reglab/statecodes huggingface dataset:
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 304 - Adjustments to Computed Tax and Tax Credits › Rule 701-304.6 - 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 IV - Individual Income Tax › Chapter 304 - Adjustments to Computed Tax and Tax Credits › Rule 701-304.8 - 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
				  422.16.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 304 - Adjustments to Computed Tax and Tax Credits › Rule 701-304.9 - 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
				  452A.18 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
				  422.110 less any state sales tax
				  as determined by 701-subrule 231.2(2). The credit must be claimed on the tax
				  return covering the tax year in which the motor fuel tax was paid. If the motor
				  fuel credit results in an overpayment of income tax, the overpayment may be
				  refunded or may be credited to income tax due in the subsequent tax
				  year.
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
				  422.110 and
				  422.111.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 304 - Adjustments to Computed Tax and Tax Credits › Rule 701-304.10 - 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
				  422.11B.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 304 - Adjustments to Computed Tax and Tax Credits › Rule 701-304.16 - 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
				  422.5 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
				  422.12 and
				  422.12B 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
				  422.5 reduced by the credits
				  allowed in Iowa Code sections
				  422.12 and
				  422.12B 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
				  422.12 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
				  422.11.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 304 - Adjustments to Computed Tax and Tax Credits › Rule 701-304.25 - 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
				  428.20, may claim the credit
				  equal to the costs incurred during the tax year for the purchase and
				  replacement costs relating to the transition from using nonsoy-based cutting
				  tool oil to using soy-based cutting tool oil.
All of the following conditions must be met to qualify for
				  the tax credit:
1. The costs must be
				incurred after June 30, 2005, and before January 1, 2007.
2. The costs must be incurred in the first 12
				months of the transition from using nonsoy-based cutting tool oil to using
				soy-based cutting tool oil.
3. The
				soy-based cutting tool oil must contain at least 51 percent soy-based
				products.
4. The costs of the
				purchase and replacement must not exceed $2 per gallon of soy-based cutting
				tool oil used in the transition.
5.
				The number of gallons used in the transition cannot exceed 2,000
				gallons.
6. The manufacturer shall
				not deduct for Iowa income tax purposes the costs incurred in the transition to
				using soy-based cutting tool oil which are deductible for federal tax purposes.
Any credit in excess of the taxpayer's tax liability is
				  refundable. In lieu of claiming the refund, the taxpayer may elect to have the
				  overpayment credited to the tax liability for the following tax year.
If a taxpayer is a partnership, limited liability company, S
				  corporation, or an estate or trust electing to have the income taxed directly
				  to an individual, an individual may claim the credit. The amount claimed by an
				  individual must be based on the individual's pro rata share of the individual's
				  earnings of the partnership, limited liability company, S corporation, or
				  estate or trust.
This rule is intended to implement Iowa Code section
				  422.11I.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 304 - Adjustments to Computed Tax and Tax Credits › Rule 701-304.30 - 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
				  15E.232 and
				  422.11K as amended by 2010 Iowa
				  Acts, Senate File 2380.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 304 - Adjustments to Computed Tax and Tax Credits › Rule 701-304.33 - 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
				  214A.2. For purposes of this
				  rule, tank wagon sales are considered retail sales. The credit is calculated on
				  Form IA 135.
(1)
Claiming the
				credit.
a.
Amount of 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 IV - Individual Income Tax › Chapter 304 - Adjustments to Computed Tax and Tax Credits › Rule 701-304.34 - 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 214A.2. In determining the
				  minimum percentage by volume of biodiesel, the department will take into
				  account reasonable variances due to testing and other limitations. For purposes
				  of this rule, tank wagon sales are considered retail sales. The credit is
				  calculated on Form IA 8864.
(1)
Calculating the credit.
a.
Gallonage requirement.
(1)
				Tax years beginning on or after January 1, 2006, but prior to January 1, 2009.
				In order for a retail dealer to qualify for the biodiesel blended fuel tax
				credit for tax years beginning on or after January 1, 2006, but prior to
				January 1, 2009, of the total gallons of diesel fuel that the retail dealer
				sells and dispenses during the tax year, 50 percent or more of those gallons
				must be biodiesel blended fuel formulated with a minimum percentage of 2
				percent by volume of biodiesel. The gallonage amounts for all motor fuel sites
				of a retail dealer are combined when calculating this gallonage
				requirement.
(2) Tax years
				beginning on or after January 1, 2009, but prior to January 1, 2012. For tax
				years beginning on or after January 1, 2009, but prior to January 1, 2012, the
				biodiesel blended fuel tax credit is calculated separately for each retail
				motor fuel site for which 50 percent or more of the total gallons of diesel
				fuel sold at the motor fuel site was biodiesel blended fuel formulated with a
				minimum percentage of 2 percent by volume of biodiesel.
(3) Tax years beginning on or after January
				1, 2012. For tax years beginning on or after January 1, 2012, the requirement
				that 50 percent of all diesel fuel gallons sold be biodiesel gallons to be
				eligible for the tax credit is eliminated. A retail dealer may qualify for the
				biodiesel 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 IV - Individual Income Tax › Chapter 304 - Adjustments to Computed Tax and Tax Credits › Rule 701-304.35 - 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 IV - Individual Income Tax › Chapter 304 - Adjustments to Computed Tax and Tax Credits › Rule 701-304.37 - 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 IV - Individual Income Tax › Chapter 304 - Adjustments to Computed Tax and Tax Credits › Rule 701-304.44 - 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, composite tax credits, and
				withholding tax.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 304 - Adjustments to Computed Tax and Tax Credits › Rule 701-304.45 - 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
				  15.119 as amended by 2014 Iowa
				  Acts, House File 2448.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 304 - Adjustments to Computed Tax and Tax Credits › Rule 701-304.46 - 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
				  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
				701-42.39 (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 IV - Individual Income Tax › Chapter 304 - Adjustments to Computed Tax and Tax Credits › Rule 701-304.47 - 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, but
				  before January 1, 2024, 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, but before January 1, 2024. 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
				304.47(4).
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 304 - Adjustments to Computed Tax and Tax Credits › Rule 701-304.48 - 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 IV - Individual Income Tax › Chapter 304 - Adjustments to Computed Tax and Tax Credits › Rule 701-304.52 - 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 IV - Individual Income Tax › Chapter 304 - Adjustments to Computed Tax and Tax Credits › Rule 701-304.57 - 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 IV - Individual Income Tax › Chapter 305 - Assessments and Refunds › Rule 701-305.1 - 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.
This rule is intended to implement Iowa Code sections
				  422.25 and
				  422.30.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 305 - Assessments and Refunds › Rule 701-305.2 - Notice of Assessment, Supplemental Assessments and Refund Adjustments

Current through Register Vol. 47, No. 3, July 24, 2024
If after following the procedure outlined in 43.1(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 43.1(2) or a
				  jeopardy assessment may be issued. All notices of assessment shall bear the
				  signature of the director.
The department may, at any time within the period prescribed
				  for assessment or refund adjustment, make a supplemental assessment or refund
				  adjustment whenever it is ascertained that any assessment or refund adjustment
				  is imperfect or incomplete in any respect.
If an assessment or refund adjustment is appealed (protested
				  under rule 701-7.8 (17A)) and is resolved
				  whether by informal proceedings or by adjudication, the department and the
				  taxpayer are precluded from making a supplemental assessment or refund
				  adjustment concerning the same issue involved in the appeal for the same tax
				  period unless there is a showing of mathematical or clerical error or a showing
				  of fraud or misrepresentation. Nothing in this rule shall prevent the making of
				  an assessment or refund adjustment for the purpose of taking into account the
				  impact upon Iowa net income of federal audit adjustments.
This rule is intended to implement Iowa Code sections
				  422.25 and
				  422.30.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 305 - Assessments and Refunds › Rule 701-305.4 - Optional Designations of Funds by Taxpayer

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Iowa fish and game protection
				fund.
a. A taxpayer filing an
				individual income tax return may designate a checkoff of $1 or more to be
				donated to the Iowa fish and game protection fund. If the overpayment shown on
				the return or the payment remitted with the return is insufficient to pay the
				amount designated to the Iowa fish and game protection fund, the amount
				credited to the fund will be reduced accordingly. The designation to the fund
				is irrevocable and cannot be made on an amended return.
EXAMPLE A: Overpayment as shown on the return is $50. $25 is
				  designated to the fund. Due to an error on the return, only $20 is an
				  overpayment. The taxpayer would not receive any refund, and all $20 of the
				  overpayment would be credited to the fund.
EXAMPLE B: Overpayment as shown on the return is $50. $25 is
				  designated to the fund. Due to an error on the return, no overpayment occurred,
				  but instead the taxpayer owes $20. No money would be credited to the
				  fund.
EXAMPLE C: Amount shown due on the return is $30. $20 is
				  designated to the fund. A $50 payment was made with the return. Due to an error
				  on the return, the taxpayer owes $40. Only $10 would be credited to the
				  fund.
b. A designation to
				the Iowa fish and game protection fund may be allowed only after the taxpayer's
				obligations to the department of revenue, the child support recovery unit of
				the department of human services, the foster care recovery unit of the
				department of human services, the college student aid commission, the office of
				investigations of the department of human services, the district courts, and
				other state agencies are satisfied.
c. On or before January 31 of the year
				following each year in which returns with the Iowa fish and game protection
				fund checkoff are due, the department of revenue shall certify the amount
				designated to the Iowa fish and game protection fund and report this amount to
				the state treasurer.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 306 - Penalty and Interest › Rule 701-306.1 - Penalty

Current through Register Vol. 47, No. 3, July 24, 2024
See rule
				  701-10.6 (421) for penalty for
				  tax periods beginning on or after January 1, 1991. See rule
				  701-10.8 (421) for statutory
				  exemptions to penalty for tax periods beginning on or after January 1,
				  1991.
This rule is intended to implement Iowa Code sections
				  421.27 and
				  422.25.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 306 - Penalty and Interest › Rule 701-306.2 - Computation of Interest on Unpaid Tax

Current through Register Vol. 47, No. 3, July 24, 2024
Interest shall accrue on tax due from the original due date
				  of the return. Interest on refunds of any portion of the tax imposed by statute
				  which has been erroneously refunded and which is recoverable by the department
				  shall bear interest as provided by law from the date of payment of the refund,
				  with each fraction of a month considered to be an entire month. See rule
				  701-10.2 (421) for the statutory
				  interest rate.
All payments shall be first applied to the penalty and then
				  to the interest, and the balance, if any, to the amount of tax due.
This rule is intended to implement Iowa Code sections
				  421.7 and
				  422.25.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 306 - Penalty and Interest › Rule 701-306.3 - Computation of Interest on Refunds Resulting From Net Operating Losses

Current through Register Vol. 47, No. 3, July 24, 2024
If the amount of tax is reduced as a result of a net
				  operating loss or net capital loss, interest shall accrue on the refund
				  resulting from the loss carryback beginning on the date a claim for refund or
				  amended return carrying back the net operating loss or net capital loss is
				  filed with the department or on the first day of the second calendar month
				  following the date of the actual payment, whichever is later.
This rule is intended to implement Iowa Code section
				  422.25.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 306 - Penalty and Interest › Rule 701-306.4 - Computation of Interest on Overpayments

Current through Register Vol. 47, No. 3, July 24, 2024
If the amount of tax determined to be due by the department
				  is less than the amount paid, the excess to be refunded will accrue interest
				  from the first day of the second calendar month following the date of payment
				  or the date the return was due to be filed or was filed, whichever is the
				  later.
This rule is intended to implement Iowa Code section
				  422.25.
Iowa Administrative Code › Agency 701 - Revenue Department › Title IV - Individual Income Tax › Chapter 307 - Withholding › Rule 701-307.3 - Forms, Returns, and Reports

Current through Register Vol. 47, No. 3, July 24, 2024
(1)
Definitions.
For the purposes of this rule, the following
				definitions apply:
"GovConnectIowa"
means the e-services portal
				  of the department of revenue.
"Income statement"
means a statement that
				  conforms to the requirements of Iowa Code section
				  422.16(7)
"a."
An income statement includes, but is not limited to,
				  Internal Revenue Service (IRS) Form W-2, IRS Form 1099, and IRS Form
				  W-2G.
"Payee"
means an employee or other person
				  who had Iowa income tax withheld pursuant to Iowa Code section
				  422.16.
"Payer"
means an employer or other person
				  required to withhold and remit Iowa income tax pursuant to Iowa Code section
				  422.16.
(2)
Withholding
				registration.
a. Every payer
				required to deduct and withhold Iowa income tax must register with the
				department of revenue by filing an Iowa Business Tax Registration Form either
				on a paper form available online at
tax.iowa.gov
or
				through GovConnectIowa. The form shall indicate the payer's federal employer
				identification number. If a payer has not received a federal employer
				identification number, the payer must notify the department of the payer's
				federal employer identification number once the number has been assigned. If a
				payer fails to provide the payer's federal employer identification number
				within 90 days of the registration filing, the department will consider the
				payer's withholding registration invalid.
b. If a payer deducts and withholds Iowa
				income tax but does not file the Iowa Business Tax Registration Form, the
				department may register the payer using the best information available. If a
				payer uses a service provider to report and remit Iowa withholding tax on
				behalf of the payer, the department may use information obtained from the
				service provider to register the payer if an Iowa Business Tax Registration
				Form is not filed. This information would include, but is not limited to, the
				name, address, federal employer identification number, filing frequency, and
				withholding contact of the payer.