Iowa SF2292 creates a state corporate income tax deduction for net controlled foreign corporation tested income.

Iowa SF2292 amends the state corporate income tax deduction to include net controlled foreign corporation tested income (NCTI). This change comes after federal legislation replaced global intangible low-taxed income (GILTI) with NCTI under section 951A of the Internal Revenue Code (IRC). The bill modifies Code section 422.35(12) to remove the specific reference to GILTI and instead allow the deduction for income under section 951A of the IRC, now recharacterized as NCTI. The bill also includes retroactive applicability provisions, applying to tax years beginning on or after January 1, 2026.

Iowa SF2292 creates a state corporate income tax deduction for net controlled foreign corporation tested income.

Iowa SF2292 amends the state corporate income tax deduction to include net controlled foreign corporation tested income (NCTI). This change comes after federal legislation replaced global intangible low-taxed income (GILTI) with NCTI under section 951A of the Internal Revenue Code (IRC). The bill modifies Code section 422.35(12) to remove the specific reference to GILTI and instead allow the deduction for income under section 951A of the IRC, now recharacterized as NCTI. The bill also includes retroactive applicability provisions, applying to tax years beginning on or after January 1, 2026.