This bill amends Iowa corporate income tax law regarding the apportionment of business income for airlines and qualified air freight forwarders. It introduces new provisions for how income derived from transportation operations is allocated to Iowa, specifically stating that for airlines, the income attributable to business within the state will be based on the proportion of miles traveled in Iowa compared to total miles traveled everywhere. For qualified air freight forwarders, the bill outlines a phased approach for apportioning income over several tax years, starting with 90% of income apportioned equitably in 2025 and gradually decreasing to 10% by 2033, with the remaining portion allocated based on the same mileage criteria.

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 provision, making these changes effective for tax years beginning on or after January 1, 2025.

Statutes affected:
Introduced: 422.33