IowaIowa corporate tax calculations subtract certain federally covered income
For tax years beginning on or after January 1, 2026, businesses subtract certain income covered by federal rules when calculating Iowa corporate income tax.
What it does
Businesses calculating Iowa corporate income tax subtract certain income covered by federal rules, but only to the extent that income was included in the calculation.
Argument forBusinesses may owe less Iowa tax because they can subtract certain income already covered by federal tax rules.
Argument againstSubtracting this income could reduce Iowa tax collections, leaving less money available for state services.
More detail
Subtract the specified income when calculating Iowa corporate income tax. This applies to global intangible low-taxed income under section 951A of the federal Internal Revenue Code when calculating Iowa corporate income tax. Subtract the income only to the extent it was included in the calculation. The law applies retroactively to tax years beginning on or after January 1, 2026.
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Where it stands
- Introduced
- Passed 1st Chamber
- Passed 2nd Chamber
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- May 15Signed by Governor Kim Reynolds.Became Law
- May 14Fiscal note.
- May 11Reported correctly enrolled, signed by President and Speaker, and sent to Governor.To Governor
- May 2Message from House.
- Vote recorded Shall the bill pass? Result: pass.Lower
- May 2Immediate message.
- May 2Explanations of votes.
- May 2Passed House, yeas 85, nays 0.Passed 2nd Chamber
- May 1Placed on Ways and Means calendar.
- May 1Committee vote: Yeas, 24. Nays, 0. Excused, 1.
- May 1Committee report, recommending passage.Minor
- Apr 30Subcommittee recommends passage.Minor
- Apr 29Subcommittee Meeting: 04/30/2026 8:30AM RM 102.
- Apr 29Subcommittee: Behn, Kurth and Siegrist.
- Apr 28Read first time, referred to Ways and Means.Minor
- Apr 27Message from Senate.
- Vote recorded Shall the bill pass? Result: pass.Upper
- Apr 27Immediate message.
- Apr 27Passed Senate, yeas 46, nays 0.Passed 1st Chamber
- Apr 20Fiscal note.
- Apr 15Committee report, approving bill.Minor
- Apr 15Introduced, placed on Ways and Means calendar.Introduced
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