This bill amends the Iowa corporate income tax law regarding the apportionment of business income for airlines and qualified air freight forwarders. It introduces new provisions that specify how income derived from transportation operations should be apportioned based on the mileage traveled within Iowa compared to total mileage traveled everywhere. For airlines, the bill establishes that the income attributable to business within the state will be calculated using the proportion of miles traveled in Iowa. For qualified air freight forwarders, the bill outlines a gradual change in the apportionment percentage over several tax years, starting with 90% for the 2025 tax year and decreasing to 10% by 2033, with the remaining income apportioned similarly based on the affiliated airline's mileage.

Additionally, the bill defines a "qualified air freight forwarder" as a taxpayer primarily engaged in facilitating air transportation of property, who does not operate aircraft but is part of an affiliated group with an airline. The bill also updates existing legal language by replacing references to certain subparagraph divisions and includes a retroactive applicability clause, making the new provisions effective for tax years beginning on or after January 1, 2025.

Statutes affected:
Introduced: 422.33