reglab/statecodes huggingface dataset:
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 41 - Determination of Taxable Income › Rule 701-41.6 - Itemized Deductions-separate Returns by Spouses

Current through Register Vol. 47, No. 3, July 24, 2024
Where both spouses itemize deductions, the deductions must be
				  divided between them in the ratio that each spouse's separate Iowa net income
				  bears to the total Iowa net income of both spouses unless each spouse can show
				  that the spouse paid for or is entitled to accrue the deductions. It will be
				  presumed that the deductions are paid by both spouses and must be prorated if
				  the deductions were paid from a joint checking account of both spouses. In any
				  event, all itemized deductions must either be prorated between spouses or must
				  be specifically deducted by the spouse that paid for the deductions. No
				  combinations of the two methods will be permitted.
This rule is intended to implement Iowa Code section
				  4229..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 41 - Determination of Taxable Income › Rule 701-41.7 - Itemized Deductions-part-year Residents

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Rescinded lAB 3/26/08, Effective
				4/30/08.
(2) For tax years
				beginning on or after January 1, 1982, itemized deductions attributable to Iowa
				by part-year residents shall be the itemized deductions allowable for resident
				taxpayers.
This rule is intended to implement Iowa Code sections 422.7,
				  422.8 and 422.9.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 41 - Determination of Taxable Income › Rule 701-41.8 - Itemized Deductions-nonresidents

Current through Register Vol. 47, No. 3, July 24, 2024
(1) Rescinded lAB 3/26/08, Effective
				4/30/08.
(2) For tax years
				beginning on or after January 1, 1982, itemized deductions attributable to Iowa
				by nonresidents shall be the itemized deductions available for resident
				taxpayers.
This rule is intended to implement Iowa Code sections 422.5,
				  422.7 and 422.9.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 41 - Determination of Taxable Income › Rule 701-41.9 - Annualizing Income

Current through Register Vol. 47, No. 3, July 24, 2024
Where a taxpayer is required to annualize income for federal
				  income tax purposes the taxpayer must also annualize on the Iowa return.
This rule is intended to implement Iowa Code section
				  4227..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 41 - Determination of Taxable Income › Rule 701-41.10 - Income Tax Averaging

Current through Register Vol. 47, No. 3, July 24, 2024
There is no provision in the Iowa Code which allows income
				  tax averaging.
This rule is intended to implement Iowa Code sections
				  4227.
				  and
				  4225..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 41 - Determination of Taxable Income › Rule 701-41.12 - Deduction for Home Mortgage Interest for Taxpayers With Mortgage Interest Credit

Current through Register Vol. 47, No. 3, July 24, 2024
For tax years beginning on or after January 1, 1996, any
				  taxpayer who had the mortgage interest credit on the federal return can claim a
				  deduction on the Schedule A of the lA 1040 for all the mortgage interest paid
				  in the tax year, including the mortgage interest that was not deducted on the
				  federal return due to the mortgage interest credit.
This rule is intended to implement Iowa Code sections
				  4223.
				  and
				  4229..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 41 - Determination of Taxable Income › Rule 701-41.13 - Iowa Income Taxes and Iowa Tax Refund

Current through Register Vol. 47, No. 3, July 24, 2024
As provided in subrule 41.5(1), Iowa individual income taxes
				  paid or accrued are allowable itemized deductions for federal income tax
				  purposes, but are not allowable itemized deductions for Iowa income tax
				  purposes. To the extent Iowa income taxes were deducted as itemized deductions
				  for federal tax purposes, they shall be disallowed as an itemized deduction for
				  Iowa income tax purposes.
Refunds of Iowa income taxes to the extent that the refunds
				  were included in the determination of federal adjusted gross income shall be
				  allowed as a reduction to Iowa adjusted gross income, only to the extent that
				  an itemized deduction for Iowa income taxes was disallowed on a prior Iowa
				  return. Iowa income tax refunds resulting from Iowa refundable income tax
				  credits are not allowed as a reduction for Iowa income tax purposes.
EXAMPLE: Individual A made Iowa estimated payments of $2,000
				  during the 2003 tax year. The $2,000 of estimated payments was claimed as an
				  itemized deduction for federal tax purposes, but was not allowed as an itemized
				  deduction for Iowa tax purposes. The 2003 Iowa return reported a tax liability
				  of $1,600. Individual 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. Individual 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
				  4229..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 42 - Adjustments to Computed Tax and Tax Credits › Rule 701-42.1 - School District Surtax

Current through Register Vol. 47, No. 3, July 24, 2024
Iowa law provides for the implementation of an income surtax
				  for increasing local school district budgets. The surtax must be approved by
				  the voters of a school district in a special election or by a resolution of the
				  board of directors of a school district. The surtax rate is determined by the
				  department of management on the basis of the revenue to be raised by the surtax
				  for the particular school district with the surtax.
The school district surtax is imposed on the income tax
				  liabilities of all taxpayers residing in the school district on the last day of
				  the taxpayers' tax years. For purposes of the school district surtax, income
				  tax liability is the tax computed under Iowa Code section
				  4225.,
				  less the nonrefundable credits against computed tax which are authorized in
				  Iowa Code chapter 422, division II.
In a situation where an individual is residing in a school
				  district with a surtax and the individual dies during the tax year, the
				  individual will be considered to be subject to the surtax, since the individual
				  was residing in the school district on the last day of the individual's tax
				  year.
An individual serving in the Armed Forces of the United
				  States who maintains permanent residence in an Iowa school district with a
				  surtax is subject to the surtax regardless of whether the individual is
				  physically residing in the school district on the last day of the tax
				  year.
A person who is present in the school district on the last
				  day of the tax year on a temporary basis due to annual leave or in transit
				  between duty stations is not subject to the surtax.
This rule is intended to implement Iowa Code sections
				  25721.,
				  25729.,
				  and
				  42215..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 42 - Adjustments to Computed Tax and Tax Credits › Rule 701-42.3 - Exemption Credits

Current through Register Vol. 47, No. 3, July 24, 2024
(1) A single
				person shall deduct from the computed tax a personal exemption credit of $40. A
				single person is defined in 701-subrule 39.4(1).
(2) A married person living with husband or
				wife at the close of the taxable year, or living with husband or wife at the
				time of the death of that spouse during the taxable year, shall, if a joint
				return is filed, deduct from the computed tax a personal exemption of $80.
				Where such spouse files a separate return, each spouse is entitled to deduct
				from the computed tax a personal exemption of $40. The personal exemption may
				not be divided between the spouses in any other proportion.
(3) A taxpayer shall deduct from computed tax
				an exemption of $40 for each dependent. "Dependent" has the same meaning as
				provided by the Internal Revenue Code, and the same dependents shall be claimed
				for Iowa income tax purposes as the taxpayer is entitled to claim for federal
				income tax purposes. If each spouse furnished 50 percent of the support, the
				spouses must elect between them which spouse is to be entitled to claim the
				dependent. The dividing of dependent credits applies only to the number of
				dependents and not to the credit amount for a particular dependent.
(4) A head of household as defined in
				701-subrule 39.4(7) is allowed a personal exemption credit of $80.
(5) A taxpayer who is 65 years of age on or
				before the first day following the end of the tax year is allowed an additional
				personal exemption credit of $20 in addition to any other credits allowed by
				this rule.
(6) A taxpayer who is
				blind, as defined in Iowa Code section
				42212(1).
				"e," is allowed a personal exemption credit of $20 in addition to any other
				credits allowed by this rule.
(7) A
				nonresident taxpayer or a part-year resident taxpayer will be allowed to deduct
				personal exemption credits as if the nonresident taxpayer or part-year taxpayer
				was a resident for the entire year.
This rule is intended to implement Iowa Code section
				  422.12.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 42 - Adjustments to Computed Tax and Tax Credits › Rule 701-42.6 - Out-of-state Tax Credits

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Definitions.
For purposes of this rule:
"Foreign country"
means any country, other
				  than the United States, and any political subdivision of that country.
"Income tax"
means any direct tax imposed
				  upon a taxpayer and measured by the taxpayer's income for a specified period of
				  time. The out-of-state jurisdiction's characterization of the tax is not
				  controlling in the department's determination of whether a tax is an income
				  tax. Fees, penalty, and interest paid in connection with an income tax do not
				  qualify. For purposes of this rule, the term "income tax" does not include a
				  minimum tax imposed on preference items.
"Pass-through entity"
means an entity taxed
				  as a partnership for federal tax purposes, an S corporation, an estate, or a
				  trust other than grantor trusts.
"Regulated investment company"
means any
				  domestic corporation that meets the requirements of Section 851 of the Internal
				  Revenue Code and that has made a valid election under Section 853 of the
				  Internal Revenue Code to have its shareholders' pro rata share of entity-level
				  income tax paid by the electing corporation be deemed to have been paid by its
				  shareholders. The term "regulated investment company" includes, but is not
				  limited to, a mutual fund.
"State"
means any state of the United
				  States, the District of Columbia, the Commonwealth of Puerto Rico, any
				  territory or possession of the United States, and any political subdivision
				  thereof.
"Tiered owner"
means an owner or beneficiary
				  of a pass-through entity that is itself a pass-through entity.
(2)
General
				application.
a.
Residents.
Iowa residents, including part-year residents, are
				allowed an out-of-state tax credit against the resident's Iowa income tax
				liability for income taxes owed and paid by the resident to another state or
				foreign country on income for which all of the following are true:
(1) The income was derived from sources
				within the other state or foreign country. In determining whether income is
				derived from sources within that other state or foreign country, Iowa statutes
				and rules on the sourcing of a nonresident's income shall govern.
(2) The income is subject to Iowa income tax.
				Income tax imposed by another state or foreign country on income that is not
				subject to Iowa income tax does not qualify for the credit.
(3) The income was earned while the taxpayer
				was an Iowa resident and is included on the resident's Iowa income tax return.
				The credit is allowable only if the taxpayer files an Iowa income tax return as
				a resident or part-year resident.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 42 - Adjustments to Computed Tax and Tax Credits › Rule 701-42.8 - Withholding and Estimated Tax Credits

Current through Register Vol. 47, No. 3, July 24, 2024
An employee from whose wages tax is withheld shall claim
				  credit for the tax withheld on the employee's income tax return for the year
				  during which the tax was withheld. Credit will be allowed only if a copy of the
				  withholding statement is attached to the return. Taxpayers who have made
				  estimated income tax payments shall claim credit for the estimated tax paid for
				  the taxable year
This rule is intended to implement Iowa Code section
				  42216..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 42 - Adjustments to Computed Tax and Tax Credits › Rule 701-42.9 - Motor Fuel Credit

Current through Register Vol. 47, No. 3, July 24, 2024
An individual, partnership, limited liability company, or S
				  corporation may elect to receive an income tax credit in lieu of the motor fuel
				  tax refund provided by Iowa Code chapter 452A. An individual, partnership,
				  limited liability company, or S corporation which holds a motor fuel tax refund
				  permit under Iowa Code section
				  452A18. 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 motor fuel 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.
The motor fuel tax credits for fuel taxes paid by
				  partnerships, limited liability companies, and S corporations are not claimed
				  on returns filed for the partnerships, limited liability companies, and S
				  corporations. Instead, the pro-rata shares of the motor fuel tax credits are
				  allocated to the partners, members, and shareholders in the same ratio as
				  incomes are allocated to the partners, members, and shareholders. A schedule
				  must be attached to the individual's returns showing the distribution of
				  gallons and the amount of credit claimed by each partner, member, or
				  shareholder
The partnership, limited liability company, or S corporation
				  must attach to its return a schedule showing the allocation to each partner,
				  member, or shareholder of the motor fuel purchased by the partnership, limited
				  liability company, or S corporation which qualifies for the credit.
This rule is intended to implement Iowa Code sections
				  422110.
				  and
				  422111..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 42 - Adjustments to Computed Tax and Tax Credits › Rule 701-42.10 - Alternative Minimum Tax Credit for Minimum Tax Paid in a Prior Tax Year

Current through Register Vol. 47, No. 3, July 24, 2024
Minimum tax paid in prior tax years commencing with tax years
				  beginning on or after January 1, 1987, by a taxpayer can be claimed as a tax
				  credit against the taxpayer's regular income tax liability in a subsequent tax
				  year. Therefore, 1988 is the first tax year that the minimum tax credit is
				  available, and the credit is based on the minimum tax paid by the taxpayer for
				  1987. The minimum tax credit may only be used against regular income tax for a
				  tax year to the extent that the regular tax is greater than the minimum tax for
				  the tax year. If the minimum tax credit is not used against the regular tax for
				  a tax year, the remaining credit is carried over to the following tax year to
				  be applied against the regular income tax liability for that period. The
				  minimum tax credit is computed on Form IA 8801.
(1)
Examples of computation of the
				minimum tax credit and carryover of the credit.
Example 1. The taxpayers reported $5,000 of minimum tax for
				  2007. For 2008, the taxpayers reported regular tax of $8,000, and the minimum
				  tax liability is $6,000. The minimum tax credit is $2,000 for 2008 because,
				  although the taxpayers had an $8,000 regular tax liability, the credit is
				  allowed only to the extent that the regular tax exceeds the minimum tax. Since
				  only $2,000 of the carryover credit from 2007 was used, there is a $3,000
				  minimum tax carryover credit to 2009.
Example 2. The taxpayers reported $2,500 of minimum tax for
				  2007. For 2008, the taxpayers reported regular tax of $8,000, and the minimum
				  tax liability is $5,000. The minimum tax credit is $2,500 for 2008 because,
				  although the regular tax exceeded the minimum tax by $3,000, the credit is
				  allowed only to the extent of minimum tax paid for prior tax years. There is no
				  minimum tax carryover credit to 2009.
(2)
Minimum tax credit for
				nonresidents and part-year residents.
Nonresident and part-year
				resident taxpayers who paid Iowa minimum tax in tax years beginning on or after
				January 1, 1987, are eligible for the minimum tax credit to the extent that the
				minimum tax they paid was attributable to tax preferences and adjustments.
				Therefore, if a nonresident or part-year resident taxpayer had Iowa source tax
				preferences or adjustments, then all the minimum tax that was paid would
				qualify for the minimum tax credit.
The minimum tax credit for a tax year as computed above
				  applies to the regular income tax liability less the nonresident part-year
				  credit to the extent this regular tax amount exceeds the minimum tax for the
				  tax year. To the extent the credit is not used, the credit can be carried over
				  to the next tax year.
This rule is intended to implement Iowa Code section
				  4221.
				  IB.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 42 - Adjustments to Computed Tax and Tax Credits › Rule 701-42.16 - Franchise Tax Credit

Current through Register Vol. 47, No. 3, July 24, 2024
For tax years beginning on or after January 1, 1997, 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.
For tax years beginning on or after July 1, 2004, a member of
				  a financial institution organized as a limited liability company that is taxed
				  as a partnership for federal income tax purposes which has elected to have its
				  income taxed directly to its members may take a tax credit equal to the
				  member'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
				  4225.
				  by reducing the shareholder's or member's taxable income by the shareholder's
				  or member's pro-rata share of the items of income and expenses of the financial
				  institution and subtracting the credits allowed in Iowa Code sections
				  42212.
				  and
				  42212B.
				  for tax years beginning prior to January 1, 2007. The recomputed tax must be
				  subtracted from the amount of tax computed under Iowa Code section
				  4225.
				  reduced by the credits allowed in Iowa Code sections
				  42212.
				  and
				  42212B.
				  for tax years beginning prior to January 1, 2007. For tax years beginning on or
				  after January 1, 2007, only the credits allowed in Iowa Code section
				  42212.
				  are reduced in computing the franchise tax credit.
The resulting amount, not to exceed the shareholder's or
				  member's pro-rata share of the franchise tax paid by the financial institution,
				  is the amount of tax credit allowed the shareholder or member
This rule is intended to implement Iowa Code section
				  42211..
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 42 - Adjustments to Computed Tax and Tax Credits › Rule 701-42.25 - 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
				  422.111.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 42 - Adjustments to Computed Tax and Tax Credits › Rule 701-42.30 - 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 tax 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 tax 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 422.UK as amended by 2010 Iowa Acts, Senate File 2380.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 42 - Adjustments to Computed Tax and Tax Credits › Rule 701-42.33 - 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 the 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 701-42.20(422) for gallons
				sold prior to January 1, 2009, or the ethanol promotion tax credit provided in
				rule 701-42.39(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 2008 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
				2008. 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 2008 tax year.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 42 - Adjustments to Computed Tax and Tax Credits › Rule 701-42.34 - 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 blended fuel tax credit even if the number of 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 42 - Adjustments to Computed Tax and Tax Credits › Rule 701-42.35 - 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 42 - Adjustments to Computed Tax and Tax Credits › Rule 701-42.37 - 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 individual
				  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 42 - Adjustments to Computed Tax and Tax Credits › Rule 701-42.44 - 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
				422.5,
				422.8,
				422.10
				through
				422.12C,
				422.12N, and
				422.110
				shall be claimed in the following sequence:
a. Personal exemption credit.
b. Tuition and textbook credit.
c. Volunteer fire fighter, volunteer
				emergency medical services personnel and reserve peace officer tax credit.
d. Nonresident and part-year
				resident credit.
e. Out-of-state
				tax credit.
f. Franchise tax
				credit.
g. S corporation
				apportionment credit.
h.
				Alternative minimum tax credit (for tax years beginning during 2023
				only).
i. Historic preservation tax
				credit (when the taxpayer has elected that the credit be nonrefundable under
				Iowa Code section
				404A.2(4)
				).
j. School tuition organization
				tax credit.
k. Innovation fund
				investment tax credit.
l. Endow
				Iowa tax credit.
m. Redevelopment
				tax credit.
n. From farm to food
				donation tax credit.
o. Workforce
				housing tax credit.
p. Hoover
				presidential library tax credit.
q.
				Enterprise zone investment tax credit.
r. High quality jobs investment tax
				credit.
s. Wind energy production
				tax credit.
t. Renewable energy tax
				credit.
u. New jobs tax
				credit.
v. Beginning farmer tax
				credit.
w. Agricultural assets
				transfer tax credit.
x. Custom
				farming contract tax credit.
y.
				Geothermal heat pump tax credit.
z.
				Solar energy system tax credit.
aa.
				Charitable conservation contribution tax credit.
ab. Alternative minimum tax credit (for tax
				years beginning before January 1, 2023).
ac. Historic preservation tax credit (when
				the taxpayer has elected that the credit be refundable under Iowa Code section
				404A.2(4)).
ad. High quality jobs
				third-party developer tax credit.
ae. Research activities credit.
af. Child and dependent care tax credit or
				early childhood development tax credit.
ag. Motor fuel tax credit.
ah. Claim of right credit (if elected in
				accordance with rule 701-38.18 (422)).
ai. Qualifying business investment tax credit
				(also known as angel investor tax credit).
aj. Adoption tax credit.
ak. E-85 gasoline promotion tax
				credit.
al. Biodiesel blended fuel
				tax credit.
am. E-15 plus gasoline
				promotion tax credit.
an. Earned
				income tax credit.
ao. Renewable
				chemical production tax credit.
ap.
				Estimated payments, payment with vouchers, and withholding tax.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 42 - Adjustments to Computed Tax and Tax Credits › Rule 701-42.45 - 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 42 - Adjustments to Computed Tax and Tax Credits › Rule 701-42.46 - 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 701-42.39(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 42 - Adjustments to Computed Tax and Tax Credits › Rule 701-42.47 - Geothermal Heat Pump Tax Credit

Current through Register Vol. 47, No. 3, July 24, 2024
For tax years beginning on or after January 1, 2019, a
				  geothermal heat pump tax credit is available for residential property located
				  in Iowa as provided in Iowa Code section
				  422.12N
				  and this rule. Information relating to Iowa geothermal tax credits available
				  for tax years prior to January 1, 2019, can be found in prior versions of this
				  rule. Prior versions of the Iowa Administrative Code are located here:
www.legis.iowa.gov/law/administrativeRules/agencies
.
(1)
Eligibility for the
				credit.
To be eligible for the credit described in this rule, all of
				the following requirements must be met:
a.
				The geothermal heat pump must be eligible for the federal residential energy
				efficient property tax credit provided in Section 25D(a)(5) of the Internal
				Revenue Code.
b. The taxpayer must
				claim the federal residential energy efficient property tax credit provided in
				Section 25D(a)(5) of the Internal Revenue Code.
c. The geothermal heat pump must be installed
				on residential property located in Iowa and placed in service on or after
				January 1, 2019. In determining whether this requirement is met, the term
				"placed in service" has the same meaning as used in Section 25D of the Internal
				Revenue Code.
d. The taxpayer must
				submit a timely and complete application to the department in accordance with
				subrule 42.47(4).
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 42 - Adjustments to Computed Tax and Tax Credits › Rule 701-42.48 - Solar Energy System Tax Credit

Current through Register Vol. 47, No. 3, July 24, 2024
A solar energy system tax credit is available for both
				  residential property and business property located in Iowa as provided in Iowa
				  Code section
				  422.11L
				  and this rule.
(1)
Relationship between the Iowa and federal credits.
a. The Iowa credit is a percentage of the
				applicable federal credit. Taxpayers who apply for the Iowa credit must also
				qualify for and claim the corresponding federal credit. Availability of the
				Iowa credit for a specific type of installation in a given year is dependent
				upon availability of the federal credit for that type of
				installation.
b. The Iowa credit
				conforms with the Internal Revenue Code as amended to and including January 1,
				2016. The term "Internal Revenue Code" as used in this rule refers to the
				Internal Revenue Code as it existed on January 1, 2016. See Iowa Code section
				422.11L(6); see also Public Law No. 114-113, Div. P, Title III, §§
				302, 303, 304, and Div. Q, Title I, § 187.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 42 - Adjustments to Computed Tax and Tax Credits › Rule 701-42.52 - Adoption Tax Credit

Current through Register Vol. 47, No. 3, July 24, 2024
Effective for tax years beginning on or after January 1,
				  2014, an adoption tax credit is available for individual income tax equal to
				  the amount of qualified adoption expenses paid or incurred by a taxpayer
				  related to the adoption of a child. For an adoption finalized on or after
				  January 1, 2014, but before January 1, 2017, the total adoption tax credit
				  claimed for the adoption may not exceed $2,500. For an adoption finalized on or
				  after January 1, 2017, the total adoption tax credit claimed for the adoption
				  may not exceed $5,000.
(1)
Adoption.
For purposes of the credit, an adoption occurs when
				a child is permanently placed in Iowa by any of the following:
a. The department of human
				services;
b. An adoption service
				provider as defined in Iowa Code section
				600A.2; or
c. An agency that meets the provisions of the
				interstate compact in Iowa Code section
				232.158.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 42 - Adjustments to Computed Tax and Tax Credits › Rule 701-42.57 - Hoover Presidential Library Tax Credit

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
In general.
a. A taxpayer who makes an unconditional
				charitable donation to the Hoover presidential foundation for the Hoover
				presidential library and museum renovation project fund may qualify for a
				Hoover presidential library tax credit, subject to the availability of the
				credit and approval by the economic development authority.
b. The credit is equal to 25 percent of a
				donor's unconditional charitable donation that meets both of the following
				requirements:
(1) The donation is made on or
				after July 1, 2021.
(2) The
				donation is made during a donor's tax year beginning on or after January 1,
				2021, but before January 1, 2024.
c. The amount of the donation for which the
				tax credit is claimed is not deductible in determining taxable income for Iowa
				tax purposes.
d. The administrative
				rules for the economic development authority's administration of this program
				are found in 261-Chapter 43 and describe the tax credit program cap limitations
				including reserved amounts, donor cap limitations, the application process and
				waitlist, and other requirements.
Iowa Administrative Code › Agency 701 - Revenue Department › Title I - Administration › Chapter 43 - Assessments and Refunds › Rule 701-43.1 - Notice of Discrepancies

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Notice of adjustments.
A department employee 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 this discovery by ordinary mail. The notice shall not be
				termed an assessment, and it may inform the taxpayer what amount would be 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 a 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 agent, auditor, clerk or 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.
(3) Rescinded, effective 7/24/85.
This rule is intended to implement Iowa Code sections 422.25
				  and 422.30.