Bill Summary – FastDemocracy

House File 817 - Introduced
                                  HOUSE FILE 817
                                  BY PRICHARD, KURTH, B. MEYER,
                                      STAED, McCONKEY, JAMES,
                                      WILBURN, HANSEN, HUNTER,
                                      JACOBY, OLDSON, GJERDE,
                                      THEDE, BOHANNAN, FORBES,
                                      HALL, WILLIAMS, KONFRST,
                                      SUNDE, and MASCHER
                                  (COMPANION TO SF 290 BY
                                   BOLKCOM)
                            A BILL FOR
1 An Act relating to the exclusion of certain unemployment
2    compensation from the individual income tax, and including
3    effective date and retroactive applicability provisions.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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                                         H.F. 817
 1      Section 1. Section 422.7, Code 2021, is amended by adding
 2   the following new subsection:
 3      NEW SUBSECTION. 63. a. Subtract, to the extent included,
 4   the first ten thousand two hundred dollars of state or
 5   federal unemployment compensation benefits including any
 6   pandemic-related unemployment compensation benefits received
 7   by the taxpayer for a tax year beginning on or after January 1,
 8   2020, but before January 1, 2021.
 9      b. This subsection is repealed January 1, 2026.
10      Sec. 2. EFFECTIVE DATE. This Act, being deemed of immediate
11   importance, takes effect upon enactment.
12      Sec. 3. RETROACTIVE APPLICABILITY. This Act applies
13   retroactively to January 1, 2020, for tax years beginning on or
14   after that date, but before January 1, 2021.
15                             EXPLANATION
16           The inclusion of this explanation does not constitute agreement with
17            the explanation’s substance by the members of the general assembly.
18      This bill relates to the exclusion of certain unemployment
19   compensation from the individual income tax.
20      Under the bill, the first $10,200 of state or federal
21   unemployment compensation, including pandemic-related
22   unemployment compensation, shall be excluded from the
23   calculation of a taxpayer’s Iowa net income for purposes of the
24   state individual income tax.
25      The bill takes effect upon enactment and applies
26   retroactively to January 1, 2020, for tax years beginning on or
27   after that date but before January 1, 2021.
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Statutes affected: 
Introduced: 422.7