Struck = removed from the bill ·
added = the amendment's new text.
StrickenHall languageof wouldthe beHouse deletedof fromRepresentatives and93rd underlinedGeneral languageAssembly would- beRegular addedSession, to2021 presentAmendment law.Form ______________________________________________________________________ Subtitle of House Bill No.
State1361 ofTO ArkansasPROVIDE AsFOR Engrossed:THE TAX TREATMENT OF CERTAIN LOANS, PAYMENTS, AND EXPENSES RELATED TO CORONAVIRUS 2019 (COVID-19) RELIEF PROGRAMS;
H2/8/21 H2/10/21 93rd General Assembly A Bill Regular Session, 2021 HOUSE BILL 1361 5 By:
Representatives Eaves, Beaty Jr., L.
Fite, Fortner, D.
Garner, Hawks, M.
Hodges, Jean, Jett, Lundstrum, Lynch, J.
Mayberry, McClure, McCollum, M.
McElroy, McGrew, McNair, Milligan, Vaught, Warren, Wooten By:
Senators J.
Dismang, B.
Ballinger, Beckham, Bledsoe, Caldwell, L.
Chesterfield, A.
Clark, B.
Davis, L.
Eads, Elliott, J.
English, Flippo, T.
Garner, Gilmore, K.
Hammer, Hester, Hickey, Hill, K.
Ingram, Irvin, B.
Johnson, M.
Johnson, G.
Leding, M.
Pitsch, Rapert, Rice, B.
Sample, G.
Stubblefield, J.
Sturch, D.
Sullivan, Teague, D.
Wallace For An Act To Be Entitled AN ACT TO PROVIDE FOR THE TAX TREATMENT OF CERTAIN LOANS, PAYMENTS, AND EXPENSES RELATED TO CORONAVIRUS 2019 (COVID-19) RELIEF PROGRAMS;
TO PROVIDE CORONAVIRUS 2019 (COVID-19) RELIEF BY CONFORMING TO FEDERAL TAX TREATMENT OF CORONAVIRUS 2019 (COVID-19) RELIEF PROGRAMS;
TO DECLARE AN EMERGENCY;
AND FOR OTHER PURPOSES.
Subtitle TO PROVIDE FOR THE TAX TREATMENT OF CERTAIN LOANS, PAYMENTS, AND EXPENSES RELATED TO CORONAVIRUS 2019 (COVID-19) RELIEF PROGRAMS;
BE______________________________________________________________________ ITAmendment ENACTEDNo. BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
SECTION1 1.to House Bill 1361 Amend House Bill No.
DO1361 NOTas CODIFY.originally introduced:
LegislativePage intent.2, line 16, delete "the exclusion of income from" AND Page 2, delete lines 17 and 18, and substitute the following:
It"Program isloan theforgiveness;" intentAND ofPage the2, Generalline Assembly20, todelete provide"the reliefexclusion toof" smallAND businessesPage and2, othersdelete affectedlines by21 theand coronavirus22, 2019 (COVID-19) pandemic and tosubstitute easethe theirfollowing: tax compliance burdens by:
*JLL130*"subsequent 02-10-2021Paycheck 10:44:59Protection JLL130Program Asloan Engrossed:forgiveness;" AND Page 2, delete line 29, and substitute the following:
H2/8/21"(B) H2/10/21Amounts HB1361excluded (1)under Amendingthis thesubdivision Arkansas(b)(31) incomeare taxincludable lawsin to conform to the federaladjustments taxspecified treatmentin of§ Paycheck26-51-427(2). Protection Program loan forgiveness and other coronavirus 2019 (COVID-19) relief, as clarified by the recent enactment of the Consolidated Appropriations Act, 2021, Pub.
L.(C) The Department of Finance and Administration may" AND Page 2, line 36, delete "and a tax attribute shall not be reduced" AND Page 3, delete line 2, and substitute the following:
No.*.JLL142* JLL142 - 02-04-2021 07:46:08 Page 1 of 2 "(C) Amounts excluded under this subdivision (b)(32) are includable in the adjustments specified in § 26-51-427(2).
116-260,(D) onThe Decemberdepartment 27,may 2020;provide an exception from any" The Amendment was read ________________________________________________________________________________ By:
andRepresentative (2)Eaves ProvidingJLL/JLL similar- tax02-04-2021 treatment07:46:08 to_________________________ paymentsJLL142 madeChief underClerk theJLL142 Coronavirus- Food02-04-2021 Assistance07:46:08 ProgramAmendment asNo. described in 7 C.F.R.
Part1 9,to asHouse itBill existed1361 onPage January2 19,of 2021.2
SECTION 2.
Arkansas Code § 26-51-404(b), concerning exclusions from gross income under the Income Tax Act of 1929, is amended to add additional subdivisions to read as follows:
(31)(A) The following, which are adopted for purposes of computing Arkansas income tax liability:
(i) Title 15 U.S.C.
§ 636A(i), as in effect on January 1, 2021, after the redesignation provided by § 304(b) of the Consolidated Appropriations Act, 2021, Pub.
L.
No.
116-260, and the amendment provided by § 276(a) of the Consolidated Appropriations Act, 2021, Pub.
L.
No.
116-260, regarding the Paycheck Protection Program loan forgiveness;
(ii) Section 276(b) of the Consolidated Appropriations Act, 2021, Pub.
L.
No.
116-260, regarding subsequent Paycheck Protection Program loan forgiveness;
(iii) Section 277 of the Consolidated Appropriations Act, 2021, Pub.
L.
No.
116-260, concerning the tax treatment of certain emergency financial aid grants;
and (iv) Section 278 of the Consolidated Appropriations Act, 2021, Pub.
L.
No.
116-260, concerning the clarification of tax treatment of certain loan forgiveness and other business financial assistance.
(B) Amounts excluded under this subdivision (b)(31) are includable in the adjustments specified in § 26-51-427(2).
(C) The Department of Finance and Administration may provide an exception from any requirement to file an information return with respect to any amount excluded from gross income under this subdivision (b)(31);
and (32)(A) Payments received under the Coronavirus Food Assistance Program, described in 7 C.F.R.
Part 9, as it existed on January 19, 2021.
02-10-2021 10:44:59 JLL130 As Engrossed:
H2/8/21 H2/10/21 HB1361 (B) A tax deduction or a basis increase shall not be denied as a result of the exclusion from gross income provided in subdivision (32)(A) of this section.
(C) Amounts excluded under this subdivision (b)(32) are includable in the adjustments specified in § 26-51-427(2).
(D) The department may provide an exception from any requirement to file an information return with respect to any amount excluded from gross income under this subdivision (b)(32).
SECTION 3.
EFFECTIVE DATE.
Section 2 of this act is effective for tax years beginning on or after January 1, 2019.
SECTION 4.
EMERGENCY CLAUSE.
It is found and determined by the General Assembly of the State of Arkansas that the coronavirus 2019 (COVID- 19) pandemic caused an economic crisis in the state;
that the intent of the Paycheck Protection Program and other coronavirus 2019 (COVID-19) federal relief programs was to allow businesses to receive a tax break during the coronavirus 2019 (COVID-19) pandemic and the resulting economic downturn, which would enable more businesses to continue to operate and provide employment thereby preventing further economic collapse;
that the enactment of the Consolidated Appropriations Act, 2021, Pub.
L.
No.
116-260, on December 27, 2020, clarified the federal income tax treatment of Paycheck Protection Program loan forgiveness and other coronavirus 2019 (COVID-19) relief payments;
that Arkansas should conform its income tax laws to the federal tax treatment of these loans, payments, and expenses to enable Arkansas taxpayers to receive the full benefit of the tax laws so that they can continue to provide jobs for Arkansans and avoid higher rates of unemployment and financial distress;
and that this act is immediately necessary because the 2020 tax return season is underway and immediate conformity to the federal tax laws will assist the state with its economic recovery and will enable businesses to continue providing jobs that are necessary to the public peace, health, and safety.
Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on:
(1) The date of its approval by the Governor;
02-10-2021 10:44:59 JLL130 As Engrossed:
H2/8/21 H2/10/21 HB1361 (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill;
or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.
7 /s/Eaves 9 4 02-10-2021 10:44:59 JLL130