Iowa Bill Would Omit Virus Grants, Forgiven PPP Loans From Tax

Iowa would exclude grants given as a response to the novel coronavirus pandemic and forgiven federal small-business loans from state income tax under a bill introduced in the state Senate.

S.S.B. 1198, which the Committee on Ways and Means introduced Tuesday, would exclude grants issued by the state's economic development authority as pandemic assistance from state individual and corporate income tax. The bill would also exclude forgiven Paycheck Protection Program loan amounts that were issued as a part of the Coronavirus Aid, Relief, and Economic Security Act .

If enacted, the bill would take immediate effect and retroactively apply provisions to March 23, 2020. The bill would automatically be repealed beginning in 2024.

--Editing by Vincent Sherry. 

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