Bill Text: IA SF290 | 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) 2021-02-18 - Fiscal note. [SF290 Detail]

Download: Iowa-2021-SF290-Introduced.html
Senate File 290 - Introduced 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 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 2483XS (2) 89 jm/jh
S.F. 290 Section 1. Section 422.7, Code 2021, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 63. a. Subtract, to the extent included, 3 the first ten thousand two hundred dollars of state or 4 federal unemployment compensation benefits including any 5 pandemic-related unemployment compensation benefits received 6 by the taxpayer for a tax year beginning on or after January 1, 7 2020, but before January 1, 2021. 8 b. This subsection is repealed January 1, 2026. 9 Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate 10 importance, takes effect upon enactment. 11 Sec. 3. RETROACTIVE APPLICABILITY. This Act applies 12 retroactively to January 1, 2020, for tax years beginning on or 13 after that date, but before January 1, 2021. 14 EXPLANATION 15 The inclusion of this explanation does not constitute agreement with 16 the explanation’s substance by the members of the general assembly. 17 This bill relates to the exclusion of certain unemployment 18 compensation from the individual income tax. 19 Under the bill, the first $10,200 of state or federal 20 unemployment compensation, including pandemic-related 21 unemployment compensation, shall be excluded from the 22 calculation of a taxpayer’s Iowa net income for purposes of the 23 state individual income tax. 24 The bill takes effect upon enactment and applies 25 retroactively to January 1, 2020, for tax years beginning on or 26 after that date but before January 1, 2021. 27 -1- LSB 2483XS (2) 89 jm/jh 1/ 1
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