Daily Tax Report ®

Iowa Exempts Foreign Income From Corporate Tax Returns

June 30, 2020, 8:25 PM

Iowa, like most other states, won’t tax the offshore earnings of multinational companies, reversing an earlier decision about those earnings. The move delinks the state from a provision of the federal government’s 2017 tax overhaul.

Under legislation signed by Gov. Kim Reynolds Monday night, the state also won’t follow the federal limitations on deductions of business interest expenses.

The Republican governor approved H.F. 2641, an omnibus revenue bill amending several features of the state tax code. A key component decouples Iowa from the federal tax on global intangible low-taxed income, or GILTI. A separate feature...

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