Senate Study Bill 1247 - Introduced
SENATE FILE _____
BY (PROPOSED COMMITTEE ON
WAYS AND MEANS BILL BY
CHAIRPERSON DAWSON)
A BILL FOR
1 An Act relating to pandemic relief by excluding certain
2 COVID-19 related grants from the individual and corporate
3 income taxes, and including effective date and retroactive
4 applicability provisions.
5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
TLSB 2786XC (4) 89
jm/jh
 S.F. _____
1 Section 1. Section 422.7, subsection 62, Code 2021, is
2 amended to read as follows:
3 62. a. Subtract, to the extent included, the amount of
4 any financial assistance qualifying COVID-19 grant provided to
5 an eligible small issued to an individual or business by the
6 economic development authority under the Iowa small business
7 relief grant program created during calendar year 2020 to
8 provide financial assistance to eligible small businesses
9 economically impacted by the COVID-19 pandemic, the Iowa
10 finance authority, or the department of agriculture and land
11 stewardship.
12 b. For purposes of this subsection, “qualifying COVID-19
13 grant” includes any grant identified by the department by rule
14 that was issued under a grant program administered by the
15 economic development authority, Iowa finance authority, or
16 the department of agriculture and land stewardship to provide
17 financial assistance to individuals and businesses economically
18 impacted by the COVID-19 pandemic.
19 c. The economic development authority, Iowa finance
20 authority, or the department of agriculture and land
21 stewardship shall notify the department of any COVID-19 grant
22 program that may qualify under this subsection in the manner
23 and form prescribed by the department.
24 d. This subsection is repealed January 1, 2024, and does not
25 apply to tax years beginning on or after that date.
26 Sec. 2. Section 422.35, subsection 30, Code 2021, is amended
27 to read as follows:
28 30. a. Subtract, to the extent included, the amount of
29 any financial assistance qualifying COVID-19 grant provided
30 to an eligible small issued to a business by the economic
31 development authority under the Iowa small business relief
32 grant program created during calendar year 2020 to provide
33 financial assistance to eligible small businesses economically
34 impacted by the COVID-19 pandemic, the Iowa finance authority,
35 or the department of agriculture and land stewardship.
LSB 2786XC (4) 89
-1- jm/jh 1/3
 S.F. _____
1 b. For purposes of this subsection, “qualifying COVID-19
2 grant” includes any grant identified by the department by rule
3 that was issued under a grant program administered by the
4 economic development authority, Iowa finance authority, or
5 the department of agriculture and land stewardship to provide
6 financial assistance to businesses economically impacted by the
7 COVID-19 pandemic.
8 c. The economic development authority, Iowa finance
9 authority, or the department of agriculture and land
10 stewardship shall notify the department of any COVID-19 grant
11 program that may qualify under this subsection in the manner
12 and form prescribed by the department.
13 d. This subsection is repealed January 1, 2024, and does not
14 apply to tax years beginning on or after that date.
15 Sec. 3. EFFECTIVE DATE. This Act, being deemed of immediate
16 importance, takes effect upon enactment.
17 Sec. 4. RETROACTIVE APPLICABILITY. This Act applies
18 retroactively to March 23, 2020 for tax years ending on or
19 after that date.
20 EXPLANATION
21 The inclusion of this explanation does not constitute agreement with
22 the explanation’s substance by the members of the general assembly.
23 This bill relates to pandemic relief by excluding certain
24 COVID-19 related grants from the individual and corporate
25 income taxes.
26 The bill excludes from the calculation of Iowa individual
27 and corporate income tax any qualifying COVID-19 grant issued
28 to an individual or business by the economic development
29 authority, the Iowa finance authority, or the department of
30 agriculture and land stewardship.
31 Under the bill, a “qualifying COVID-19 grant” includes
32 any grant identified by the department of revenue by rule
33 that was issued under a grant program administered by the
34 economic development authority, Iowa finance authority, or
35 the department of agriculture and land stewardship to provide
LSB 2786XC (4) 89
-2- jm/jh 2/3
 S.F. _____
1 financial assistance to individuals and businesses economically
2 impacted by the COVID-19 pandemic.
3 Under current law, financial assistance grants provided to
4 small businesses by the economic development authority under
5 the Iowa small business COVID-19 relief grant program are
6 excluded from the calculation of Iowa individual and corporate
7 income tax.
8 The COVID-19 grant income tax exclusion provided in the bill
9 is repealed on January 1, 2024, and does not apply to tax years
10 beginning on or after that date.
11 The bill takes effect upon enactment and applies
12 retroactively to March 23, 2020, for tax years ending on or
13 after that date.
LSB 2786XC (4) 89
-3- jm/jh 3/3


Statutes affected:
Introduced: 422.7, 422.35