The Iowa Department of Revenue has released updated guidance on the Income and Franchise Tax Exemption that was enacted in June 2020 as part of the Iowa Small Business Relief Program. The updated guidance explains the tax exemption, identifies qualifying grants and directs taxpayers on how to claim the exemption on their Iowa tax returns. The legislation, 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 updated guidance can be found on the Iowa Department of Revenue website at this link.