IDR Releases State Tax Guidance: Iowa Small Business Relief Grant Program

Tuesday - 01/19/2021

On June 29, 2020 Governor Reynolds signed into law House File 2641. The Department has released guidance to explain this tax change as it relates to the following:

  • Iowa Small Business Relief Program - Income and Franchise Tax Exemption

    House File 2641 in part exempts from the Iowa income and franchise tax the receipt of financial assistance grants provided by the Iowa Economic Development Authority under the Iowa Small Business Relief Grant Program. The Department has published updated guidance which describes this tax exemption, identifies qualifying grants, and directs taxpayers on how to claim this exemption on Iowa tax returns.

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