Proyectos de ley › 89.ª Asamblea General
Relating to state deductibility of federal paycheck protection program loan forgiveness
Temas:Taxes
Dónde está ahora
- Hecho: Presentado1 de febrero de 2021
- Hecho: Subcomité8 de febrero de 2021
- Se detuvo: Comité del SenadoMurió al terminar la Asamblea General
- Sigue: Lo aprueba el Senado
- Sigue: Comité de la Cámara
- Sigue: Lo aprueba la Cámara
- Sigue: A gobernador(a)
- Sigue: Firmado como ley
Murió al terminar la sesión La sesión de 2022 terminó el 24 de mayo de 2022, la última sesión ordinaria de la Asamblea General. Los proyectos que no pasaron por ambas cámaras murieron. ¿Qué es el embudo (funnel)?
Qué contiene
La explicación oficial está en inglés; todavía no hay resumen en palabras sencillas.
This bill relates to the federal paycheck protection program. Under current law, for the tax year 2020 and later, Iowa law fully conforms with the federal treatment of forgiven paycheck protection program loans and excludes such amounts from net income and allows certain deductions for business expenses paid using those loans. For fiscal-year filers who received paycheck protection program loans during the 2019 tax year, current law excludes such amounts from net income, but does not allow certain deductions for business expenses paid using those loans.
Lea la explicación completa
The bill fully conforms with federal law for those fiscal-year filers who previously were excluded from such conformity and allows such filers to take business expense deductions using federal paycheck protection program loan proceeds that were forgiven.
Senate subcommittee
Named February 8, 2021. It hasn’t reported yet.
Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part
Nota fiscal
Resumen con IA This bill expands a tax exemption to include businesses that do not use a calendar year but received forgiven Paycheck Protection Program loans in 2019. It is projected to reduce net General Fund revenue by $5.3 million in fiscal year 2021. (en inglés)2
Lea la nota fiscal (en inglés)
Description
Senate File 196 expands an existing tax preference available for the income and deductions associated with a forgiven federal Paycheck Protection Program (PPP) loan to include taxpayers who received a PPP loan within the taxpayer’s 2019 tax year (TY).
Background
Existing Iowa law provides an income tax exemption and associated expense deduction for forgiven federal PPP loans for tax years beginning on or after January 1, 2020 (TY 2020). This change extends the same benefit to taxpayers whose tax year is not the calendar year and who received PPP income in TY 2019.
Assumptions
The Department of Revenue estimates that Iowa businesses that do not have a tax year that coincides with a calendar year have a total of $107.8 million in net PPP income that will be subject to Iowa income tax under existing law. The net PPP income amounts, average marginal tax rates, and income tax reductions assumptions are shown in the following table. It is anticipated that taxpayers will file returns or amended returns for TY 2019 prior to the end of FY 2021.
Fiscal Impact
Expanding the income tax exemption to include businesses with a tax year that is not a calendar year is projected to reduce net General Fund revenue by $5.3 million in FY 2021.PPP Net Marginal Tax
Taxpayer Type Income Tax Rate Reduction
Nonprofits 19.7$ 0.0% 0.0$ C Corporations 43.2$ 6.40% 2.8$ S Corps & Partnerships 38.2$ 5.58% 2.1$ Individuals 6.7$ 5.35% 0.4$ 107.8$ 5.3$
Paycheck Protection Program Tax Exemption
Projected General Fund Revenue Reduction
Dollars in Millions
Source
- Department of Revenue
- Income Tax, Business Deductions for Paycheck Protection Program · 15 de febrero de 2021
Cabildeo
5 a favor · 0 en contra · 5 indecisos · Quiénes →
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