Iowa SSB3105 creates a state corporate income tax deduction for net controlled foreign corporation tested income.

Iowa SSB3105 amends the state corporate income tax code to create a deduction for net controlled foreign corporation tested income (NCTI). This change addresses the replacement of global intangible low-taxed income (GILTI) with NCTI under federal law. The bill modifies the tax code to continue allowing the deduction for income under section 951A of the Internal Revenue Code, now recharacterized as NCTI. The deduction applies retroactively to tax years beginning on or after January 1, 2026.

Iowa SSB3105 creates a state corporate income tax deduction for net controlled foreign corporation tested income.

Iowa SSB3105 amends the state corporate income tax code to create a deduction for net controlled foreign corporation tested income (NCTI). This change addresses the replacement of global intangible low-taxed income (GILTI) with NCTI under federal law. The bill modifies the tax code to continue allowing the deduction for income under section 951A of the Internal Revenue Code, now recharacterized as NCTI. The deduction applies retroactively to tax years beginning on or after January 1, 2026.