Iowa Legislature Creates Corporate Income Tax Deduction for NCTI

The Iowa Legislature enacted SF 2492, creating a corporate income tax deduction for Net Controlled Foreign Corporation Tested Income (NCTI). Iowa has created NCTI to conform state legislation with the new IRC Section 951A, which replaced Global Intangible Low-Taxed Income (GILTI) with NCTI. The law applies retroactively to tax years beginning on or after Jan. 1, 2026. [S.F. 2492, enacted 05/15/26]

This story was produced by Bloomberg Tax Automation, and edited by Bloomberg Tax staff.