reglab/statecodes huggingface dataset:
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 504 - Assessments, Refunds, Appeals › Rule 701-504.3 - Refund of Overpaid Tax

Current through Register Vol. 47, No. 3, July 24, 2024
The following are provisions for refunding or crediting to
				  the taxpayer deposits or payments for tax in excess of amounts legally
				  due.
(1) A claim for refund of
				corporation income tax may be made on a form obtainable from the department.
				Claims for refund should not be mailed in the same envelope or attached to the
				return. In the case of a claim filed by an agent of the taxpayer, a power of
				attorney must accompany the claim.
(2) A corporate taxpayer shall not offset a
				refund or overpayment of tax for one year as a prior payment of tax of a
				subsequent year on the return of a subsequent year without authorization in
				writing by the department. The department may, however, apply an overpayment,
				or a refund otherwise due the taxpayer, to any tax due or to become due from
				the taxpayer.
(3) When an
				overpayment of estimated tax is indicated on the face of the return, the
				overpayment will ordinarily be refunded to the taxpayer by the department
				without the filing of a formal claim for refund. If a refund of the indicated
				overpayment is not received within a reasonable period of time, a claim for
				refund may be filed by the taxpayer on an official form obtainable from the
				Taxpayer Services Section, Iowa Department of Revenue, P.O. Box 10457, Des
				Moines, Iowa 50306.
If an overpayment of income tax is claimed as a credit
				  against estimated tax for the succeeding taxable year, such amount shall be
				  considered as a payment of the income tax for the succeeding taxable year and
				  no claim for credit or refund shall be allowed.
When a taxpayer elects to have an overpayment credited to
				  estimated tax for the succeeding year, interest may be properly assessed on a
				  deficiency of income tax for the year in which the overpayment arose. If a
				  taxpayer elects to have all or part of an overpayment shown on the return
				  applied to the estimated income tax for the succeeding taxable year or
				  refunded, the election is binding to the taxpayer.
An overpayment of tax may be used to offset any outstanding
				  tax liability owed by the taxpayer, but once an elected amount is credited as a
				  payment of estimated tax for the succeeding year, it loses its character as an
				  overpayment for the year in which it arose and thereafter cannot offset any
				  subsequently determined tax liability.
(4) Reserved.
(5) Refunds-statute of limitations for tax
				years ending after January 1, 1979. The statute of limitations with respect to
				which refunds or credits may be claimed are:
a. The later of
(1) Three years after the due date of payment
				upon which refund or credit is claimed; or
(2) One year after which such payment was
				actually made.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 505 - Estimated Tax for Corporations › Rule 701-505.1 - Who Must Pay Estimated Tax

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
General rule.
Every corporate taxpayer, including both
				domiciliary and nondomiciliary corporations, shall pay estimated tax if the
				amount of tax payable, less credits, can reasonably be expected to be more than
				$1,000 for the calendar or fiscal year. The amount of estimated tax paid shall
				be used as a credit on the Iowa corporate income tax return.
(2)
Definition.
For purposes
				of this division, "estimated tax" means the amount which the taxpayer estimates
				to be the tax due and payable under division III of Iowa Code chapter 422.
This rule is intended to implement Iowa Code section
				  422.85.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 505 - Estimated Tax for Corporations › Rule 701-505.2 - Time for Filing and Payment of Tax

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Time for filing.
a.
General rule.
The date for filing the first estimated tax
				payment is on or before the last day of the fourth month of the tax year. The
				estimated tax form is to be filed with Corporate Estimate Processing, P.O. Box
				10466, Des Moines, Iowa 50306.
b.
Amended estimates.
Generally, whenever a taxpayer who is
				required to make estimated tax payments has reason to believe that the
				taxpayer's Iowa income tax may increase or decrease, an amended estimate shall
				be filed at such time to reflect the increase or decrease in estimated Iowa
				income tax. The amended estimate shall be made on or before the next
				installment date. The unpaid balance after amending the estimate should be paid
				in equal installments on the remaining payment dates.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 505 - Estimated Tax for Corporations › Rule 701-505.4 - Reporting Forms

Current through Register Vol. 47, No. 3, July 24, 2024
Corporations which have paid estimated tax in the prior year
				  will receive by mail a preaddressed reporting form unless requirements for
				  electronic transmission of installments are met. Blank reporting forms are
				  available from the department for those making an estimate for the first time,
				  or when the preaddressed form is misplaced or lost.
This rule is intended to implement Iowa Code section
				  422.21.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 505 - Estimated Tax for Corporations › Rule 701-505.5 - Penalties

Current through Register Vol. 47, No. 3, July 24, 2024
Failure to file and underpayment of estimated tax.
(1)
Underpayment penalty.
a. A penalty is imposed for underpayment of
				the estimated tax by the taxpayer. This underpayment penalty is imposed whether
				or not there was reasonable cause for the underpayment. The Iowa penalty for
				underpayment of estimated tax is computed on Form IA 2220.
b. The amount of the underpayment penalty is
				determined at the statutory rate upon the amount of underpayment of the
				estimated tax for the period from the date the amount is required to be paid
				until the last day of the fourth month following the close of the income year,
				or the date the underpayment is paid, whichever is earlier.
EXAMPLE. A calendar year corporation is required to make four
				  equal estimated payments of $2,500 in the current year to meet the exception to
				  the underpayment of estimated tax penalty. The corporation does not make a
				  first quarter estimated payment which was due on April 30, but makes an
				  estimated payment of $5,000 for the second quarter on June 30. The corporation
				  is subject to the underpayment of estimated tax penalty for the period from
				  April 30 to June 30, when the underpayment was paid.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 600 - Administration › Rule 701-600.1 - Definitions

Current through Register Vol. 47, No. 3, July 24, 2024
(1) When the word
"department"
appears herein, it refers to and is synonymous
				with the "Iowa Department of Revenue"; the word
"director"
is
				the "Director of Revenue" or the director's authorized assistants and
				employees; the word
"tax"
is the "franchise tax on financial
				institutions"; and the word
"return"
is the "franchise tax
				return."
The administration of the franchise tax is a responsibility
				  of the department. The department is charged with the administration of the
				  franchise tax, subject always to the rules, regulations and direction of the
				  director.
(2) Effective June
				1, 1989, the term "financial institution" as used in division V of Iowa Code
				chapter 422 and in 701-Chapters 57 to 61 includes an Iowa chartered bank, a
				state bank chartered under the laws of any other state, a nationally chartered
				bank, a trust company, a federally chartered savings and loan association, a
				non-Iowa chartered savings bank, a financial institution chartered by the
				Federal Home Loan Bank Board, a non-Iowa chartered savings and loan
				association, an association incorporated or authorized to do business under
				Iowa Code chapter 534 or a production credit association.
Effective July 1, 2012, the term "financial institution" as
				  used in division V of Iowa Code chapter 422 and in 701-Chapters 57 to 61
				  includes an Iowa chartered bank, a state bank chartered under the laws of any
				  other state, a nationally chartered bank, a trust company, a federally
				  chartered savings and loan association, a non-Iowa chartered savings bank, a
				  financial institution chartered by the Federal Home Loan Bank Board, a non-Iowa
				  chartered savings and loan association or a production credit
				  association.
Unincorporated privately held financial institutions are
				  exempt from the franchise tax filing requirements.
(3) The term
"Internal Revenue
				Code"
means the Internal Revenue Code of 1954 prior to the date of its
				redesignation as the Internal Revenue Code of 1986 or the Internal Revenue Code
				of 1986, whichever is applicable.
This rule is intended to implement Iowa Code section
				  422.61 as amended by 2012 Iowa
				  Acts, Senate File 2202.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 600 - Administration › Rule 701-600.3 - Retention of Records

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Every
				financial institution subject to the tax imposed by Iowa Code section
				422.60 (whether or not the
				financial institution incurs liability for the tax) shall retain its books and
				records as required by Section 6001 of the Internal Revenue Code and federal
				income tax regulation 1.6001-1(e) including the federal schedules required by
				701-subrule 58.3(2). For taxpayers using an electronic data interchange process
				or technology also see 701-subrule 11.4(4).
(2) In addition, records relating to
				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 VII - Franchise Tax › Chapter 600 - Administration › Rule 701-600.4 - 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 the validity and correctness of
				  such a deduction.
71 Am. Jur. 2d State and Local Taxation, subsection
				  518 (1973).
This rule is intended to implement Iowa Code sections
				  422.35 and
				  422.61.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 600 - Administration › Rule 701-600.5 - 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 sections
				  422.30 and
				  422.66.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 600 - Administration › Rule 701-600.6 - Information Deemed Confidential

Current through Register Vol. 47, No. 3, July 24, 2024
Iowa Code section
				  422.72 applies 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 Iowa Code section
				  422.72. See rule
				  701-6.3 (17A).
This rule is intended to implement Iowa Code sections
				  422.66 and
				  422.72.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 600 - Administration › Rule 701-600.8 - Delegation 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 sections
				  422.66 and
				  422.70.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 601 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-601.1 - Who Must File

Current through Register Vol. 47, No. 3, July 24, 2024
Every financial institution as defined in 701-subrule
				  57.1(2), regardless of net income, shall file a true and accurate return of its
				  income or loss for the taxable period. The return shall be signed by the
				  president or other duly authorized officer. If the financial institution was
				  inactive or not doing business within Iowa, although qualified to do so, during
				  the taxable year, the return must contain a statement to that effect.
(1)
Income tax of financial
				institutions in liquidation.
When a financial institution is in the
				process of liquidation, or in the hands of a receiver, the franchise tax
				returns must be made under oath or affirmation of the persons responsible for
				the conduct of the affairs of such financial institutions, and must be filed at
				the same time and in the same manner as required of other financial
				institutions.
(2)
Franchise
				tax returns for financial institutions dissolved.
Financial
				institutions which have been dissolved during the income year must file
				franchise tax returns for the period prior to dissolution which has not already
				been covered by previous returns. Officers and directors are responsible for
				the filing of the returns and for the payment of taxes, if any, for the audit
				period provided by law.
Where a financial institution dissolves and disposes of its
				  assets without making provision for the payment of its accrued Iowa franchise
				  tax, liability for the tax follows the assets so distributed and upon failure
				  to secure the unpaid amount, suit to collect the tax may be instituted against
				  the stockholders and other persons receiving the property, to the extent of the
				  property received, except bona fide purchasers or others as provided by
				  law.
This rule is intended to implement Iowa Code sections
				  422.60 and
				  422.61.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 601 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-601.2 - Time and Place for Filing Return

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Returns of financial institutions.
A return of income for all
				financial institutions must be filed on or before the delinquency date. The
				delinquency date for all financial institutions is the day following the last
				day of the fourth month following the close of the taxpayer's taxable year,
				whether the return is made on the basis of the calendar year or the fiscal
				year; or the day following the last day of the period covered by an extension
				of time granted by the director. When the last day prior to the delinquency
				date falls on a Saturday, Sunday, or holiday, the return will be timely if it
				is filed on 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 delinquency date for filing, no
				penalty will attach should the return not be received until after that date.
				Mailed returns should be addressed to Franchise Tax Processing, P.O. Box 10413,
				Des Moines, Iowa 50306.
(2)
Short period returns.
Where under a provision of the Internal
				Revenue Code, a financial institution is required to file a tax return for a
				period of less than 12 months, a short period Iowa franchise tax return must be
				filed for the same period. The delinquency date for the short period return is
				45 days after the federal due date not considering any federal extension of
				time to file.
(3)
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
				  422.24,
				  422.62, and
				  422.66.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 601 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-601.4 - 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, financial institutions are required to make
				quarterly payments of estimated franchise tax. Rules pertaining to the
				estimated tax are contained in 701-Chapter 61.
(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,
				  with each fraction of a month considered to be 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 franchise taxes, provided such checks are collectible for their full
				amount without any deduction for exchange or other charges. 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 financial institutions' 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 financial institution
				whose tax is to be paid by the remittance; and
e. The amount of payment on account of each
				financial institution.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 601 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-601.6 - Refunds and Overpayments

Current through Register Vol. 47, No. 3, July 24, 2024
(1) to (8)
				Reserved.
(9)
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.
(10) Reserved.
(11)
Interest commencing on or after
				January 1, 1982.
See rule
				701-10.2 (421) regarding the
				rate of interest charged by the department on delinquent taxes and the rate
				paid by the department on refunds commencing on or after January 1,
				1982.
(12) Reserved.
(13)
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.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 601 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-601.7 - Allocation of Franchise Tax Revenues

Current through Register Vol. 47, No. 3, July 24, 2024
For fiscal years prior to July 1, 2004, each quarterly
				  distribution shall be made up of the tax shown due on the franchise tax returns
				  received during that quarter, net of all refunds of franchise tax established
				  during that quarter. In determining the portion of franchise tax revenues to be
				  distributed to cities and counties for fiscal years prior to July 1, 2004, each
				  financial institution, as defined by Iowa Code section
				  422.61, is required to submit
				  the appropriate allocation data with the filing of its Iowa franchise tax
				  return. Each financial institution shall accumulate or maintain data to
				  properly determine the business activity ratios as prescribed in subrules
				  58.7(1) and 58.7(2). The allocation shall be made on the basis of business
				  activity for each office location. The word "office" shall mean a branch
				  office, a drive-in bank depository or any other establishment whereby the
				  business pertaining to the financial institution is carried on.
(1)
Business activity determination
				for a production credit association.
A production credit association
				shall measure its business activity on the basis of loan volume. "Loan volume"
				shall mean total loans originated during the taxable period. The business
				activity for each office location shall be that percentage of loans originated
				by each office to total loans originated for all office locations during the
				taxable period.
(2)
Business activity determination for a financial institution other than
				a production credit association.
A financial institution, other than a
				production credit association, shall measure its business activity on a basis
				of net deposits. The business activity of each office shall be that percentage
				of average "savings and demand deposits net of withdrawals" for each office
				location to the total average "savings and demand deposits net of withdrawals"
				for all office locations.
This rule is intended to implement Iowa Code section
				  422.61.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 601 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-601.10 - Historic Preservation and Cultural and Entertainment District Tax Credit

Current through Register Vol. 47, No. 3, July 24, 2024
For tax years beginning on or after January 1, 2001, a
				  historic preservation and cultural and entertainment district tax credit,
				  subject to the availability of the credit, may be claimed against a taxpayer's
				  Iowa franchise tax liability for 25 percent of the qualified rehabilitation
				  costs to the extent the costs were incurred for the rehabilitation of eligible
				  property in Iowa. For information related to projects with Part 2 applications
				  approved and tax credits reserved prior to July 1, 2014, see rule
				  701-52.18 (404A,422). For
				  information related to projects registered on or after July 1, 2014, and before
				  August 15, 2016, see rule
				  701-52.47 (404A,422). For
				  information related to projects registered on or after August 15, 2016, see
				  rule 701-52.48 (404A,422). For
				  projects registered before August 15, 2016, see also the administrative rules
				  for the historic preservation and cultural and entertainment district tax
				  credit for the historical division of the department of cultural affairs under
				  223-Chapter 48. For projects registered on or after August 15, 2016, see also
				  the administrative rules for the historic preservation and cultural and
				  entertainment district tax credit for the economic development authority under
				  261-Chapter 49.
This rule is intended to implement Iowa Code chapter 404A as
				  amended by 2016 Iowa Acts, House File 2443, and Iowa Code section
				  422.60.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 601 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-601.12 - New Capital Investment Program Tax Credits

Current through Register Vol. 47, No. 3, July 24, 2024
Effective for tax periods beginning on or after January 1,
				  2003, a business which qualifies under the new capital investment program is
				  eligible to receive tax credits. An eligible business under the new capital
				  investment program must be approved by the Iowa department of economic
				  development and meet the qualifications of 2003 Iowa Acts, chapter 125, section
				  4. The new capital investment program was repealed on July 1, 2005, and has
				  been replaced with the high quality job creation program. See rules
				  701-52.28 (15) and
				  701-58.17 (15) for information
				  on the tax credits available under the high quality job creation program. Any
				  tax credits earned by businesses approved under the new capital investment
				  program prior to July 1, 2005, remain valid, and can be claimed on tax returns
				  filed after July 1, 2005.
This rule is intended to implement 2003 Iowa Acts, House File
				  677, sections 1 to 7, and Iowa Code section
				  15.333 as amended by 2003 Iowa
				  Acts, House File 677, section 8.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 601 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-601.14 - Wage-benefits Tax Credit

Current through Register Vol. 47, No. 3, July 24, 2024
Effective for tax years ending on or after June 9, 2006, a
				  wage-benefits tax credit, subject to the availability of the credit, equal to a
				  percentage of the annual wages and benefits paid for a qualified new job
				  created by the location or expansion of the business in Iowa is available for
				  eligible financial institutions. For information on the eligibility for the
				  wage-benefits tax credit, how to file applications for the wage-benefits tax
				  credit, how the wage-benefits tax credit is computed, the repeal of the
				  wage-benefits credit effective July 1, 2008, and other details about the
				  credit, see rule 701-52.25 (15I,422).
This rule is intended to implement Iowa Code chapter 15I as
				  amended by 2008 Iowa Acts, House File 2700, section 167, and Iowa Code
				  Supplement section 422.60(10)  as
				  amended by 2008 Iowa Acts, House File 2700, section 164.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 601 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-601.15 - Wind Energy Production Tax Credit

Current through Register Vol. 47, No. 3, July 24, 2024
Effective for tax years beginning on or after July 1, 2006,
				  owners of qualified wind energy production facilities approved by the Iowa
				  utilities board may claim a wind energy production tax credit for qualified
				  electricity sold by the owner against a taxpayer's Iowa franchise tax
				  liability. For information on the application and review process for the wind
				  energy production tax credit, how the wind energy production tax credit is
				  computed, how the wind energy production tax credit can be transferred and
				  other details about the credit, see rule
				  701-52.26 (422,476B). See also
				  the administrative rules for the wind energy production tax credit for the Iowa
				  utilities board in rules
				  199-15.18 (476B) and
				  199-15.20 (476B).
This rule is intended to implement Iowa Code section
				  422.60 and chapter
				  476B.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 601 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-601.16 - Renewable Energy Tax Credit

Current through Register Vol. 47, No. 3, July 24, 2024
Effective for tax years beginning on or after July 1, 2006, a
				  purchaser or producer of renewable energy whose facility has been approved by
				  the Iowa utilities board may claim a renewable energy tax credit for qualified
				  renewable energy against a taxpayer's Iowa franchise tax liability. For
				  information on the application and review process for the renewable energy tax
				  credit, how the renewable energy tax credit is computed, how the renewable
				  energy tax credit can be transferred and other details about the credit, see
				  rule 701-52.27 (422,476C). See also
				  the administrative rules for the renewable energy tax credit for the Iowa
				  utilities board in rules
				  199-15.19 (476C) and
				  199-15.21 (476C).
This rule is intended to implement Iowa Code section
				  422.60 and chapter
				  476C.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 601 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-601.17 - High Quality Job Creation Program

Current through Register Vol. 47, No. 3, July 24, 2024
Effective for tax periods ending on or after July 1, 2005,
				  for programs approved on or after July 1, 2005, but before July 1, 2009, a
				  business which qualifies under the high quality job creation program is
				  eligible to receive tax credits. The high quality job creation program replaces
				  the new jobs and income program and the new capital investment program. An
				  eligible business under the high quality job creation program must be approved
				  by the Iowa department of economic development and meet the qualifications of
				  Iowa Code section 15.329.
The high quality job creation program was repealed on July 1,
				  2009, and has been replaced with the high quality jobs program. See rule
				  701-52.40 (15) for information
				  on the investment tax credit under the high quality jobs program. Any
				  investment tax credit earned by businesses approved under the high quality job
				  creation program prior to July 1, 2009, remains valid, and can be claimed on
				  tax returns filed after July 1, 2009. The administrative rules for the high
				  quality jobs program for the Iowa department of economic development may be
				  found at 261-Chapter 68.
For information on what credits can be taken under this
				  program, how the investment tax credit is computed and other details about this
				  program, see rule 701-52.28 (15). However, the
				  research credit described in subrule 52.28(1) is not available for franchise
				  tax filers.
This rule is intended to implement Iowa Code Supplement
				  chapter 15.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 601 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-601.18 - 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.
This rule is intended to implement Iowa Code sections
				  15E.232 and
				  422.60 as amended by 2010 Iowa
				  Acts, Senate File 2380.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 601 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-601.19 - Film Qualified Expenditure Tax Credit

Current through Register Vol. 47, No. 3, July 24, 2024
Effective for tax years beginning on or after January 1,
				  2007, but beginning before January 1, 2012, a film qualified expenditure tax
				  credit is available for franchise tax. The tax credit is equal to 25 percent of
				  the taxpayer's qualified expenditures in a film, television, or video project
				  registered with the film office of the Iowa economic development authority (the
				  authority). For information on the qualified expenditures eligible for the
				  credit, how the film qualified expenditure tax credit is claimed, how the film
				  qualified expenditure tax credit can be transferred and other details about the
				  credit, see rule 701-52.34 (15,422). See also the
				  authority's administrative rules for the film qualified expenditure tax credit
				  at 261-Chapter 36.
This rule is intended to implement Iowa Code section
				  422.60 as amended by 2012 Iowa
				  Acts, House File 2337, section 36.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 601 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-601.20 - Film Investment Tax Credit

Current through Register Vol. 47, No. 3, July 24, 2024
Effective for tax years beginning on or after January 1,
				  2007, but beginning before January 1, 2012, a film investment tax credit is
				  available for franchise tax. The tax credit is equal to 25 percent of the
				  taxpayer's qualified expenditures in a film, television, or video project
				  registered with the film office of the Iowa economic development authority (the
				  authority). For information on how the film investment tax credit is claimed,
				  how the film investment tax credit can be transferred and other details about
				  the credit, see rule 701-52.35 (15,422). See also the
				  authority's administrative rules for the film investment tax credit at
				  261-Chapter 36.
This rule is intended to implement Iowa Code section
				  422.60 as amended by 2012 Iowa
				  Acts, House File 2337, section 36.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 601 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-601.21 - High Quality Jobs Program

Current through Register Vol. 47, No. 3, July 24, 2024
Effective for tax periods beginning on or after July 1, 2009,
				  a business which qualifies under the high quality jobs program is eligible to
				  receive tax credits. The high quality jobs program replaces the high quality
				  job creation program. An eligible business under the high quality jobs program
				  must be approved by the Iowa department of economic development and meet the
				  qualifications of Iowa Code section
				  15.329. The tax credits
				  available under the high quality jobs program are based upon the number of jobs
				  created or retained that pay a qualifying wage threshold and the amount of
				  qualifying investment. The administrative rules for the high quality jobs
				  program for the Iowa department of economic development may be found at
				  261-Chapter 68.
For information on the credits that may be taken under this
				  program, how the investment tax credit is computed and other details about the
				  program, see rule 701-52.40 (15). Note: The
				  research credit described in 701-subrule 52.40(1) is not available for
				  franchise tax filers.
This rule is intended to implement Iowa Code chapter
				  15.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 601 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-601.22 - Solar Energy System Tax Credit

Current through Register Vol. 47, No. 3, July 24, 2024
Effective for installations placed in service during tax
				  years beginning on or after January 1, 2014, a solar energy system tax credit
				  is available for business property described in Sections 48(a)(2)(A)(i)(II) and
				  48(a)(2)(A)(i)(III) of the Internal Revenue Code and located in Iowa. The
				  credit is available to financial institutions according to the same
				  requirements, conditions, and limitations as described in rule
				  701-42.48 (422).
This rule is intended to implement Iowa Code section
				  422.60(12)
"a."
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 601 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-601.23 - Workforce Housing Tax Incentives Program

Current through Register Vol. 47, No. 3, July 24, 2024
A business which qualifies under the workforce housing tax
				  incentives program is eligible to receive tax incentives for franchise tax. For
				  information on how the workforce housing tax incentives can be claimed, how the
				  investment tax credit can be transferred and other details about the workforce
				  housing tax incentives, see rule
				  701-52.46 (15). The
				  administrative rules for the workforce housing tax incentives program for the
				  economic development authority may be found at 261-Chapter 48.
This rule is intended to implement Iowa Code sections
				  15.354 and
				  15.355.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 601 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-601.24 - 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 section
				422.60 shall be claimed in the
				following sequence.
a. Alternative minimum tax
				credit (for tax years beginning during 2021 only).
b. Qualifying business investment tax credit
				(also known as angel investor tax credit).
c. Historic preservation tax credit (when the
				taxpayer has elected that the credit be nonrefundable under Iowa Code section
				404A.2(4)).
d. Innovation fund
				investment tax credit.
e. Endow
				Iowa tax credit.
f. Redevelopment
				tax credit.
g. Workforce housing
				tax credit.
h. Hoover presidential
				library tax credit.
i. Enterprise
				zone tax credit.
j. High quality
				jobs investment tax credit.
k. Wind
				energy production tax credit.
l.
				Renewable energy tax credit.
m.
				Solar energy system tax credit.
n.
				Alternative minimum tax credit (for tax years beginning before January 1, 2021,
				only).
o. Historic preservation tax
				credit (when the taxpayer has elected that the credit be refundable under Iowa
				Code section 404A.2(4))
				.
p. High quality jobs third-party
				developer tax credit.
q. Estimated
				payments, payments with vouchers, and composite tax
				credits.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 601 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-601.25 - Hoover Presidential Library Tax Credit

Current through Register Vol. 47, No. 3, July 24, 2024
A Hoover presidential library tax credit is available
				  according to the same requirements, conditions, and limitations as described in
				  rule 701-42.57 (15E,422) and
				  261-Chapter 43.
This rule is intended to implement Iowa Code sections
				  15E.364 and
				  422.60(14)  as
				  enacted by 2021 Iowa Acts, House File 588, sections 1 and 4.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 602 - Determination of Net Income › Rule 701-602.1 - Computation of Net Income for Financial Institutions

Current through Register Vol. 47, No. 3, July 24, 2024
"Net income" for state purposes shall mean federal taxable
				  income, before deduction for net operating losses, as properly computed under
				  the Internal Revenue Code, and shall include the adjustments in rules
				  701-59.2 (422) to
				  701-59.13 (422). The remaining
				  provisions of this rule and rules
				  701-59.14 (422) to
				  701-59.24 (422) shall also be
				  applicable in determining net income.
In the case of a financial institution which is a member of
				  an affiliated group of corporations filing a consolidated income tax return for
				  the taxable year for federal income tax purposes, but files a separate return
				  for state purposes, taxable income as properly computed for federal purposes is
				  determined as if the financial institution had filed a separate return for
				  federal income tax purposes for the taxable year and each preceding taxable
				  year for which it was a member of an affiliated group. For purposes of this
				  paragraph, the taxpayer's separate taxable income shall be determined as if the
				  election provided by Section 243(b)(2) of the Internal Revenue Code had been in
				  effect for all those years.
When a federal short period return is filed and the federal
				  taxable income is required to be adjusted to an annual basis, the Iowa taxable
				  income shall also be adjusted to an annual basis. The tax liability for a short
				  period is computed by multiplying the taxable income for the short period by 12
				  and dividing the result by the number of months in the short period. The tax is
				  determined on the resulting total as if it were the taxable income, and the tax
				  computed is divided by 12 and multiplied by the number of months in the short
				  period. This adjustment shall apply only to income attributable to business
				  carried on within the state of Iowa.
This rule is intended to implement Iowa Code section
				  422.35.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 602 - Determination of Net Income › Rule 701-602.2 - Net Operating Loss Carrybacks and Carryovers

Current through Register Vol. 47, No. 3, July 24, 2024
Net operating losses shall be allowed or allowable for Iowa
				  franchise tax purposes to the same extent they are allowed or allowable for
				  federal corporation income tax purposes, provided the following adjustments are
				  made:
(1) Additions to income.
a. Refunds of federal income taxes due to net
				operating loss, capital loss and investment credit or other credit carrybacks
				shall not be added for tax years beginning on or after January 1,
				1980.
b. Iowa franchise tax
				deducted on the federal return for the loss year shall be reflected as an
				addition to income in the year of the loss.
c. Interest and dividends received in the
				year of the loss on federally tax-exempt securities shall be reflected as
				additions to income in the year of the loss.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 602 - Determination of Net Income › Rule 701-602.3 - Capital Loss Carryback

Current through Register Vol. 47, No. 3, July 24, 2024
Capital losses shall be allowed or allowable for Iowa
				  franchise tax purposes to the same extent they are allowed or allowable for
				  federal corporation income tax purposes. Capital loss carrybacks shall be
				  treated as an adjustment to federal taxable income to arrive at net income. For
				  capital losses occurring in tax years beginning on or after January 1, 1980,
				  refunds of federal corporation income taxes shall not be an adjustment in
				  computing income subject to the franchise tax.
This rule is intended to implement Iowa Code sections
				  422.35 and
				  422.61.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 602 - Determination of Net Income › Rule 701-602.4 - Net Operating and Capital Loss Carrybacks and Carryovers

Current through Register Vol. 47, No. 3, July 24, 2024
If the taxpayer, for tax periods beginning before January 1,
				  2009, has both a net operating loss and a capital loss carryback to a prior tax
				  year, the capital loss shall be carried back first and then the net operating
				  loss offset against any remaining income.
This rule is intended to implement Iowa Code section
				  422.35 as amended by 2009 Iowa
				  Acts, Senate File 483, and section
				  422.61.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VII - Franchise Tax › Chapter 602 - Determination of Net Income › Rule 701-602.5 - Interest and Dividends From Federal Securities

Current through Register Vol. 47, No. 3, July 24, 2024
For franchise tax purposes, dividends received from
				  corporations owned or sponsored by the federal government, or interest derived
				  from obligations of the United States and its possessions, agencies and
				  instrumentalities become a part of the taxable income. Examples of these types
				  of obligations are bonds issued by the governments of Puerto Rico, Washington
				  D.C., Guam and the Virgin Islands. Notwithstanding the above, only interest
				  received after July 1, 1991, from bonds purchased after January 1, 1991, issued
				  by the governments of Puerto Rico, Guam and the Virgin Islands is subject to
				  tax.
Gains or losses from the sale or other disposition of any
				  bonds shall be taxable for state franchise tax purposes.
Interest received on federal tax refunds is taxable for Iowa
				  franchise tax purposes.
This rule is intended to implement Iowa Code section
				  422.61.