Reform Guidance - GILTI & FDII

For tax years beginning on or after January 1, 2019, Iowa conforms with the federal Internal Revenue Code (IRC) in effect on March 24, 2018. This means that the starting point for calculating Iowa income taxes includes most of the changes made to the IRC as of November 20, 2019 (with certain exceptions). Iowa did not conform with many of these changes for tax year 2018. See the 2018 Iowa Nonconformity Adjustments Worksheet for information about how to make the necessary adjustments for GILTI, FDII, and other Tax Cuts and Jobs Act (TCJA) items for tax year 2018.

The Department may update this guidance in the future in response to any comments or questions that we receive. Please check this page regularly for any updates. If you have questions or comments on this guidance, please submit them through our Request for Tax Guidance form.