A bill for an act concerning the apportionment of certain business income of an airline or a qualified air freight forwarder for purposes of Iowa corporate income tax, and including retroactive applicability provisions.

This bill changes how Iowa taxes income from airlines and certain air freight forwarders. It requires airlines to calculate their Iowa tax liability based on the proportion of their total flight miles traveled within Iowa. For qualified air freight forwarders (businesses that arrange air cargo without operating planes), the bill gradually shifts more of their income to be taxed based on Iowa mileage - from 90% in 2025 down to 10% by 2033, then fully based on Iowa mileage starting in 2034. The changes apply retroactively to tax years beginning January 1, 2025, directly affecting these businesses' Iowa corporate tax calculations.