The Iowa House has unanimously approved state tax breaks for some unemployed Iowans as well as Iowa business owners who got grants and loans financed with FEDERAL pandemic relief funds. The plan means Iowans who qualified for temporary federal unemployment would not have to pay state income taxes on those benefits. In addition, state income taxes would not be charged on the federal Paycheck Protection Program grants and loans to Iowa businesses. Representative Dave Jacoby, a Democrat from Coralville, cheered the bipartisan plan.

Senators have already agreed to exempt P-P-P loans and grants from state taxes. The bill now goes back to the Senate for a vote on erasing state income taxes on the expanded federal benefits to Iowans who were unemployed during the pandemic.