House Bill 213 — Income tax, federal relief moneys

House Bill 213 — Income tax, federal relief moneys

by
Parrish Miller
February 24, 2021

Bill Description: House Bill 213 exempts Rebound Idaho Small Business Grants and loans from the Paycheck Protection Program from state income tax; it also makes rental assistance taxable. 

Rating: 0

Does it directly or indirectly create or increase any taxes, fees, or other assessments? Conversely, does it eliminate or reduce any taxes, fees, or other assessments?

House Bill 213 amends Section 63-3022, Idaho Code, to exempt from Idaho income tax "Idaho rebound cash grants for small businesses received under the provisions of the coronavirus aid, relief, and economic security act, P.L. 116-136." It also exempts "loans forgiven pursuant to the paycheck protection program and health care enhancement act, P.L. 116-139, and the paycheck protection program flexibility act of 2020, P.L. 116-142, except for any forgiven economic injury disaster loans advance funds."

(+1)

House Bill 213 further amends Section 63-3022, Idaho Code, to include as taxable income for Idaho income tax "loans forgiven pursuant to ... Section 1106 of the coronavirus aid, relief, and economic security act, P.L. 116-136" and "economic injury disaster loans advance funds under the paycheck protection program and health care enhancement act, P.L. 116-139." It also includes as taxable income "funds received pursuant to the emergency rental assistance program established by section 501 of division N of the consolidated appropriations act, 2021, P.L. 116-260.

(-1)

Analyst Note: Idaho could choose to exclude all federal relief money from state income tax, thereby increasing the benefit to Idahoans and adopting a clear and comprehensive policy favoring tax relief. Instead, House Bill 213 picks winners and losers, offering tax relief to some and not to others. 

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