IowaSF 249291st General Assembly (2025–2026)SenateWALLET

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.

Sponsored By: COMMITTEE ON WAYS AND MEANS

Signed by Governor

ways and means

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Lower Iowa tax on foreign subsidiary income

Iowa corporations can subtract certain foreign subsidiary income from Iowa taxable income. It covers income defined in federal section 951A, now called net controlled foreign corporation tested income, that is included in federal taxable income. This applies to tax years that begin on or after January 1, 2026. The law takes effect July 1, 2026, but the subtraction applies to those 2026 tax years. This lowers Iowa corporate income tax owed.

Sponsors & Cosponsors

Sponsor

  • COMMITTEE ON WAYS AND MEANS

    Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 131 • No: 0

House vote 5/2/2026

Passed House

Yes: 85 • No: 0

Senate vote 4/27/2026

Passed Senate

Yes: 46 • No: 0

Actions Timeline

  1. Signed by Governor.

    5/15/2026Governor
  2. Fiscal note.

    5/14/2026legislature
  3. Reported correctly enrolled, signed by President and Speaker, and sent to Governor.

    5/11/2026Senate
  4. Message from House.

    5/2/2026House
  5. Immediate message.

    5/2/2026legislature
  6. Explanations of votes.

    5/2/2026legislature
  7. Passed House, yeas 85, nays 0.

    5/2/2026House
  8. Placed on Ways and Means calendar.

    5/1/2026legislature
  9. Committee vote: Yeas, 24. Nays, 0. Excused, 1.

    5/1/2026legislature
  10. Committee report, recommending passage.

    5/1/2026legislature
  11. Subcommittee recommends passage.

    4/30/2026legislature
  12. Subcommittee Meeting: 04/30/2026 8:30AM RM 102.

    4/29/2026legislature
  13. Subcommittee: Behn, Kurth and Siegrist.

    4/29/2026legislature
  14. Read first time, referred to Ways and Means.

    4/28/2026legislature
  15. Message from Senate.

    4/27/2026Senate
  16. Immediate message.

    4/27/2026legislature
  17. Passed Senate, yeas 46, nays 0.

    4/27/2026Senate
  18. Fiscal note.

    4/20/2026legislature
  19. Committee report, approving bill.

    4/15/2026legislature
  20. Introduced, placed on Ways and Means calendar.

    4/15/2026legislature

Bill Text

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