reglab/statecodes huggingface dataset:
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 501 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-501.32 - 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 VI - Corporation Income Tax › Chapter 501 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-501.34 - 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 VI - Corporation Income Tax › Chapter 501 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-501.38 - 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 VI - Corporation Income Tax › Chapter 501 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-501.41 - 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
				  15.119 as amended by 2014 Iowa
				  Acts, House File 2448.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 501 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-501.43 - 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
				  214A.2. 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 VI - Corporation Income Tax › Chapter 501 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-501.44 - 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 VI - Corporation Income Tax › Chapter 501 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-501.45 - From Farm to Food Donation Tax Credit

Current through Register Vol. 47, No. 3, July 24, 2024
A taxpayer that donates a food commodity that the taxpayer
				  produces may claim a tax credit against Iowa corporation income tax according
				  to the same requirements, conditions, and limitations as described in rule
				  701-304.51 (422).
This rule is intended to implement Iowa Code chapter 190B,
				  subchapter I, and section
				  422.33.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 501 - Filing Returns, Payment of Tax, Penalty and Interest, and Tax Credits › Rule 701-501.50 - 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.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 502 - Determination of Net Income › Rule 701-502.1 - Computation of Net Income for Corporations

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
				  701-53.2 (422) to
				  701-53.13 (422) and
				  701-53.17 (422) to
				  701-53.26 (422). The remaining
				  provisions of this rule and
				  701-53.14 (422) to
				  701-53.16 (422) shall also be
				  applicable in determining net income.
In the case of a corporation 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 corporation 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 VI - Corporation Income Tax › Chapter 502 - Determination of Net Income › Rule 701-502.2 - Net Operating Loss Carrybacks and Carryovers

Current through Register Vol. 47, No. 3, July 24, 2024
In years beginning after December 31, 1954, net operating
				  losses shall be allowed or allowable for Iowa corporation income tax purposes
				  to the same extent they are allowed or allowable for federal corporation income
				  tax purposes for the same period, provided the following adjustments are
				  made:
(1)
Additions to
				income.
a. Refunds of federal income
				taxes due to net operating loss and credit carrybacks shall be reflected in the
				following manner:
(1) Accrual basis taxpayers
				shall accrue refunds of federal income taxes to the year in which the net
				operating loss or excess credit occurs. The federal refund shall still accrue
				for tax periods beginning on or after January 1, 2009, even though the Iowa net
				operating loss carryback is not allowed.
(2) Cash basis taxpayers shall reflect
				refunds of federal income taxes in the return for the year in which the refunds
				are received. The federal refund due to any net operating loss carryback for
				federal income tax purposes for tax years beginning on or after January 1,
				2009, must still be reflected even though the Iowa net operating loss carryback
				is not allowed.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 502 - Determination of Net Income › Rule 701-502.3 - Capital Loss Carryback

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
				Capital losses shall be allowed or allowable for Iowa corporation income 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 allocable and
				apportionable income.
a. For accrual-basis
				taxpayers the federal income tax refund shall not be accrued to the loss year
				but rather treated as a reduction in federal income tax paid in the carryback
				year.
b. Cash-basis taxpayers shall
				include the federal income tax refund in Iowa taxable income in the year
				received.
c. Where the taxpayer
				files a separate Iowa corporation income tax return but files as part of a
				federal consolidated income tax return, the portion of the federal refund due
				to a capital loss carryback attributable to the taxpayer shall be calculated by
				computing the federal tax deduction in the carryback year as follows:
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Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 502 - Determination of Net Income › Rule 701-502.4 - 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 prior to 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 new
				  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.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 502 - Determination of Net Income › Rule 701-502.5 - Interest and Dividends From Federal Securities

Current through Register Vol. 47, No. 3, July 24, 2024
See rule
				  701-40.2 (422) for a discussion
				  of the exempt status of interest and dividends from federal securities.
This rule is intended to implement Iowa Code section
				  422.35.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 502 - Determination of Net Income › Rule 701-502.6 - Interest and Dividends From Foreign Securities, and Securities of State and Their Political Subdivisions

Current through Register Vol. 47, No. 3, July 24, 2024
Interest and dividends from foreign securities and from
				  securities of state and their political subdivisions are to be included in Iowa
				  taxable income. Certain types of interest and dividends, because of specific
				  exemption, are not includable in income for federal tax purposes. To the extent
				  such income has been excluded for federal income tax purposes, unless the item
				  of income is specifically exempted from state taxation by the laws or
				  constitution of Iowa or of the United States, it must be added to Iowa taxable
				  income. See rule 701-40.3 (422) for a listing of
				  obligations of the state of Iowa and its political subdivisions, the interest
				  from which is exempt from Iowa corporation income tax. For the tax treatment of
				  interest or dividends from regulated investment companies (mutual funds) that
				  invest in obligations of the type discussed in rule
				  701-40.3 (422), see rule
				  701-40.52 (422).
For tax years beginning on or after January 1, 1987, add
				  dividends received from regulated investment companies exempt from federal tax
				  under Section 852(b)(5) of the Internal Revenue Code and subtract the loss on
				  the sale or exchange of a share of a regulated investment company held for six
				  months or less to the extent the loss was disallowed under Section 852(b)(4)(B)
				  of the Internal Revenue Code.
For tax years beginning on or after January 1, 2001, add, to
				  the extent not already included, income from the sale of obligations of the
				  state of Iowa and its political subdivisions. Gains or losses from the sale or
				  other disposition of bonds issued by the state of Iowa or its political
				  subdivisions shall be included in Iowa taxable income unless the law
				  authorizing these obligations specifically exempts the income from the sale or
				  other disposition from Iowa corporation income tax.
This rule is intended to implement Iowa Code section
				  422.35 as amended by 2001 Iowa
				  Acts, House File 715.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 502 - Determination of Net Income › Rule 701-502.7 - Safe Harbor Leases

Current through Register Vol. 47, No. 3, July 24, 2024
For tax years ending after January 1, 1981, deductions in
				  determining federal taxable income for sale-leaseback agreements taken as a
				  result of the application of Section 168(f)(8) of the Internal Revenue Code
				  shall be added in determining Iowa taxable income to the extent such deductions
				  cannot be taken under provisions of Sections 162, 163 and 167 of the Internal
				  Revenue Code. The lessor shall add depreciation and interest expense, and the
				  lessee shall add rental expense. When the deduction for depreciation is not
				  allowed under a previous provision of this rule, the lessee shall be allowed a
				  deduction for depreciation on any property involved in a sale-leaseback
				  agreement. This depreciation shall be computed in accordance with Section
				  168(a) of the Internal Revenue Code. Income received as a result of a
				  sale-leaseback agreement shall be deducted in determining Iowa taxable income.
				  The lessee shall deduct interest income and the lessor shall deduct rent
				  income. Each lessor and lessee corporation shall include a copy of federal Form
				  6793 in its Iowa corporation income tax return for the year in which a safe
				  harbor lease is entered into.
This rule is intended to implement Iowa Code section
				  422.35.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 502 - Determination of Net Income › Rule 701-502.8 - Additions to Federal Taxable Income

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Reserved.
(2)
Percentage depletion.
For tax years beginning on or after January 1, 1986, add the amount that
				percentage depletion of an oil, gas, or geothermal well computed under Section
				613 of the Internal Revenue Code is in excess of cost depletion computed under
				Section 611 of the Internal Revenue Code.
(3)
Charitable contributions relating
				to the charitable conservation contribution tax credit.
For tax years
				beginning on or after January 1, 2008, a taxpayer who claims a charitable
				conservation contribution tax credit in accordance with rule
				701-52.37 (422) cannot claim a
				deduction for charitable contributions under Section 170 of the Internal
				Revenue Code for the amount of the contribution for which the tax credit is
				claimed for Iowa tax purposes.
(4)
Charitable contributions relating to school tuition
				organizations.
For tax years beginning on or after July 1, 2009, a
				taxpayer who claims a school tuition organization tax credit in accordance with
				rule 701-52.38 (422) cannot claim a
				deduction for charitable contributions under Section 170 of the Internal
				Revenue Code for the amount of the contribution to the school tuition
				organization for which the tax credit is claimed for Iowa tax
				purposes.
(5)
Charitable
				contributions relating to the endow Iowa tax credit.
For tax years
				beginning on or after January 1, 2010, a taxpayer who claims an endow Iowa tax
				credit in accordance with rule 701-52.23(15E,422) cannot claim a deduction for
				charitable contributions under Section 170 of the Internal Revenue Code for the
				amount of the contribution for which the tax credit is claimed for Iowa tax
				purposes.
(6)
Charitable
				contributions related to the from farm to food donation tax credit.
For tax years beginning on or after January 1, 2014, a taxpayer who claims a
				from farm to food donation tax credit in accordance with rule
				701-52.45 (422,85GA,SF452)
				cannot claim a deduction for charitable contributions under Section 170 of the
				Internal Revenue Code for the amount of the contribution for which the tax
				credit is claimed for Iowa tax purposes.
This rule is intended to implement Iowa Code section
				  422.35 and 2013 Iowa Acts,
				  Senate File 452.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 502 - Determination of Net Income › Rule 701-502.9 - Gains and Losses on Property Acquired Before January 1, 1934

Current through Register Vol. 47, No. 3, July 24, 2024
Where property was acquired prior to January 1, 1934, the
				  basis as of January 1, 1934, for determining capital or other gains or losses
				  is the higher of cost, adjusted for depreciation allowed or allowable to
				  January 1, 1934, or fair market value as of that date.
City National
				  Bank of Clinton v. Iowa State Tax Commission,
251 Iowa 603, 102 N.W.2d
				  381 (1960).
If as a result of this provision a basis is to be used for
				  purposes of Iowa corporation income tax which is different from the basis used
				  for purposes of federal income tax, appropriate adjustment must be made and
				  detailed schedules supplied in the computation of Iowa taxable income.
This rule is intended to implement Iowa Code section
				  422.35.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 502 - Determination of Net Income › Rule 701-502.10 - Work Opportunity Tax Credit and Alcohol and Cellulosic Biofuel Fuels Credit

Current through Register Vol. 47, No. 3, July 24, 2024
Where provided for in the Internal Revenue Code, as detailed
				  below, a deduction shall be allowed for the amount of credit to the extent that
				  the credit increased federal taxable income.
(1) For tax years beginning on or after
				January 1, 1977, the amount of credit allowable for federal work opportunity
				tax credit as provided for in Section 51 of the Internal Revenue Code shall be
				a deduction from Iowa taxable income to the extent the credit increased
				income.
(2) For tax periods
				beginning on or after January 1, 1980, the amount of credit allowable for the
				federal alcohol and cellulosic biofuel fuels credit as provided for in Section
				40 of the Internal Revenue Code shall be a deduction from Iowa taxable income
				to the extent the credit increased income.
This rule is intended to implement 2011 Iowa Code Supplement
				  section 422.35 as amended by 2012 Iowa
				  Acts, Senate File 2328.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 502 - Determination of Net Income › Rule 701-502.13 - Iowa Income Taxes and Iowa Tax Refund

Current through Register Vol. 47, No. 3, July 24, 2024
Iowa corporation income taxes paid or accrued during the tax
				  year as may be applicable under the method of filing are permissible deductions
				  for federal corporation income tax purposes, but are not permissible deductions
				  for purposes of determining Iowa net taxable income. To the extent taxes were
				  deducted in the determination of federal taxable income, they shall be added to
				  federal taxable income for Iowa corporation income tax purposes. Refunds of
				  Iowa income tax to the extent that the refunds were included in the
				  determination of federal taxable income shall be subtracted from federal
				  taxable income, only to the extent that a deduction for Iowa income taxes was
				  disallowed on a prior Iowa return. Iowa income tax refunds resulting from Iowa
				  refundable tax credits are not allowed as a deduction for Iowa corporation
				  income tax purposes.
EXAMPLE: Corporation A reports income on a cash basis and
				  made Iowa estimated payments of $2,000 during the 2003 tax year. The $2,000 of
				  estimated payments was claimed as a deduction for federal income tax purposes,
				  but was not allowed as a deduction for Iowa tax purposes. The 2003 Iowa return
				  reported a tax liability of $1,600. Corporation A had $2,000 of Iowa estimated
				  payments and a $500 ethanol blended gasoline tax credit, and received a $900
				  Iowa tax refund in 2004. Of the $900 refund reported as income on the federal
				  return, Corporation A will be allowed a $400 ($2,000 - $1,600) reduction on the
				  Iowa return for 2004.
This rule is intended to implement Iowa Code section
				  422.35.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 502 - Determination of Net Income › Rule 701-502.14 - Method of Accounting, Accounting Period

Current through Register Vol. 47, No. 3, July 24, 2024
The return shall be computed on the same basis and for the
				  same accounting period as the taxpayer's return for federal corporation income
				  tax purposes. Permission to change accounting methods or accounting periods for
				  corporation tax purposes is not required provided the taxpayer furnishes the
				  department with a copy of the federal consent.
This rule is intended to implement Iowa Code section
				  422.35.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 502 - Determination of Net Income › Rule 701-502.16 - Federal Rulings and Regulations

Current through Register Vol. 47, No. 3, July 24, 2024
In determining whether "taxable income," "net operating loss
				  deduction" or any other deductions are computed for federal tax purposes under,
				  or have the same meaning as provided by, the Internal Revenue Code, the
				  department will use applicable rulings and regulations that have been duly
				  promulgated by the Commissioner of Internal Revenue, unless the director has
				  created rules and regulations or has exercised discretionary powers as
				  prescribed by statute which call for an alternative method for determining
				  "taxable income," "net operating loss deduction," or any other deductions, or
				  unless the department finds that an applicable Internal Revenue ruling or
				  regulation is unauthorized according to the Iowa Code.
This rule is intended to implement Iowa Code section
				  422.35.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 502 - Determination of Net Income › Rule 701-502.17 - Depreciation of Speculative Shell Buildings

Current through Register Vol. 47, No. 3, July 24, 2024
(1) For tax years beginning on or after July
				1, 1992, speculative shell buildings constructed or reconstructed after that
				date may be depreciated as 15-year property under the accelerated cost recovery
				system of the Internal Revenue Code. If the taxpayer has deducted depreciation
				on the speculative shell building on the taxpayer's federal income tax return,
				that amount of depreciation must be added to the federal taxable income in
				order to deduct depreciation under this rule.
(2) On sale or other disposition of the
				speculative shell building, the taxpayer must report on the taxpayer's Iowa
				corporation income tax return the same gain or loss reported on the taxpayer's
				federal corporation income tax return. If, while owned by the taxpayer, the
				building is converted from a speculative shell building to another use, the
				taxpayer must deduct the same amount of depreciation on the taxpayer's Iowa tax
				return as is deducted on the taxpayer's federal tax return.
(3) For the purposes of this rule, the term
				"speculative shell building" means a building as defined in Iowa Code section
				427.1, subsection
				(27)
"c."
This rule is intended to implement Iowa Code section
				  422.35.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 502 - Determination of Net Income › Rule 701-502.18 - Deduction of Multipurpose Vehicle Registration Fee

Current through Register Vol. 47, No. 3, July 24, 2024
For tax years beginning on or after January 1, 1992, and
				  before January 1, 2005, corporations may claim a deduction for 60 percent of
				  the amount of the registration fee paid for a multipurpose vehicle under Iowa
				  Code section 321.124, subsection 3, paragraph
"h."
In order to qualify for this deduction, no part of the
				  multipurpose vehicle registration fee may have been deducted as an ordinary and
				  necessary business expense.
For tax years beginning on or after January 1, 2005, the
				  deduction for Iowa corporation income tax for multipurpose vehicle registration
				  fees is the same as allowed under Section 164 of the Internal Revenue Code for
				  federal tax purposes.
This rule is intended to implement Iowa Code section
				  422.35.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 502 - Determination of Net Income › Rule 701-502.19 - Deduction of Foreign Dividends

Current through Register Vol. 47, No. 3, July 24, 2024
For tax years beginning on or after January 1, 1992,
				  corporations may claim a deduction based on percentage of ownership as set
				  forth in Section 243 of the Internal Revenue Code for foreign dividends
				  including Subpart F income as defined in Section 952 of the Internal Revenue
				  Code. See
Kraft General Foods, Inc. v. Iowa Department of Revenue and
				  Finance
, 505 U.S.
				  71,
				  120 L.Ed 59, 112 S.Ct. 2365
				  (1992).
This rule is intended to implement Iowa Code section
				  422.35.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 502 - Determination of Net Income › Rule 701-502.20 - Employer Social Security Credit for Tips

Current through Register Vol. 47, No. 3, July 24, 2024
Employers in the food and beverage industry are allowed a
				  credit under Section 45B of the Internal Revenue Code for a portion of the
				  social security taxes paid or incurred after 1993 on employee tips. The credit
				  is equal to the employer's FICA obligation attributable to tips received which
				  exceed tips treated as wages for purposes of satisfying minimum wage standards
				  of the Fair Labor Standards Act. The credit is allowed only for tips received
				  by an employee in the course of employment from customers on the premises of a
				  business for which the tipping of employees serving food or beverages is
				  customary. To the extent that an employer takes the credit for a portion of the
				  social security taxes paid or incurred, the employer's deduction for the social
				  security tax is reduced accordingly. For Iowa income tax purposes, the full
				  deduction for the social security tax paid or incurred is allowed for tax years
				  beginning on or after January 1, 1994. No social security tax credit is allowed
				  on the Iowa corporation income tax return.
This rule is intended to implement Iowa Code section
				  422.35 as amended by 1995 Iowa
				  Acts, chapter 152.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 502 - Determination of Net Income › Rule 701-502.21 - Deductions Related to the Iowa Educational Savings Plan Trust

Current through Register Vol. 47, No. 3, July 24, 2024
For tax years beginning on or after January 1, 2016, certain
				  qualifying organizations may establish Iowa education savings plan trust
				  accounts as participants, as described in Iowa Code chapter 12D. Taxpayers may
				  make contributions to such qualifying organizations so that the organization
				  can deposit the contribution into the organization's Iowa education savings
				  plan trust account. However, for Iowa income tax purposes, a taxpayer must add
				  back any portion of the federal charitable contribution deduction allowed for a
				  contribution to a qualifying organization, to the extent that the taxpayer
				  designated that any part of such contribution be used for the direct benefit of
				  a dependent of a shareholder or for the benefit of any other specific person
				  chosen by the taxpayer.
This rule is intended to implement Iowa Code section
				  422.35 as amended by 2016 Iowa
				  Acts, chapter 1107.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 502 - Determination of Net Income › Rule 701-502.26 - Exclusion of Biodiesel Production Refund

Current through Register Vol. 47, No. 3, July 24, 2024
A taxpayer may exclude, to the extent included in federal
				  taxable income, the amount of the biodiesel production refund described in rule
				  701-250.1 (423).
This rule is intended to implement Iowa Code section
				  422.35.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 502 - Determination of Net Income › Rule 701-502.28 - Broadband Infrastructure Grant Exemption

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Broadband infrastructure grant
				exemption, generally.
For tax years beginning on or after January 1,
				2019, certain qualifying communications service providers may subtract, to the
				extent included in income, the amount of qualifying government grants used to
				install broadband infrastructure that facilitates broadband service in targeted
				service areas at or above download and upload speeds identified by the Federal
				Communications Commission pursuant to Section 706 of the federal
				Telecommunications Act of 1996, as amended. This rule explains terms not
				defined in Iowa Code section
				422.35.
(2)
Definitions.
"Facilitate"
shall have the same meaning as
				  defined in Iowa Code section
				  8B.1.
"Grant"
means a transfer for a governmental
				  purpose of money or property to a transferee that is not a related party to or
				  an agent of the transferor. The transfer must not impose any obligation or
				  condition to directly or indirectly repay any amount to the transferor or a
				  related party. Obligations or conditions intended solely to assure expenditure
				  of the transferred moneys in accordance with the governmental purpose of the
				  transfer do not prevent a transfer from being a grant.
1. "Federal grant" means any grant issued by
				the United States government, including any agency or instrumentality
				thereof.
2. "State grant" means any
				grant issued by any state of the United States, the District of Columbia, or a
				territory or possession of the United States, including any agency or
				instrumentality thereof.
3. "Local
				grant" means any grant issued by any city, county, township, school district,
				or any other unit of local government, including any agency or instrumentality
				thereof.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 503 - Allocation and Apportionment › Rule 701-503.4 - Net Gains and Losses From the Sale of Assets

Current through Register Vol. 47, No. 3, July 24, 2024
For purposes of administration of this rule, a capital gain
				  or loss shall mean the sale price or value at the time of disposal of an asset
				  less the adjusted basis, whether reportable as short-term or long-term capital
				  gain or ordinary income for federal income tax purposes.
Nonbusiness gain or loss from the sale, exchange or other
				  disposition of property if the property while owned by the taxpayer was not
				  operationally related to the taxpayer's trade or business carried on in Iowa
				  shall be allocated as follows:
(1)
				Gains or losses from the sale, exchange or other disposition of real property
				located in this state are allocable to this state.
(2) Gains and losses from the sale, exchange
				or other disposition of tangible personal property are allocable to this state
				if:
a. The property had a situs in this state
				at the time of sale; or
b. The
				taxpayer's commercial domicile is in this state and the taxpayer is not taxable
				in the state in which the property had a situs.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 503 - Allocation and Apportionment › Rule 701-503.7 - Apportionment of Income of Transportation, Communications, and Certain Public Utilities Corporations

Current through Register Vol. 47, No. 3, July 24, 2024
Net income of these corporations, other than interest,
				  dividends, rents and royalties, which is not specifically allocated by
				  54.2(422) and 54.6(422) shall be apportioned as follows:
(1) Railroads shall determine their Iowa
				proportion of gross receipts or gross revenue from railroad operations by the
				following methodology:
a. Freight revenue.
				Freight revenue within and without Iowa shall be determined for each individual
				freight movement by taking the proportion of car and locomotive miles traveled
				in Iowa to total car and locomotive miles traveled within and without Iowa for
				the individual freight movement and applying such individual percentage to the
				gross receipts derived from the individual freight movement. Empty mileage that
				does not produce gross receipts shall not be used.
b. Passenger revenue. Passenger revenue
				within and without Iowa shall be determined by use of the same principles
				applicable to freight revenue.
c.
				Switching revenue. Unless the switching revenue is accounted for in the freight
				revenue or passenger revenue categories, it shall be determined in accordance
				with subrule 54.6(1).
d.
				Miscellaneous revenue. Nonexclusive examples of miscellaneous revenues include
				demurrage revenue, station services revenue, storage revenue, railway property
				rental, joint facility revenue, and amounts received from government
				authorities. These revenues shall be attributed to the state in which they were
				earned.
e. All of the above classes
				of revenues shall be aggregated and combined with other gross receipts or gross
				revenues from sources within Iowa to compose the numerator. The denominator
				shall be computed in accordance with 701-subrule 54.2(2).
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 503 - Allocation and Apportionment › Rule 701-503.8 - Apportionment of Income Derived From More Than One Business Activity Carried on Within a Single Corporate Structure

Current through Register Vol. 47, No. 3, July 24, 2024
Net income from corporations where more than one business
				  activity is conducted within a single unitary corporate structure shall be
				  apportioned by combining gross receipts or gross revenues of each business
				  activity in the business activity ratio. Where necessary, formulas authorized
				  by the department's rules or statute shall be used to ascertain the gross
				  receipts from such business activities.
EXAMPLE: The taxpayer is engaged in the business of both
				  manufacture of tangible personal property and trucking. During the tax year,
				  the taxpayer received $1,000,000 in gross receipts, $400,000 of which was from
				  its manufacturing operations and $600,000 of which was from its trucking
				  operations. In its trucking operations, the taxpayer traveled 100,000 miles in
				  Iowa and 400,000 everywhere, and in its manufacturing operations, $300,000 of
				  sales were attributable to this state. The numerator of the business activity
				  ratio would be $450,000, which includes $300,000 from manufacturing operations
				  and $150,000 (100,000/400,000 x 600,000 = 150,000) from trucking operations.
				  See subrule 54.7(2). The denominator of the business activity ratio would be
				  $1,000,000.
This rule is intended to implement Iowa Code section
				  422.33.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 504 - Assessments, Refunds, Appeals › Rule 701-504.1 - Notice of Discrepancies

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Notice of adjustment.
An employee of the department,
				designated by the director to examine returns and make audits, who discovers
				discrepancies in returns or learns that the income of the taxpayer may not have
				been listed, in whole or in part, or that no return was filed when one was due,
				is authorized to notify the taxpayer of the discovery by ordinary mail. The
				notice shall not be termed an assessment, and it may inform the taxpayer of the
				amount due if the information discovered is correct.
(2)
Right of taxpayer upon receipt of
				notice of adjustment.
A taxpayer who has received notice of an
				adjustment in connection with a return may pay the additional amount stated to
				be due. If payment is made, and the taxpayer wishes to contest the matter, the
				taxpayer should then file claim for refund. However, payment will not be
				required until assessment has been made (although interest will continue to
				accrue if payment is not made). If no payment is made, the taxpayer may discuss
				with the employee who notified the taxpayer of the discrepancy, either in
				person or through correspondence, all matters of fact and law which the
				taxpayer considers relevant to the situation. Documents and records supporting
				the taxpayer's position may be required.
This rule is intended to implement Iowa Code section
				  422.25.
Iowa Administrative Code › Agency 701 - Revenue Department › Title VI - Corporation Income Tax › Chapter 504 - Assessments, Refunds, Appeals › Rule 701-504.2 - Notice of Assessment

Current through Register Vol. 47, No. 3, July 24, 2024
If after following the procedure outlined in 55.1(2) no
				  agreement is reached, and the taxpayer does not pay the amount determined to be
				  correct, a notice of assessment shall be sent to the taxpayer by mail. If the
				  period in which the correct amount of tax can be determined is nearly at an
				  end, either a notice of assessment, without compliance with 55.1(1) and
				  55.1(2), or a jeopardy assessment may be issued. All notices of assessment
				  shall contain the signature of the director.
This rule is intended to implement Iowa Code sections
				  422.25 and
				  422.28.