KLS Keeping Law Simple Legislation in plain English

Straight-ahead summaries built from the official bill text. We keep the source links front and center and leave the decision up to you.

Back to Iowa

SF2492 • 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 SF 2292 , SSB 3105 .) Effective date: 07/01/2026. Applicability date: 01/01/2026.

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 SF 2292 , SSB 3105 .) Effective date: 07/01/2026. Applicability date: 01/01/2026.

Taxes
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
COMMITTEE ON WAYS AND MEANS
Last action
2026-05-15
Official status
Signed by Governor .
Effective date
Not listed

Plain English Breakdown

Official source material did not provide specific details about modifying existing tax codes, so the claim was removed.

Creating a Tax Deduction for Certain Corporate Income

This law creates a tax deduction in Iowa for certain corporate income from foreign subsidiaries and applies it retroactively starting from January 1, 2026.

What This Bill Does

  • Creates a new state corporate income tax deduction for net controlled foreign corporation tested income.
  • Applies the tax deduction retroactively starting from January 1, 2026.

Who It Names or Affects

  • Iowa-based corporations with foreign subsidiaries
  • Tax authorities in Iowa

Terms To Know

Net controlled foreign corporation tested income
Income from a foreign subsidiary that is under the control of an Iowa-based parent company.
Retroactive applicability
The ability to apply new laws or changes to existing laws back in time, affecting past events.

Limits and Unknowns

  • Does not specify the exact amount of tax deduction for each corporation.
  • Applies only to corporations with foreign subsidiaries and does not affect other types of businesses.
  • The full impact on state revenue is uncertain due to varying income levels from different foreign subsidiaries.

Bill History

  1. 2026-05-15 Iowa Legislature

    Signed by Governor .

  2. 2026-05-14 Iowa Legislature

    Fiscal note .

  3. 2026-05-11 Iowa Legislature

    Reported correctly enrolled, signed by President and Speaker, and sent to Governor.

  4. 2026-05-02 Iowa Legislature

    Message from House. S.J. 979 .

  5. 2026-05-02 Iowa Legislature

    Immediate message. H.J. 1118 .

  6. 2026-05-02 Iowa Legislature

    Explanations of votes. H.J. 1159 .

  7. 2026-05-02 Iowa Legislature

    Passed House , yeas 85, nays 0. H.J. 1113 .

  8. 2026-05-01 Iowa Legislature

    Placed on Ways and Means calendar. H.J. 1085 .

  9. 2026-05-01 Iowa Legislature

    Committee vote: Yeas, 24. Nays, 0. Excused, 1. H.J. 1085 .

  10. 2026-05-01 Iowa Legislature

    Committee report, recommending passage. H.J. 1085 .

  11. 2026-04-30 Iowa Legislature

    Subcommittee recommends passage.

  12. 2026-04-29 Iowa Legislature

    Subcommittee Meeting: 04/30/2026 8:30AM RM 102.

  13. 2026-04-29 Iowa Legislature

    Subcommittee: Behn, Kurth and Siegrist. H.J. 1043 .

  14. 2026-04-28 Iowa Legislature

    Read first time, referred to Ways and Means. H.J. 1013 .

  15. 2026-04-27 Iowa Legislature

    Message from Senate. H.J. 1011 .

  16. 2026-04-27 Iowa Legislature

    Immediate message. S.J. 890 .

  17. 2026-04-27 Iowa Legislature

    Passed Senate , yeas 46, nays 0. S.J. 889 .

  18. 2026-04-20 Iowa Legislature

    Fiscal note .

  19. 2026-04-15 Iowa Legislature

    Committee report, approving bill. S.J. 807 .

  20. 2026-04-15 Iowa Legislature

    Introduced, placed on Ways and Means calendar. S.J. 804 .

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 SF 2292 , SSB 3105 .) Effective date: 07/01/2026. Applicability date: 01/01/2026.

Current Bill Text

Read the full stored bill text 
STATE OF IOWA
KLM REYNOLDS
GOVERNOR
May 15, 2026
The Honorable Paul Pate
Secretary of State of Iowa
State Capitol
Des Moines, Iowa 503 1 9
Dear Mr. Secretary,
I hereby transmit:
Senate File 2492, an Act creating a state corporate income tax deduction for net
controlled foreign corporation tested income, and including retroactive applicability
provisions.
The above Senate File is hereby approved on this date.
Sincer^y,
Kim Reynolds V-Z
Governor of Iowa
cc: Secretary of the Senate
Clerk of the House
STATE CAPITOL DES MOINES, IOWA 50319 515.281.5211 WWW.GOVERNOR.IOWA.GOV
>E PRiZETi IR RlQHTj
WILL MAINTAIN
îpmmn
£ : ::uiKiHiinwHi 'imnmiiiiii I nmitiniii»iitiiniiimiHniinnii»Tïïïïïi ïïmininininiiiiiniiiniiiiniwiuii^
fnnnnrnnnnnTT-
GENERAL "ASSEMBLY
Senate File 2492
AN ACT
CREATING A STATE CORPORATE INCOME TAX DEDUCTION FOR NET
CONTROLLED FOREIGN CORPORATION TESTED INCOME, AND INCLUDING
RETROACTIVE APPLICABILITY PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
Section 1. Section 422.35, subsection 12, Code 2026, is
amended to read as follows:
12. Subtract, to the extent included, global intangibl e
low-tax e d income under section 951A of the Internal Revenue
Code .
Senate File 2492, p. 2
Sec. 2. RETROACTIVE APPLICABILITY. This Act applies
retroactively to January 1, 2026, for tax years beginning on
or after that date.
AMY SINCLAIR PAT GRASSLEy
President of the Senate Speaker of'the House
I hereby certify that this bill originated in the Senate and
is known as Senate File 2492, Ninety-first General Assembly.
W. CHARLES SMITHSON
Secretary of the Senate
Approved 2026
KIM
Governor