Iowa Lawmaker Seeks to Exempt Foreign Income From Tax Returns

Multinational corporations owing tax in Iowa could catch a break from having to report offshore earnings under a proposal unveiled Wednesday.

Iowa House Ways and Means Committee Chairman Rep. Lee Hein (R) proposed House Study Bill 708, which would eliminate a current requirement for businesses to recognize global intangible low-taxed income, or GILTI, on their state tax returns.

The proposed bill comes one week after the Department of Revenue published a rule that requires multinationals to itemize GILTI on their state returns after removing any federal deductions under federal tax code Section 250. Multinationals’ tax bills ...