SF2292 • 2026

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 ; See SF 2492 .)

Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: COMMITTEE ON COMMERCE
Last action: 2026-04-15
Official status: Committee report approving bill, renumbered as SF 2492 . S.J. 807 .
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

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 ; See SF 2492 .)

What This Bill Does

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 ; See SF 2492 .)

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

2026-04-15 Iowa Legislature
Committee report approving bill, renumbered as SF 2492 . S.J. 807 .
2026-03-04 Iowa Legislature
Subcommittee recommends passage.
2026-03-03 Iowa Legislature
Subcommittee Meeting: 03/04/2026 2:30PM Room 315.
2026-02-18 Iowa Legislature
Subcommittee: Bousselot, Reichman, and Winckler. S.J. 314 .
2026-02-16 Iowa Legislature
Referred to Ways and Means. S.J. 289 .
2026-02-12 Iowa Legislature
Committee report, approving bill. S.J. 280 .
2026-02-12 Iowa Legislature
Introduced, placed on calendar. S.J. 268 .

Official Summary Text

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 ; See SF 2492 .)

Current Bill Text

Read the full stored bill text

Senate

File

2292

-

Introduced

SENATE

FILE

2292

BY

COMMITTEE

ON

COMMERCE

(SUCCESSOR

TO

SSB

3105)

A

BILL

FOR

An

Act

creating

a

state

corporate

income

tax

deduction

for

net

1

controlled

foreign

corporation

tested

income,

and

including

2

retroactive

applicability

provisions.

3

BE

IT

ENACTED

BY

THE

GENERAL

ASSEMBLY

OF

THE

STATE

OF

IOWA:

4

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S.F.

2292

Section

1.

Section

422.35,

subsection

12,

Code

2026,

is

1

amended

to

read

as

follows:

2

12.

Subtract,

to

the

extent

included,

global

intangible

3

low-taxed

income

under

section

951A

of

the

Internal

Revenue

4

Code.

5

Sec.

2.

RETROACTIVE

APPLICABILITY.

This

Act

applies

6

retroactively

to

January

1,

2026,

for

tax

years

beginning

on

7

or

after

that

date.

8

EXPLANATION

9

The

inclusion

of

this

explanation

does

not

constitute

agreement

with

10

the

explanation’s

substance

by

the

members

of

the

general

assembly.

11

This

bill

creates

a

state

corporate

income

tax

deduction

for

12

net

controlled

foreign

corporation

tested

income

(NCTI).

13

Currently,

Code

section

422.35(12)

specifically

references

14

global

intangible

low-taxed

income

(GILTI)

under

section

951A

15

of

the

Internal

Revenue

Code

(IRC)

for

purposes

of

a

state

16

corporate

income

tax

deduction

allowed

under

that

Code

section.

17

Recent

federal

legislation

replaced

GILTI

with

NCTI

under

18

section

951A

of

the

IRC.

NCTI

is

the

aggregate

amount

of

net

19

income

subject

to

federal

tax

that

is

earned

by

a

taxpayer

from

20

controlled

foreign

corporations

of

the

taxpayer,

and

is

applied

21

more

broadly

to

foreign

income

than

GILTI.

22

Since

the

federal

legislation

replaced

GILTI

with

NCTI

in

23

the

same

section

of

the

IRC

(951A),

the

state

corporate

income

24

tax

deduction

no

longer

applies

because

Code

section

422.35(12)

25

specifically

references

GILTI

income

under

section

951A

of

the

26

IRC.

The

bill

strikes

the

specific

reference

to

GILTI

but

27

continues

to

allow

the

deduction

for

income

under

section

951A

28

of

the

IRC

which

is

now

recharacterized

as

NCTI.

29

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