reglab/statecodes huggingface dataset:
Iowa Administrative Code › Agency 701 - Revenue Department › Title V - Pass-through Entity Income Tax › Chapter 405 - Composite Returns for Tax Years Beginning on or After January 1, 2022 › Rule 701-405.3 - Filing and Payment for Pass-through Entities

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Filing
				requirement.
A pass-through entity that is required to file an Iowa
				partnership return (IA 1065), Iowa income tax return for S corporations (IA
				1120S), or Iowa fiduciary return (IA 1041) and that has one or more nonresident
				members for any period of time during the tax year is required to file a
				composite return unless it meets the conditions for an exception outlined in
				subrule 405.5(1).
a. A pass-through entity
				with nonresident members must file a composite return and pay composite return
				tax on behalf of all nonresident members, except for the nonresident members
				the pass-through entity can demonstrate are exempt from the composite return
				requirement pursuant to subrule 405.5(2) or that have elected out of the
				composite return requirement pursuant to rule 701-405.6(422).
b. A pass-through entity must report all of
				its nonresident members, including nonresident members who are exempt from or
				who elect out of the composite return requirement, even though the pass-through
				entity is not required to pay composite return tax on behalf of those
				nonresident members. If all nonresident members are exempt from or elect out of
				the composite return requirement, the pass-through entity shall file a
				composite return reporting required information about all of its nonresident
				members and showing no composite return tax due.
c. Any pass-through entity required to file
				its Iowa partnership return (IA 1065), Iowa income tax return for S
				corporations (IA 1120S), or Iowa fiduciary return (IA 1041) for a tax year in
				an electronic format under Iowa Code section
				422.14,
				422.15, or 422.36 shall also be
				required to file its composite return for that tax year in an electronic
				format. Rule 701-8.7 (422) contains more
				information about mandatory electronic filing requirements.
d. The composite return may be filed
				electronically by way of the Internal Revenue Service Modernized e-File (MeF)
				program, also known as federal/state electronic filing; mailed to Income Tax
				Return Processing, Iowa Department of Revenue, P.O. Box 9187, Des Moines, Iowa
				50306-9187; or hand-delivered to the department's office in the Hoover State
				Office Building, First Floor, 1305 East Walnut Street, Des Moines, Iowa
				50319.
Iowa Administrative Code › Agency 701 - Revenue Department › Title V - Pass-through Entity Income Tax › Chapter 405 - Composite Returns for Tax Years Beginning on or After January 1, 2022 › Rule 701-405.4 - Nonresident Member Determination

Current through Register Vol. 47, No. 3, July 24, 2024
The following rules shall apply in determining who is a
				  nonresident member under Iowa Code section
				  422.16B(1)
"a"
:
(1) A partner,
				shareholder, or beneficiary of a pass-through entity shall be considered a
				nonresident member if any of the following were true for the entire period of
				time that person was a partner, shareholder, or beneficiary during that
				pass-through entity's tax year:
a. The person
				is an individual and was a nonresident of Iowa.
b. The person is a business entity and did
				not have a commercial domicile in Iowa as defined in Iowa Code section
				422.32.
c. The person is an estate
				or trust and did not have a situs in Iowa.
Iowa Administrative Code › Agency 701 - Revenue Department › Title V - Pass-through Entity Income Tax › Chapter 405 - Composite Returns for Tax Years Beginning on or After January 1, 2022 › Rule 701-405.5 - Exceptions to the Composite Return Requirement

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Filing
				and payment exceptions for pass-through entities.
Pass-through
				entities are not required to file a composite return or pay composite return
				tax if the entity meets any of the following conditions for the tax year:
a. The pass-through entity is a publicly
				traded partnership that meets the requirements of Iowa Code section
				422.16B(5)
"a."
b.
				The pass-through entity is engaged in disaster or emergency-related work during
				a disaster response period and is not required to file a composite return as
				provided in Iowa Code section
				29C.24.
c. The pass-through entity is prohibited
				under federal or state law from making distributions to members. This exception
				applies only for years in which distributions are prohibited under federal or
				state law. Contractual restrictions on distributions, such as loan covenants or
				organization documents, do not qualify an entity for this exception.
d. None of the pass-through entity's
				nonresident members have a positive amount of Iowa-source income from the
				pass-through entity. This exception does not apply if any nonresident member
				has a positive amount of Iowa-source income from the pass-through entity, even
				if the nonresident member has elected out of the composite return pursuant to
				rule 701-405.6 (422) and no composite
				return tax is due.
e. Only for tax
				years beginning during calendar year 2022, the pass-through entity meets one of
				the following requirements:
(1) The
				pass-through entity is a financial institution subject to the franchise tax
				under Iowa Code section 422.60 and files an Iowa franchise return for financial
				institutions (IA 1120F) required under Iowa Code section
				422.62 and pays any franchise
				tax shown due on that return.
(2)
				The pass-through entity wholly owns one or more financial institutions subject
				to the franchise tax under Iowa Code section
				422.60 that are treated as
				disregarded entities for federal and Iowa income tax purposes, substantially
				all (at least 90 percent) of the pass-through entity's gross income for the tax
				year is also reportable income on those wholly owned financial institutions'
				Iowa franchise return for financial institutions (IA 1120F) required under Iowa
				Code section 422.62, and those wholly owned
				financial institutions file their Iowa franchise return for financial
				institutions (IA 1120F) and pay any franchise tax shown due on that return.
This exception does not apply to any pass-through entity for
				  any tax year beginning on or after January 1, 2023.
Iowa Administrative Code › Agency 701 - Revenue Department › Title V - Pass-through Entity Income Tax › Chapter 405 - Composite Returns for Tax Years Beginning on or After January 1, 2022 › Rule 701-405.7 - Determination of Composite Return Tax

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Each
				nonresident member's distributive share of Iowa-source income from the
				pass-through entity shall be determined at the entity level in accordance with
				the Iowa statutes, administrative rules, and tax forms applicable to the
				pass-through entity's tax type, including provisions related to the allocation
				and apportionment of income.
(2) A
				partner's Iowa-source income includes the amount of nonseparately stated
				income, separately stated income including guaranteed payments, and separately
				stated deductions, attributable to Iowa as properly reported on the partner's
				IA 1065 Schedule K-1. A shareholder's Iowa-source income includes the amount of
				nonseparately stated income, separately stated income, and separately stated
				deductions, attributable to Iowa as properly reported on the shareholder's IA
				1120S Schedule K-1. A beneficiary's Iowa-source income includes the amount of
				distributable net income attributable to Iowa as properly reported on the
				beneficiary's IA 1041 Schedule K-1.
(3) No net operating loss or other
				owner-level tax attribute modification, or reduction for Iowa tax credits, is
				allowed in the computation of each nonresident member's Iowa-source income for
				purposes of the composite return. To claim an owner-level tax attribute
				modification, or an Iowa tax credit, the nonresident member must file the
				nonresident member's own Iowa tax return.
(4) If a nonresident member's Iowa-source
				income is a loss, that loss cannot be netted against the Iowa-source income of
				another nonresident member.
(5) The
				composite return tax for each nonresident member is computed by multiplying the
				nonresident member's Iowa-source income, if positive, by the highest tax rate
				applicable to that nonresident member. C corporations, or tax-exempt entities
				with unrelated business income, will be taxed at the highest corporate tax rate
				in Iowa Code section 422.33. Financial institutions
				will be taxed at the franchise tax rate in Iowa Code section
				422.63. Individuals, estates,
				trusts, partnerships, and S corporations (except those subject to the franchise
				tax) will be taxed at the highest individual tax rate in Iowa Code section
				422.5A. The sum of the composite
				return tax for all nonresident members is the pass-through entity's total
				composite return tax liability.
This rule is intended to implement Iowa Code section
				  422.16B.
Iowa Administrative Code › Agency 701 - Revenue Department › Title V - Pass-through Entity Income Tax › Chapter 405 - Composite Returns for Tax Years Beginning on or After January 1, 2022 › Rule 701-405.8 - Filing for Nonresident Members-composite Tax Credits

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
In
				general.
Nonresident members included on a pass-through entity's
				composite return may still have an Iowa return filing requirement. The
				nonresident member shall receive a refundable composite tax credit for the
				composite return tax paid on the nonresident member's behalf by the
				pass-through entity. The nonresident member's composite tax credit shall be
				claimed for the same tax year that the nonresident member's Iowa-source income
				from the pass-through entity is required to be reported on the nonresident
				member's Iowa income or franchise return.
(2)
Nonresident
				member-partnership.
A nonresident member that is a partnership is
				required to file the Iowa partnership return (IA 1065). The partnership is also
				subject to the composite return requirements if it has one or more nonresident
				members for any period of time during the tax year or if it desires to claim a
				composite tax credit it received from another pass-through entity. The
				partnership shall claim its composite tax credit on its composite return.
				Subrule 405.8(4) contains information related to financial institutions
				organized as pass-through entities.
(3)
Nonresident member-S
				corporation.
A nonresident member that is an S corporation is required
				to file the Iowa income tax return for S corporations (IA 1120S). The S
				corporation is also subject to the composite return requirements if it has one
				or more nonresident members for any period of time during the tax year or if it
				desires to claim a composite tax credit it received from another pass-through
				entity. The S corporation shall claim its composite tax credit on its composite
				return. Subrule 405.8(4) contains information related to financial institutions
				organized as pass-through entities.
(4)
Nonresident member-financial
				institution.
a. A nonresident member
				that is a financial institution as defined in Iowa Code section
				422.61 is required to file the
				Iowa franchise return for financial institutions (IA 1120F). The financial
				institution shall claim its composite tax credit on its Iowa franchise return
				for financial institutions (IA 1120F).
b. If the nonresident financial institution
				is organized as a pass-through entity, it is also required to file the Iowa
				partnership return (IA 1065) or the Iowa income tax return for S corporations
				(IA 1120S), as applicable, and is subject to the composite return requirements
				ifit has one or more nonresident members for any period of time during the tax
				year. In such instances, the financial institution may claim its composite tax
				credit on its Iowa franchise return for financial institutions (IA 1120F) or
				its composite return.
Iowa Administrative Code › Agency 701 - Revenue Department › Title V - Pass-through Entity Income Tax › Chapter 405 - Composite Returns for Tax Years Beginning on or After January 1, 2022 › Rule 701-405.9 - Composite Returns for Nonresidents Who Are Not Members of a Pass-through Entity

Current through Register Vol. 47, No. 3, July 24, 2024
(1) The department
				may require that a composite return be filed under this chapter for
				nonresidents who are not members of a pass-through entity. The requirement may
				be set forth in this chapter for a category of persons or may be made directly
				in writing by the department to a specific person.
(2) If a person who is not required to file a
				composite return under this chapter desires to do so for a group of
				nonresidents, the person shall request and receive permission from the
				department before filing the composite return. In order to be a valid request,
				the request must be in writing and must include sufficient information about
				the person making the request, the nonresidents to be included in the composite
				return, and the reason for filing on a composite return basis to enable the
				department to evaluate the request and make a determination. Once a valid
				request is received, the department may request additional information. Written
				requests shall be mailed to Policy Bureau, Research and Policy Division, Iowa
				Department of Revenue, P.O. Box 14467, Des Moines, Iowa 50306-3467.
This rule is intended to implement Iowa Code section
				  422.16B.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 500 - Administration › Rule 701-500.3 - Retention of Records

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Every
				corporation subject to the tax imposed by Iowa Code section
				422.33 (whether or not the
				corporation incurs liability for the tax) shall retain its books and records as
				required by Section 6001 of the Internal Revenue Code and Treasury Regulation
				Section 1.6001 -1(e) including the
				federal schedules required by 701-subrule 52.3(3). For taxpayers using an
				electronic data interchange process or technology also see 701-subrule
				11.4(4).
(2) In addition, records
				relating to the computation of the Iowa apportionment factor, allocable income,
				other deductions or additions to federal taxable income and Iowa tax credits
				shall be retained so long as the contents may be material in the administration
				of the Iowa Code under the statutes of limitation for audit specified in Iowa
				Code section 422.25.
This rule is intended to implement Iowa Code sections
				  422.25 and
				  422.70.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 500 - Administration › Rule 701-500.4 - Cancellation of Authority to Do Business

Current through Register Vol. 47, No. 3, July 24, 2024
If a corporation required by Iowa Code section
				  422.40 to file any report or
				  return (including returns of information at source) or to pay any tax or fee,
				  fails to do so within 90 days after the time prescribed for making such returns
				  or payment, the director may certify such fact to the secretary of state, who
				  shall thereupon cancel the articles of incorporation or certificate of
				  authority (as the case may be) of such corporation, and the rights to such
				  corporation to carry on business in the state of Iowa as a corporation shall
				  thereupon cease. The statute provides for a penalty of not less than $100 nor
				  more than $1,000 for any person or persons who continue to exercise or attempt
				  to exercise any powers, privileges, or franchises granted under articles of
				  incorporation or certificate of authority after cancellation of the
				  same.
This rule is intended to implement Iowa Code section
				  422.40.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 500 - Administration › Rule 701-500.5 - Authority for Deductions

Current through Register Vol. 47, No. 3, July 24, 2024
Whether and to what extent deductions shall be allowed
				  depends upon specific legislative acts, and only where there is a clear
				  provision can any particular deduction be allowed. Therefore, a deduction will
				  be allowed only if the taxpayer can establish to the satisfaction of the
				  department the validity and correctness of such deduction. 71 Am. Jur. 2d State
				  and Local Taxation, Subsection 518 (1973).
This rule is intended to implement Iowa Code section
				  422.35.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 500 - Administration › Rule 701-500.6 - Jeopardy Assessments

Current through Register Vol. 47, No. 3, July 24, 2024
(1) A
				jeopardy assessment may be made where a return has been filed and the director
				believes for any reason that collection of the tax will be jeopardized by
				delay, or where a taxpayer fails to file a return, whether or not formally
				called upon to file a return. The department is authorized to estimate the
				income of the taxpayer upon the basis of available information, add penalty and
				interest, and demand immediate payment.
(2) A jeopardy assessment is due and payable
				when the notice of the assessment is served upon the taxpayer. Proceedings to
				enforce the payment of the assessment by seizure or sale of any property of the
				taxpayer may be instituted immediately.
This rule is intended to implement Iowa Code section
				  422.30.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 500 - Administration › Rule 701-500.7 - Information Confidential

Current through Register Vol. 47, No. 3, July 24, 2024
Iowa Code sections
				  422.20 and
				  422.72 apply generally to the
				  director, deputies, auditors, examiners, agents, present or former officers and
				  employees of the department. Disclosure of information from a taxpayer's filed
				  return or report or other confidential state information by department of
				  revenue personnel to a third person is prohibited under the above sections.
				  Other persons having acquired information disclosed in a taxpayer's filed
				  return or report or other confidential state information will be bound by the
				  same rules of secrecy under these sections as any member of the department and
				  will be subject to the same penalties for violations as provided by law. See
				  rule 701-6.3 (17A).
This rule is intended to implement Iowa Code sections
				  422.20,
				  422.38, and
				  422.72.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 500 - Administration › Rule 701-500.9 - Delegation of Authority to Audit and Examine

Current through Register Vol. 47, No. 3, July 24, 2024
Pursuant to statutory authority the director delegates to the
				  authorized assistants and employees the power to examine returns and make
				  audits; and to determine the correct amount of tax due, subject to review by or
				  appeal to the director.
This rule is intended to implement Iowa Code section
				  422.71.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 500 - Administration › Rule 701-500.10 - Corporate Income Tax Rate Adjustments

Current through Register Vol. 47, No. 3, July 24, 2024
By November 1, 2022, and by November 1 of each subsequent
				  year, the department of management shall determine the net corporate income tax
				  receipts for the preceding fiscal year and provide the amount determined to the
				  department of revenue. If the net corporate income tax receipts for the
				  preceding fiscal year exceed $700 million, the department of revenue will
				  adjust the corporate income tax rates to the rates that would have generated
				  $700 million in net corporate income tax receipts in the preceding fiscal
				  year.
(1)
Method for
				determination of the tax rates.
When the net corporate income tax
				receipts in the preceding fiscal year are sufficient to trigger a rate
				reduction, the department of revenue will adjust the corporate income tax rates
				according to the following method.
a. The
				department will use data from corporate tax returns for the most recent tax
				years for which the department has sufficient data available to calculate
				corporate income tax receipts for the applicable fiscal year as described in
				paragraphs 51.10(1)
"b"
and
"c."
b. The department will first estimate what
				the corporate tax revenue would be for the current tax year and the two
				preceding tax years corresponding to the fiscal year in question using the
				applicable corporate income tax rates.
c. The department will then apply lower
				marginal tax rates for those tax years to determine what marginal tax rates
				would have generated $700 million in net corporate income tax receipts in the
				preceding fiscal year.
d. In
				reducing the marginal tax rates, the department will first reduce the highest
				marginal rate until it is equal to the next highest rate, then reduce the two
				highest rates by equal amounts, until there is a single rate of 5.5
				percent.
e. The tax rates will be
				rounded down to the nearest one-tenth of 1 percent.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 501 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-501.2 - Time and Place for Filing Return

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Returns of corporations.
A return of income for all
				corporations must be filed on or before the due date. The due date for all
				corporations except for cooperative associations as defined in Section 6072(d)
				of the Internal Revenue Code is the last day of the fourth month following the
				close of the taxpayer's taxable year, whether the return be made on the basis
				of the calendar year or the fiscal year; or the last day of the period covered
				by an extension of time granted by the director. When the due date falls on a
				Saturday, Sunday, or holiday, the return will be due the following day that is
				not a Saturday, Sunday, or holiday. Iowa Code section
				421.9A contains additional
				information on due dates that fall on a Saturday, Sunday, or holiday. If a
				return is placed in the mail, properly addressed and postage paid in ample time
				to reach the department on or before the due date for filing, no penalty will
				attach should the return not be received until after that date. Mailed returns
				should be addressed to Corporate Income Tax Processing, Hoover State Office
				Building, Des Moines, Iowa 50319.
(2)
Returns of cooperatives.
A return of income for cooperatives, defined in Section 6072(d) of the Internal
				Revenue Code, must be filed on or before the fifteenth day of the ninth month
				following the close of the taxpayer's taxable year.
(3)
Short period returns.
Where under a provision of the Internal Revenue Code, a corporation is required
				to file a tax return for a period of less than 12 months, a short period Iowa
				return must be filed for the same period. The short period Iowa return is due
				45 days after the federal due date, not considering any federal extension of
				time to file.
(4)
Extension
				of time for filing returns for tax years beginning on or after January 1,
				1991.
See 701-subrule 39.2(4).
This rule is intended to implement Iowa Code sections
				  422.21 and
				  422.24.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 501 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-501.4 - Payment of Tax

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Quarterly estimated payments.
Effective for taxable years
				beginning on or after July 1, 1977, corporations are required to make quarterly
				payments of estimated income tax. Rules pertaining to the estimated tax are
				contained in 701-Chapter 56.
(2)
				Reserved.
(3)
Penalty and
				interest on unpaid tax.
See rule
				701-10.6 (421) for penalty for
				tax periods beginning on or after January 1, 1991. See rule
				701-10.8 (421) for statutory
				exemptions to penalty for tax periods beginning on or after January 1, 1991.
Interest shall accrue on tax due from the original due date
				  of the return. Interest on refunds of any portion of the tax imposed by statute
				  which has been erroneously refunded and which is recoverable by the department
				  shall bear interest as provided by law from the date of payment of the refund,
				  considering each fraction of a month as an entire month. See rule
				  701-10.2 (421) for the statutory
				  interest rate.
All payments shall be first applied to the penalty and then
				  to the interest, and the balance, if any, to the amount of tax due.
(4)
Payment of tax by
				uncertified checks.
The department will accept uncertified checks in
				payment of income taxes, provided the checks are collectible for their full
				amount without any deduction for exchange or other charges unless requirements
				for electronic transmission of remittances and related information specify
				otherwise. The date on which the department receives the check will be
				considered the date of payment, so far as the taxpayer is concerned, unless the
				check is dishonored. If one check is remitted to cover two or more
				corporations' taxes, the remittance must be accompanied by a letter of
				transmittal stating:
(a) the name of the
				drawer of the check;
(b) the amount
				of the check;
(c) the amount of any
				cash, money order or other instrument included in the same
				remittance;
(d) the name of each
				corporation whose tax is to be paid by the remittance; and (e) the amount of
				payment on account of each corporation.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 501 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-501.6 - Motor Fuel Credit

Current through Register Vol. 47, No. 3, July 24, 2024
A corporation may elect to receive an income tax credit in
				  lieu of the motor fuel tax refund provided by Iowa Code chapter 452A. A
				  corporation which holds a motor fuel tax refund permit when it makes this
				  election must cancel the permit within 30 days after the first day of the tax
				  year. However, if the refund permit is not canceled within this period, the
				  permit becomes invalid at the time the election to receive an income tax credit
				  is made. The election will continue for subsequent tax years unless a new motor
				  fuel tax refund permit is obtained.
The amount of the income tax credit must be the amount of
				  Iowa motor fuel tax paid on qualifying fuel purchases as determined by Iowa
				  Code chapter 452A and Iowa Code section
				  422.110 less any state sales tax
				  as determined by 701-subrule 231.2(2). The credit must be claimed on the tax
				  return covering the tax year in which the motor fuel tax was paid. If the motor
				  fuel credit results in an overpayment of income tax, the overpayment may be
				  refunded or may be credited to income tax due in the subsequent tax
				  year.
Shareholders of S corporations may claim an income tax credit
				  on their individual income tax returns for their respective shares of the motor
				  vehicle fuel taxes paid by the corporations. The credit for a shareholder is
				  that person's pro rata share of the fuel tax paid by the corporation. A
				  schedule must be attached to the individual's return showing the distribution
				  of gallons and the amount of credit claimed by each shareholder.
The corporation must attach to its return a schedule showing
				  the allocation to each shareholder of the motor fuel purchased by the
				  corporation.
This rule is intended to implement Iowa Code section
				  422.33.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 501 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-501.10 - New Jobs and Income Program Tax Credits

Current through Register Vol. 47, No. 3, July 24, 2024
For tax years ending after May 1, 1994, for programs approved
				  after May 1, 1994, but before July 1, 2005, an investment tax credit under Iowa
				  Code section 15.333 and an additional
				  research activities credit under Iowa Code section
				  15.335 are available to an
				  eligible business. The new jobs and income program was repealed on July 1,
				  2005, and has been replaced with the high quality job creation program. See
				  rule 701-52.28 (15) for information
				  on the investment tax credit and additional research activities credit under
				  the high quality job creation program. Any investment tax credit and additional
				  research activities credit earned by businesses approved under the new jobs and
				  income program prior to July 1, 2005, remains valid, and can be claimed on tax
				  returns filed after July 1, 2005.
(1)
Definitions:
a.
"Eligible business"
means a business meeting the conditions of
				Iowa Code section 15.329.
b.
"Improvements to real
				property"
includes the cost of utility lines, drilling wells,
				construction of sewage lagoons, parking lots and permanent structures. The term
				does not include temporary structures.
c.
"Machinery and equipment"
means machinery used in manufacturing establishments and computers except
				point-of-sale equipment as defined in Iowa Code section
				427A.1. The term does not
				include computer software.
d.
"New investment directly related to new jobs created by the location or
				expansion of an eligible business under the program"
means the cost of
				machinery and equipment purchased for use in the operation of the eligible
				business which has been depreciated in accordance with generally accepted
				accounting principles and the cost of improvements to real property.
For the cost of improvements to real property to be eligible
				  for an investment tax credit, the improvements to real property must have
				  received an exemption from property taxes under Iowa Code section
				  15.332. Replacement machinery
				  and equipment and additional improvements to real property placed in service
				  during the period of property tax exemption by an eligible business qualify for
				  an investment tax credit.
For tax years beginning on or after January 1, 2001, the
				  requirement that the improvements to real property must have received an
				  exemption from property taxes under Iowa Code section
				  15.332 has been
				  eliminated.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 501 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-501.11 - Refunds and Overpayments

Current through Register Vol. 47, No. 3, July 24, 2024
(1) to (9)
				Reserved.
(10)
For refund
				claims received by the department after June 11, 1984.
If the amount
				of tax is reduced as a result of a net operating loss or net capital loss,
				interest shall accrue on the refund resulting from the loss carryback beginning
				on the date a claim for refund or amended return carrying back the net
				operating loss or net capital loss is filed with the department or the first
				day of the second calendar month following the actual payment date, whichever
				is later.
(11) to (13)
				Reserved.
(14)
Overpayment-interest accruing on overpayments resulting from returns
				due on or after April 30, 1981.
If the amount of tax determined to be
				due by the department is less than the amount paid, the excess to be refunded
				will accrue interest from the first day of the second calendar month following
				the date of payment or the date the return was due to be filed or was filed,
				whichever is the later.
This rule is intended to implement Iowa Code section
				  422.25.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 501 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-501.12 - Deduction of Credits

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Sequencing of credit deductions.
The credits against computed
				tax set forth in Iowa Code sections
				422.33 and
				422.110 shall be claimed in the
				following sequence.
a. Franchise tax
				credit.
b. Alternative minimum tax
				credit (for tax years beginning during 2021 only).
c. Qualifying business investment tax credit
				(also known as angel investor tax credit).
d. Historic preservation tax credit (when the
				taxpayer has elected that the credit be nonrefundable under Iowa Code section
				404A.2(4)).
e. School tuition
				organization tax credit.
f.
				Innovation fund investment tax credit.
g. Endow Iowa tax credit.
h. Redevelopment tax credit.
i. From farm to food donation tax
				credit.
j. Workforce housing tax
				credit.
k. Hoover presidential
				library tax credit.
l. Enterprise
				zone tax credit.
m. High quality
				jobs investment tax credit.
n. Wind
				energy production tax credit.
o.
				Renewable energy tax credit.
p. New
				jobs tax credit.
q. Beginning
				farmer tax credit.
r. Agricultural
				assets transfer tax credit.
s.
				Custom farming contract tax credit.
t. Solar energy system tax credit.
u. Charitable conservation contribution tax
				credit.
v. Alternative minimum tax
				credit (for tax years beginning before January 1, 2021, only).
w. Historic preservation tax credit (when the
				taxpayer has elected that the credit be refundableunder Iowa Code section
				404A.2(4)).
x. High quality jobs
				third-party developer tax credit.
y. Research activities credit.
z. Assistive device tax credit.
aa. Motor fuel tax credit.
ab. E-85 gasoline promotion tax
				credit.
ac. Biodiesel blended fuel
				tax credit.
ad. E-15 plus gasoline
				promotion tax credit.
ae. Renewable
				chemical production tax credit.
af.
				Estimated payments, payments with vouchers, and composite tax
				credits.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 501 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-501.13 - Livestock Production Credits

Current through Register Vol. 47, No. 3, July 24, 2024
For rules relating to the livestock production income tax
				  credit refunds see rule
				  701-43.8 (422).
This rule is intended to implement 1996 Iowa Acts, chapter
				  1197, sections 19, 20, and 21.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 501 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-501.14 - Enterprise Zone Tax Credits

Current through Register Vol. 47, No. 3, July 24, 2024
For tax years ending after July 1, 1997, for programs
				  approved after July 1, 1997, but before July 1, 2014, a business which
				  qualifies under the enterprise zone program is eligible to receive tax credits.
				  The enterprise zone program was repealed on July 1, 2014. Any tax credits
				  earned by businesses approved under the enterprise zone program prior to July
				  1, 2014, remain valid and can be claimed on tax returns filed after July 1,
				  2014. An eligible business under the enterprise zone program must be approved
				  by the economic development authority and meet the requirements of 2014 Iowa
				  Code section 15E.193. The administrative
				  rules for the enterprise zone program for the economic development authority
				  may be found at 261-Chapter 59.
(1)
Supplemental new jobs credit from withholding.
An eligible
				business approved under the enterprise zone program is allowed the supplemental
				new jobs credit from withholding as provided in 701-subrule 46.9(1).
(2)
Investment tax credit.
An eligible business approved under the enterprise zone program is allowed an
				investment tax credit of up to 10 percent of the new investment which is
				directly related to new jobs created by the location or expansion of the
				eligible business.
The provisions under the new jobs and income program for the
				  investment tax credit described in rule
				  701-52.10 (15) are applicable to
				  the enterprise zone program with the following exceptions:
a. The corporate tax credit for certain sales
				taxes paid by a developer described in subrule 52.10(5) does not apply for the
				enterprise zone program.
b. For
				projects approved on or after July 1, 2005, under the enterprise zone program,
				the investment tax credit will be amortized over a five-year period, as
				described in subrule 52.28(2).
c.
				For tax years ending on or after July 1, 2005, an eligible business approved
				under the enterprise zone program whose project primarily involves
				biotechnology-related processes may elect to receive a refund for all or a
				portion of an unused investment credit as described in subrule
				52.10(4).
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 501 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-501.16 - Franchise Tax Credit

Current through Register Vol. 47, No. 3, July 24, 2024
For tax years beginning on or after January 1, 1998, a
				  shareholder in a financial institution as defined in Section 581 of the
				  Internal Revenue Code which has elected to have its income taxed directly to
				  the shareholders may take a tax credit equal to the shareholder's pro rata
				  share of the Iowa franchise tax paid by the financial institution.
The credit must be computed by recomputing the amount of tax
				  computed under Iowa Code section
				  422.33 by reducing the
				  shareholder's taxable income by the shareholder's pro rata share of the items
				  of income and expenses of the financial institution and deducting from the
				  recomputed tax the credits allowed by Iowa Code section
				  422.33. The recomputed tax must
				  be subtracted from the amount of tax computed under Iowa Code section
				  422.33 reduced by the credits
				  allowed in Iowa Code section
				  422.33.
The resulting amount, not to exceed the shareholder's pro
				  rata share of the franchise tax paid by the financial institution, is the
				  amount of tax credit allowed the shareholder.
This rule is intended to implement Iowa Code section
				  422.33, as amended by 1999 Iowa
				  Acts, chapter 95.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 501 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-501.24 - Soy-based Cutting Tool Oil Tax Credit

Current through Register Vol. 47, No. 3, July 24, 2024
Effective for tax periods ending after June 30, 2005, and
				  beginning before January 1, 2007, a manufacturer may claim a soy-based cutting
				  tool oil tax credit. A manufacturer, as defined in Iowa Code section
				  428.20, may claim the credit
				  equal to the costs incurred during the tax year for the purchase and
				  replacement costs relating to the transition from using nonsoy-based cutting
				  tool oil to using soy-based cutting tool oil.
All of the following conditions must be met to qualify for
				  the tax credit.
1. The costs must be
				incurred after June 30, 2005, and before January 1, 2007.
2. The costs must be incurred in the first 12
				months of the transition from using nonsoy-based cutting tool oil to using
				soy-based cutting tool oil.
3. The
				soy-based cutting tool oil must contain at least 51 percent soy-based
				products.
4. The costs of the
				purchase and replacement must not exceed $2 per gallon of soy-based cutting
				tool oil used in the transition.
5. The number of gallons used in the
				transition cannot exceed 2,000 gallons.
6. The manufacturer shall not deduct for Iowa
				income tax purposes the costs incurred in the transition to using soy-based
				cutting tool oil which are deductible for federal tax purposes.
Any credit in excess of the taxpayer's tax liability is
				  refundable. In lieu of claiming the refund, the taxpayer may elect to have the
				  overpayment credited to the tax liability for the following tax year.
If a taxpayer is a partnership, limited liability company, S
				  corporation, or an estate or trust electing to have the income taxed directly
				  to an individual, an individual may claim the credit. The amount claimed by an
				  individual must be based on the individual's pro rata share of the individual's
				  earnings of the partnership, limited liability company, S corporation, or
				  estate or trust.
This rule is intended to implement Iowa Code section
				  422.33 as amended by 2005 Iowa
				  Acts, Senate File 389.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 501 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-501.29 - Economic Development Region Revolving Fund Tax Credit

Current through Register Vol. 47, No. 3, July 24, 2024
Effective for tax years ending on or after July 1, 2005, but
				  beginning before January 1, 2010, a taxpayer who makes a contribution to an
				  economic development region revolving fund may claim a tax credit, subject to
				  the availability of the credit. The credit is equal to 20 percent of a
				  taxpayer's contribution to the economic development region revolving fund
				  approved by the Iowa department of economic development. The administrative
				  rules for the economic development region revolving fund tax credit for the
				  Iowa department of economic development may be found at 261-Chapter 32. The tax
				  credit is repealed for tax years beginning on or after January 1, 2010.
The total amount of economic development region revolving
				  fund tax credits available shall not exceed $2 million per fiscal year. The tax
				  credit shall not be carried back to a tax year prior to the year in which the
				  taxpayer redeems the credit. The economic development region revolving fund tax
				  credit is not transferable to any other taxpayer.
Any credit in excess of the tax liability for the tax year
				  may be credited to the tax liability for the following ten years or until used,
				  whichever is the earlier.
If a taxpayer is a partnership, limited liability company, S
				  corporation, or an estate or trust electing to have the income taxed directly
				  to the individual, an individual may claim the credit. The amount claimed by an
				  individual must be based on the individual's pro rata share of the individual's
				  earnings of the partnership, limited liability company, S corporation, or
				  estate or trust.
This rule is intended to implement Iowa Code sections
				  15E.232 and
				  422.33 as amended by 2010 Iowa
				  Acts, Senate File 2380.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 501 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-501.30 - E-85 Gasoline Promotion Tax Credit

Current through Register Vol. 47, No. 3, July 24, 2024
Effective for tax years beginning on or after January 1,
				  2006, a retail dealer of gasoline may claim an E-85 gasoline promotion tax
				  credit. "E-85 gasoline" means ethanol blended gasoline formulated with a
				  minimum percentage of between 70 percent and 85 percent of volume of ethanol,
				  if the formulation meets the standards provided in Iowa Code section
				  214A.2. For purposes of this
				  rule, tank wagon sales are considered retail sales. The credit is calculated on
				  Form IA 135.
(1)
Claiming the
				credit.
a.
Amount of
				credit.
The credit is calculated by multiplying the total number of
				E-85 gallons sold by the retail dealer during the tax year by the following
				designated rates:
Calendar years 2006, 2007, and 2008
25 cents
Calendar years 2009 and 2010
20 cents
Calendar year 2011
10 cents
Calendar years 2012 through 2024
16 cents
b.
Claiming the credit with other credits.
A taxpayer may claim
				the E-85 gasoline promotion tax credit even if the taxpayer also claims the
				ethanol blended gasoline tax credit provided in rule
				701-52.19 (422) for gallons sold
				prior to January 1, 2009, or the ethanol promotion tax credit provided in rule
				701-52.36 (422) for gallons sold
				on or after January 1, 2009, but prior to January 1, 2021, for the same tax
				year for the same ethanol gallons.
c.
Refundability.
Any credit
				in excess of the taxpayer's tax liability is refundable. In lieu of claiming
				the refund, the taxpayer may elect to have the overpayment credited to the tax
				liability for the following tax year.
d.
Transferability.
The
				credit may not be transferred to any other person.
e.
Example.
A taxpayer
				operated one retail motor fuel site in 2006 and sold 200,000 gallons of
				gasoline, of which 160,000 gallons was ethanol blended gasoline. Of these
				160,000 gallons, 1,000 gallons was E-85 gasoline. Taxpayer may claim the E-85
				gasoline promotion tax credit on the 1,000 gallons of E-85 gasoline sold during
				2006. Taxpayer is also entitled to claim the ethanol blended gasoline tax
				credit of two and one-half cents multiplied by 40,000 gallons, since this
				constitutes the gallons in excess of 60 percent of the total gasoline gallons
				sold for the 2006 tax year.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 501 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-501.31 - Biodiesel Blended Fuel Tax Credit

Current through Register Vol. 47, No. 3, July 24, 2024
Effective for tax years beginning on or after January 1,
				  2006, a retail dealer of biodiesel blended fuel may claim a biodiesel blended
				  fuel tax credit. "Biodiesel blended fuel" means a blend of biodiesel with
				  petroleum-based diesel fuel that meets the standards provided in Iowa Code
				  section 214A.2. In determining the
				  minimum percentage by volume of biodiesel, the department will take into
				  account reasonable variances due to testing and other limitations. For purposes
				  of this rule, tank wagon sales are considered retail sales. The credit is
				  calculated on Form IA 8864.
(1)
Calculating the credit.
a.
Gallonage requirement.
(1)
				Tax years beginning on or after January 1, 2006, but prior to January 1, 2009.
				In order for a retail dealer to qualify for the biodiesel blended fuel tax
				credit for tax years beginning on or after January 1, 2006, but prior to
				January 1, 2009, of the total gallons of diesel fuel that the retail dealer
				sells and dispenses during the tax year, 50 percent or more of those gallons
				must be biodiesel blended fuel formulated with a minimum percentage of 2
				percent by volume of biodiesel. The gallonage amounts for all motor fuel sites
				of a retail dealer are combined when calculating this gallonage
				requirement.
(2) Tax years
				beginning on or after January 1, 2009, but prior to January 1, 2012. For tax
				years beginning on or after January 1, 2009, but prior to January 1, 2012, the
				biodiesel blended fuel tax credit is calculated separately for each retail
				motor fuel site for which 50 percent or more of the total gallons of diesel
				fuel sold at the motor fuel site was biodiesel blended fuel formulated with a
				minimum percentage of 2 percent by volume of biodiesel.
(3) Tax years beginning on or after January
				1, 2012. For tax years beginning on or after January 1, 2012, the requirement
				that 50 percent of all diesel fuel gallons sold be biodiesel gallons to be
				eligible for the tax credit is eliminated. A retail dealer may qualify for the
				biodiesel fuel tax credit even if the gallons of biodiesel blended fuel sold is
				less than 50 percent of the total gallons of diesel fuel sold.