
of
Iowa
income
tax
the
federal
19
paycheck
protection
program
second
draw
loan
proceeds
from
the
20
federal
Consolidated
Appropriations
Act,
2021,
Pub.
L.
No.
21
116-260,
that
are
forgiven
and
excluded
from
federal
gross
22
income.
Current
law
excludes
the
first
round
of
paycheck
23
protection
program
loan
forgiveness
in
2018
Iowa
Acts,
chapter
24
1118,
section
109.
25
The
division
takes
effect
upon
enactment
and
applies
26
retroactively
to
January
1,
2021,
for
tax
years
beginning
on
27
or
after
that
date
but
before
tax
years
beginning
on
or
after
28
January
1,
2022.
29
DIVISION
III
——
UNEMPLOYMENT
COMPENSATION.
Under
the
bill,
30
a
taxpayer
who
has
received
compensation
authorized
pursuant
to
31
certain
federal
programs
shall
not
include
in
the
taxpayer’s
32
Iowa
net
income
the
following:
pandemic
unemployment
33
assistance;
pandemic
emergency
unemployment
compensation;
34
pandemic
unemployment
compensation
received
through
the
35
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memorandum
issued
by
the
president
of
the
United
States
on
1
August
8,
2020;
and
the
extension
of
pandemic
unemployment
2
compensation.
3
The
division
takes
effect
upon
enactment
and
applies
4
retroactively
to
January
1,
2020,
for
tax
years
beginning
on
or
5
after
that
date
but
before
January
1,
2022.
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