Creating a state corporate income tax deduction for net controlled foreign corporation tested income, and including retroactive applicability provisions

Where it is now

1. ✓
   Done: IntroducedFebruary 3, 2026
2. ✓
   Done: SubcommitteeFebruary 3, 2026
3. ✓
   Done: Senate committeeFebruary 11, 2026
4. ✓
   Done: Passes the SenateApril 27, 202646–0
5. ✓
   Done: House committeeMay 1, 2026
6. ✓
   Done: Passes the HouseMay 2, 202685–0
7. ✓
   Done: To the GovernorMay 11, 2026
8. ✓
   Done: Signed into lawMay 15, 2026

Became SF 2292 → Its progress continues under the new number. Go to SF 2292 What’s a funnel?

What’s in it

This bill creates a state corporate income tax deduction for net controlled foreign corporation tested income (NCTI).35(12) specifically references global intangible low-taxed income (GILTI) under section 951A of the Internal Revenue Code (IRC) for purposes of a state corporate income tax deduction allowed under that Code section. Recent federal legislation replaced GILTI with NCTI under section 951A of the IRC. NCTI is the aggregate amount of net income subject to federal tax that is earned by a taxpayer from controlled foreign corporations of the taxpayer, and is applied more broadly to foreign income than GILTI.

From the explanation printed with the bill as introduced, written by the Legislative Services Agency. Amendments adopted later aren’t reflected. Full bill text · What changed before it passed

Senate subcommittee

Named February 3, 2026. On February 9, 2026 it recommended passage.

• Sen. Mike Bousselot REmail
• Sen. Tony Bisignano DEmail
• Sen. Kara Warme REmail

Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part

Fiscal note

Senate File 2492 is expected to decrease revenue to the General Fund by the following amounts: • FY 2026 = $2.1 million • FY 2027 = $9.2 million • FY 2028 = $11.4 million • FY 2029 = $11.7 million • FY 2030 = $11.9 million • FY 2031 = $12.1 million 2

• Final Fiscal Note — Corporate Income Tax, Section 951A Income · May 14, 2026 · $12.1M
• Corporate Income Tax, Section 951A Income · April 20, 2026 · $12.1M

Nonpartisan cost estimates from the Legislative Services Agency’s Fiscal Services Division. The newest is first. Reading a fiscal note

Iowa Code it changes

Amends§422.35

Read from the bill as introduced. Each links to every bill touching that chapter of the Iowa Code. How the Code works

Family tree

Where this legislation came from and where it went: earlier tries, the versions it moved through this Assembly, and later bills built on it.

Earlier and later bills are matched by wording or an identical title; check the text to be sure it’s the same idea.