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IA SF2292
Bill
AI Summary
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Amends Iowa Code section 422.35 to update the state corporate income tax deduction for controlled foreign corporation income, removing the specific reference to "global intangible low-taxed income" (GILTI) while maintaining the deduction for income under IRC section 951A
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Responds to recent federal legislation that replaced GILTI with "net controlled foreign corporation tested income" (NCTI) under the same Internal Revenue Code section 951A
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NCTI applies more broadly to foreign income than GILTI and represents the aggregate net income earned by a taxpayer from controlled foreign corporations that is subject to federal tax
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Applies retroactively to tax years beginning on or after January 1, 2026
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Ensures Iowa corporations continue receiving the state tax deduction for foreign subsidiary income despite the federal terminology change
Legislative Description
A bill for an act creating a state corporate income tax deduction for net controlled foreign corporation tested income, and including retroactive applicability provisions.(Formerly SSB 3105.)
Last Action
Subcommittee recommends passage.
3/4/2026