A bill for an act creating a state corporate income tax deduction for net controlled foreign corporation tested income, and including retroactive applicability provisions.

SF 2292 updates Iowa's corporate tax code to maintain a deduction for net controlled foreign corporation tested income (NCTI), aligning with recent federal tax law changes. It replaces the outdated reference to "global intangible low-taxed income" (GILTI) with NCTI under federal Section 951A, ensuring Iowa businesses can still claim this deduction. The bill directly affects Iowa corporations with foreign operations that previously relied on this deduction under state law. It applies retroactively to tax years beginning January 1, 2026, to correct a technical gap caused by federal legislation.