reglab/statecodes huggingface dataset:
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 50 - Apportionment of Income for Resident Shareholders of S Corporations › Rule 701-50.7 - Credit for Taxes Paid to Another State

Current through Register Vol. 47, No. 3, July 24, 2024
If a taxpayer elects to take advantage of the apportionment
				  provisions for a resident shareholder of an S corporation, then the taxpayer
				  may not take a credit against Iowa income tax for income taxes or taxes
				  measured by income paid to another state or foreign country on the S
				  corporation income. A taxpayer may claim a credit against Iowa income tax for
				  income taxes or taxes measured by income paid to another state or foreign
				  country on income other than S corporation income that may be earned in the tax
				  year.
This rule is intended to implement Iowa Code section
				  4228..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 51 - Administration › Rule 701-51.3 - Retention of Records

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Every
				corporationsubject to the tax imposed by Iowa Code section
				42233.
				(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
				42225..
This rule is intended to implement Iowa Code sections 422.25
				  and 422.70.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 51 - Administration › Rule 701-51.4 - Cancellation of Authority to Do Business

Current through Register Vol. 47, No. 3, July 24, 2024
If a corporation required by Iowa Code section
				  42240.
				  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
				  42240..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 51 - Administration › Rule 701-51.5 - 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
				  42235..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 51 - Administration › Rule 701-51.6 - 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 I - Administration › Chapter 51 - Administration › Rule 701-51.7 - Information Confidential

Current through Register Vol. 47, No. 3, July 24, 2024
Iowa Code sections
				  42220.
				  and
				  42272.
				  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
				  701-63.
				  (17A).
This rule is intended to implement Iowa Code sections
				  42220.,
				  42238.,
				  and
				  42272..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 51 - Administration › Rule 701-51.9 - 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
				  42271..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 51 - Administration › Rule 701-51.10 - 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 I - Administration › Chapter 52 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-52.2 - 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 I - Administration › Chapter 52 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-52.4 - 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)
Full estimated payment on original due date.
Rescinded lAB
				3/15/95, effective 4/19/95.
(3)
Penalty and interest on unpaid tax.
See rule
				701-106. (421) for
				penalty for tax periods beginning on or after January 1, 1991. See rule
				701-108. (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 I - Administration › Chapter 52 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-52.6 - 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
				  422110.
				  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
				  42233..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 52 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-52.10 - 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
				  15333. and
				  an additional research activities credit under Iowa Code section
				  15335.
				  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
				  701-5228.
				  (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
				15329..
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
				427A1..
				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
				  15332..
				  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
				  15332.
				  has been eliminated.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 52 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-52.11 - Refunds and Overpayments

Current through Register Vol. 47, No. 3, July 24, 2024
(1) to (6)
				Reserved.
(7)
computation
				of interest on refunds resultingfrom net operating losses or net capital losses
				for tax years or periods beginning on or after January 1, 1974.
Rescinded lAB 11/24/04, effective 12/29/04.
(8)
computation of interest on
				refunds resulting from net operating losses or net capital losses for tax years
				or periods beginning on or after January 1, 1974, and ending on or after July
				1,
1980.
Rescinded lAB 11/24/04, effective
				12/29/04.
(9)
computation
				of interest on refunds resultingfrom net operating losses or net capital losses
				for tax years ending on or after April 30, 1981.
Rescinded lAB
				11/24/04, effective 12/29/04.
(10)
For refund claims received by the department after June 11,
				1984.
Ifthe 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)
Overpayment
-
interest accruing before July 1, 1980.
Rescinded lAB
				11/24/04, effective 12/29/04.
(12)
Interest commencing on or after January 1, 1982.
See rule
				701-102. (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.
(13)
Overpayment
-
interest accruing on or after July 1,
				1980, and before April 30,
1981.
Rescinded lAB
				11/24/04, effective 12/29/04.
(14)
Overpayment
-
interest accruing on overpayments
				resultingfrom returns due on or after April 30, 1981.
Ifthe 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 I - Administration › Chapter 52 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-52.12 - 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 refundable under 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 tax and payment with vouchers.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 52 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-52.13 - 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
				  701-438.
				  (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 I - Administration › Chapter 52 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-52.14 - 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
				  15E193.. 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
				  701-5210.
				  (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 I - Administration › Chapter 52 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-52.16 - 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
				  42233.
				  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
				  42233..
				  The recomputed tax must be subtracted from the amount of tax computed under
				  Iowa Code section
				  42233.
				  reduced by the credits allowed in Iowa Code section
				  42233..
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
				  42233.,
				  as amended by 1999 Iowa Acts, chapter 95.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 52 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-52.24 - 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
				  42820., 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 I - Administration › Chapter 52 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-52.29 - 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
				  15E232.
				  and
				  42233.
				  as amended by 2010 Iowa Acts, Senate File 2380.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 52 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-52.30 - 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
				  214A2.. 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 I - Administration › Chapter 52 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-52.31 - 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
				  214A2.. 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.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 52 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-52.32 - Soy-based Transformer Fluid Tax Credit

Current through Register Vol. 47, No. 3, July 24, 2024
Effective for tax periods ending after June 30, 2006, and
				  beginning before January 1, 2009, an electric utility may claim a soy-based
				  transformer fluid tax credit. An electric utility, which is a public utility,
				  city utility, or electric cooperative which furnishes electricity, may claim a
				  credit equal to the costs incurred during the tax year for the purchase and
				  replacement costs relating to the transition from using nonsoy-based
				  transformer fluid to using soy-based transformer fluid.
(1)
Eligibility requirements for the
				tax credit.
All of the following conditions must be met for the
				electric utility to qualify for the soy-based transformer fluid tax credit.
a. The costs must be incurred after June 30,
				2006, and before January 1, 2009.
b. The costs must be incurred in the first 18
				months of the transition from using nonsoy-based transformer fluid to using
				soy-based transformer fluid.
c. The
				soy-based transformer fluid must be dielectric fluid that contains at least 98
				percent soy-based products.
d. The
				costs of the purchase and replacement must not exceed $2 per gallon of
				soy-based transformer fluid used in the transition.
e. The number of gallons used in the
				transition must not exceed 20,000 gallons per electric utility, and the total
				number of gallons eligible for the credit must not exceed 60,000 gallons in the
				aggregate.
f.The electric utility
				shall not deduct for Iowa income tax purposes the costs incurred in the
				transition to using soy-based transformer fluid which are deductible for
				federal income tax purposes.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 52 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-52.34 - 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, a film qualified expenditure tax credit is available for corporation
				  income tax. The tax credit cannot exceed 25 percent of the taxpayer's qualified
				  expenditures in a film, television, or video project registered with the film
				  office of the Iowa department of economic development (IDED). The film office
				  may negotiate the amount of the tax credit. The administrative rules for the
				  film qualified expenditure tax credit for IDED may be found at 261-Chapter
				  36.
(1)
Qualified
				expenditures. A
qualified expenditure is a payment to an Iowa resident
				or an Iowa-based business for the sale, rental or furnishing of tangible
				personal property or services directly related to the registered project. The
				qualified expenditures include, but are not limited to, the following:
1. Aircraft.
2. Vehicles.
3. Equipment.
4. Materials.
5. Supplies.
6. Accounting services.
7. Animals and animal care
				services.
8. Artistic and design
				services.
9. Graphics.
10. Construction.
11. Data and information services.
12. Delivery and pickup services.
13. Labor and personnel. For limitations on
				the amount of labor and personnel expenditures, see Iowa department of economic
				development 261-paragraph 36.7(2)
"b. "
14. Lighting services.
15. Makeup and hairdressing
				services.
16. Film.
17. Music.
18. Photography.
19. Sound.
20. Video and related services.
21. Printing.
22. Research.
23. Site fees and rental.
24. Travel related to Iowa distant
				locations.
25. Trash removal and
				cleanup.
26. Wardrobe.
A detailed list of all qualified expenditures for each of
				  these categories is available from the film office of IDED.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 52 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-52.38 - School Tuition Organization Tax Credit

Current through Register Vol. 47, No. 3, July 24, 2024
For tax years beginning prior to January 1, 2021, a school
				  tuition organization tax credit is available which is equal to 65 percent of
				  the amount of the voluntary cash or noncash contribution made by a corporation
				  taxpayer to a school tuition organization. For tax years beginning on or after
				  January 1, 2021, the tax credit is equal to 75 percent of the amount of the
				  voluntary cash or noncash contribution made by a corporation taxpayer to a
				  school tuition organization. For S corporations, partnerships, limited
				  liability companies, estates and trusts where the income is taxed directly to
				  the individual shareholders, partners, members or beneficiaries, an individual
				  may claim the credit. The amount of credit claimed by an individual shall be
				  based on the pro rata share of the individual's earnings of the S corporation,
				  partnership, limited liability company, estate or trust. For information on the
				  initial registration, participation forms and reporting requirements for school
				  tuition organizations, see rule
				  701-42.32 (422).
(1)
Amount of tax credit
				authorized-additional limitation for corporations.
a. Of the $7.5 million of school tuition
				organization tax credits authorized for the 2009 through 2011 calendar years,
				no more than 25 percent, or $1,875,000, can be authorized for corporation
				income tax taxpayers.
b. Of the
				$8.75 million of school tuition organization tax credits authorized for 2012
				and 2013, no more than 25 percent, or $2,187,500, can be authorized for
				corporation income tax taxpayers.
c. Of the $12 million of school tuition
				organization tax credits authorized for 2014 through 2018, no more than 25
				percent, or $3 million, can be authorized for corporation income tax
				taxpayers.
d. Of the $13 million of
				school tuition organization tax credits authorized for 2019, no more than 25
				percent, or $3,250,000, can be authorized for corporation income tax
				taxpayers.
e. Effective July 1,
				2020, the prohibition against authorizing more than 25 percent of the total
				authorized tax credits for corporation income tax purposes was repealed. On or
				after July 1, 2020, of the total school tuition organization tax credits
				authorized for a year, any amount can be authorized for corporation income
				taxpayers.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 52 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-52.41 - Aggregate Tax Credit Limit for Certain Economic Development Programs

Current through Register Vol. 47, No. 3, July 24, 2024
Effective for the fiscal year beginning July 1, 2009, awards
				  made under certain economic development programs cannot exceed $185 million
				  during a fiscal year. Effective for fiscal years beginning on or after July 1,
				  2010, but beginning before July 1, 2012, awards made under these economic
				  development programs cannot exceed $120 million during a fiscal year. Effective
				  for fiscal years beginning on or after July 1, 2012, awards made under these
				  economic development programs cannot exceed $170 million. For fiscal years
				  beginning on or after July 1, 2010, but beginning before July 1, 2014, these
				  programs include the assistive device tax credit program, the enterprise zone
				  program, the housing enterprise zone program, the high quality jobs program,
				  the redevelopment tax credit program, tax credits for investments in qualifying
				  businesses and community-based seed capital funds, and the innovation fund tax
				  credit program. For fiscal years beginning on or after July 1, 2014, these
				  programs include the assistive device tax credit program, the workforce housing
				  tax incentives program, the high quality jobs program, the redevelopment tax
				  credit program, tax credits for investments in qualifying businesses and
				  community-based seed capital funds, and the innovation fund tax credit program.
				  The administrative rules for the aggregate tax credit limit for the economic
				  development authority may be found at 261-Chapter 76.
This rule is intended to implement Iowa Code section
				  15119.
				  as amended by 2014 Iowa Acts, House File 2448.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 52 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-52.43 - E-15 Plus Gasoline Promotion Tax Credit

Current through Register Vol. 47, No. 3, July 24, 2024
Effective for eligible gallons sold on or after July 1,2011,
				  a retail dealer of gasoline may claim an E-15 plus gasoline promotion tax
				  credit. "E-15 plus gasoline" means ethanol blended gasoline formulated with a
				  minimum percentage of between 15 percent and 69 percent of volume of ethanol,
				  if the formulation meets the standards provided in Iowa Code section
				  214A2.. For
				  purposes of this rule, tank wagon sales are considered retail sales. The credit
				  is calculated on Form IA 138.
(1)
Calculating the credit.
a.
Amount of credit.
The tax credit is calculated by multiplying
				the total number of E-15 plus gallons sold by the retail dealer during the tax
				year by the following designated rates:
Gallons sold from July 1, 2011, through December 31,
							 2013
3 cents
Gallons sold from January 1 through May 31 and from
							 September 16 through December 31 for the 2014-2024 calendar years
3 cents
Gallons sold from June 1 through September 15 for the
							 2014-2024 calendar years
10 cents
b.
Claiming the credit with other credits.
A taxpayer may claim
				the E-15 plus gasoline promotion tax credit even if the taxpayer also claims
				the ethanol promotion tax credit provided in rule 701-52.36(422) for gallons
				sold on or after January 1, 2011, 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.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 52 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-52.44 - Solar Energy System Tax Credit

Current through Register Vol. 47, No. 3, July 24, 2024
For tax years beginning on or after January 1, 2012, 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 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
				  422.33.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 52 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-52.50 - 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
				  422.33(31)
				   as enacted by 2021 Iowa Acts, House File
				  588, sections 1 and 3.