Bill Text: IA SF214 | 2021-2022 | 89th General Assembly | Introduced


Bill Title: 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.

Spectrum: Partisan Bill (Democrat 18-0)

Status: (Introduced) 2021-02-15 - Fiscal note. [SF214 Detail]

Download: Iowa-2021-SF214-Introduced.html
Senate File 214 - Introduced 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 1 compensation from the individual income tax, and including 2 effective date and retroactive applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1862XS (3) 89 jm/jh
S.F. 214 Section 1. Section 422.7, Code 2021, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 63. a. Notwithstanding any other provision 3 of law to the contrary, for any tax year beginning on or after 4 January 1, 2020, but before January 1, 2022, subtract to the 5 extent included compensation or assistance received by the 6 taxpayer authorized pursuant to any of the following federal 7 programs: 8 (1) Pandemic unemployment assistance, Coronavirus Aid, 9 Relief, and Economic Security Act, Pub. L. No. 116-136, §2102. 10 (2) Pandemic emergency unemployment compensation, 11 Coronavirus Aid, Relief, and Economic Security Act, Pub. L. No. 12 116-136, §2107. 13 (3) Pandemic unemployment compensation related to 14 subparagraphs (1) and (2) approved by the memorandum 15 authorizing the other needs assistance program for major 16 disaster declarations related to the coronavirus disease 2019, 17 issued by the president of the United States on August 8, 2020. 18 (4) Extension of pandemic unemployment compensation under 19 subchapter 1 of the Consolidated Appropriations Act, 2021, Pub. 20 L. No. 116–260. 21 b. This subsection is repealed January 1, 2027. 22 Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate 23 importance, takes effect upon enactment. 24 Sec. 3. RETROACTIVE APPLICABILITY. This Act applies 25 retroactively to January 1, 2020, for tax years beginning on or 26 after that date but before January 1, 2022. 27 EXPLANATION 28 The inclusion of this explanation does not constitute agreement with 29 the explanation’s substance by the members of the general assembly. 30 This bill relates to the exclusion of certain unemployment 31 compensation from the individual income tax. 32 Under the bill, a taxpayer who has received compensation 33 authorized pursuant to certain federal programs shall not 34 include in the taxpayer’s Iowa net income any of the following: 35 -1- LSB 1862XS (3) 89 jm/jh 1/ 2
S.F. 214 pandemic unemployment assistance; pandemic emergency 1 unemployment compensation; pandemic unemployment compensation 2 received through the memorandum issued by the president of the 3 United States on August 8, 2020; and the extension of pandemic 4 unemployment compensation. 5 The bill takes effect upon enactment and applies 6 retroactively to January 1, 2020, for tax years beginning on or 7 after that date but before January 1, 2022. 8 -2- LSB 1862XS (3) 89 jm/jh 2/ 2
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