66. OTHER REFUNDABLE CREDITS. Enter
the total of other credits from Part II of the IA 148 Tax Credits Schedule.
IA
148 Tax Credits Schedule (pdf) must be completed.
Assistive Device Credit:
A taxpayer who is a small
business that purchases, rents, or modifies an assistive device or
makes workplace modifications for an individual with a disability is
eligible for this credit. The credit is limited to 50% of the first
$5,000 paid for the assistive device or workplace modification. The
Iowa Department of Economic Development certifies those eligible for
the credit and issues tax credit certificates for eligible claimants.
This is a refundable credit.
This credit was repealed
effective on July 1, 2009, for individual income tax, but is still
available for corporation income tax.
422.11E & 422.33(9)
Biodiesel
Blended Fuel Tax Credit:
This is not a motor fuel tax credit or refund. It is an income tax credit. Attach a copy of form IA 8864 to your Iowa income tax return.
A biodiesel blended fuel
tax credit is available to retail dealers of diesel fuel who operate
motor fuel pumps at a retail motor fuel site. Tank wagons are considered
retail motor fuel sites.
Beginning January 1, 2009,
this credit must be calculated separately for each retail motor fuel
site operated by the taxpayer. To qualify for the tax credit, 50%
or more of the gallons of diesel fuel sold by the dealer through
motor fuel pumps at that retail motor fuel site in Iowa must be biodiesel
fuel containing a minimum percentage of 2% by volume of biodiesel.
The tax credit equals 3 cents multiplied by the total number of gallons of biodiesel blended fuel gallons sold during the retail dealer's tax year.
Any credit in excess of
the tax liability may be refunded or, in the alternative, credited
to the tax liability for the following year. If the biodiesel blended
fuel tax credit is earned by partnerships, limited liability companies,
S corporations, estates, or trusts where income is taxed directly
to the individual, the credit can be claimed by the individual based
on the pro rata share of the individual's earnings in the entity.
422.11P and 422.33(11C)
Claim
of Right Credit:
A credit may be taken if
there was income repaid in the 2009 tax year that was reported and
taxed on a prior Iowa return. To calculate the credit, recompute
the tax in the prior year without the repaid income. Enter the tax
reduction that was calculated as a credit on this line. However,
it may be to your advantage to take an income adjustment on line
24. You may take either the credit on this line or a deduction
of the amount repaid on line 24, but not both.
Example of Claim
of Right Credit: A taxpayer received a $5,000 bonus in 2007 and reported
it on the 2007 Iowa return. In 2009 the taxpayer’s
employer advised that the bonus was awarded in error and was to be
repaid. The bonus was repaid by the end of 2009. After recomputing
the 2007 Iowa return, there is a $440 reduction in tax. The taxpayer
may claim a credit of $440 on line 66 of the 2009 Iowa return.
422.5(10)
E85
Gasoline Promotion Tax Credit:
This is not a motor fuel tax credit or refund. It is an income tax credit. Attach a copy of form IA 135 to your Iowa income tax return.
An income tax credit is available to retail dealers of gasoline who sell E85 gasoline through motor fuel pumps during the tax year.
Any
credit in excess of the tax liability is refundable. The credit can
be claimed on form IA 135.
The amount of the credit is determined by multiplying the total number of E85 gallons sold by the following rate:
- Calendar years 2006, 2007 and 2008: 25 cents
- Calendar years 2009 and 2010: 20 cents
- Calendar year 2011: 10 cents
- Calendar year 2012: 9 cents
- Calendar year 2013: 8 cents
- Calendar year 2014: 7 cents
- Calendar year 2015: 6 cents
- Calendar year 2016: 5 cents
- Calendar year 2017: 4 cents
- Calendar year 2018: 3 cents
- Calendar year 2019: 2 cents
- Calendar year 2020: 1 cent
- Calendar year 2021 and subsequent : 0 cents
Retail dealers of gasoline
whose tax year is not on a calendar year basis may compute the tax
credit on the gallons of E85 gallons sold during the year using the
applicable credit amounts as shown above. A retail dealer of gasoline
whose tax year ends prior to December 31, 2020, can continue to claim
the tax credit in the following tax year for any E85 gallons sold
through December 31, 2020.
A retail dealer whose
tax year is not on a calendar year basis and who did not claim the
E85 credit on the previous return may claim the credit
for the current tax year for the period beginning on January 1 of
the previous tax year to the last day of the previous tax year. This
section is repealed on January 1, 2021.
Any credit in excess of
the tax liability may be refunded or, in the alternative, credited
to the tax liability for the following year. If the E85 gasoline
promotion tax credit is earned by partnerships, limited liability
companies, S corporations, estates, or trusts where income is taxed
directly to the individual, the credit can be claimed by the individual
based on the pro rata share of the individual's earnings in the entity.
422.11O and 422.33(11B)
Ethanol Promotion Tax Credit:
Effective January 1, 2009,
an ethanol promotion tax credit is available to retail dealers of
ethanol blended gasoline. This replaces the ethanol
blended gasoline tax credit.
The amount of the tax credit
is based on the pure amount of ethanol gallons sold; for example,
10 gallons of E10 equals 1 gallon of pure ethanol. The credit is
repealed on January 1, 2021.
The amount of the tax credit
depends on whether the retail dealer attains a biofuel threshold
standard, and how many gallons of motor fuel are sold in a year.
The biofuel threshold standards for retail dealers who sell more
than 200,000 gallons in a year, compared with the biofuel threshold
standards for dealers who sell 200,000 gallons or less in a year,
are shown below:
| Calendar Year |
Percentage more than
200,000 |
Percentage 200,000
or less |
| 2009 |
10% |
6% |
| 2010 |
11% |
6% |
| 2011 |
12% |
10% |
| 2012 |
13% |
11% |
| 2013 |
14% |
12% |
| 2014 |
15% |
13% |
| 2015 |
17% |
14% |
| 2016 |
19% |
15% |
| 2017 |
21% |
17% |
| 2018 |
23% |
19% |
| 2019 |
25% |
21% |
| 2020 |
25% |
25% |
The credit is calculated separately
for each retail motor fuel site. For any year in which the retail dealer
has met the threshold, the credit is
6 ½ cents of each gallon
of pure ethanol sold. If the retail dealer misses the threshold by
2% or less, the credit is 4 ½ cents
of each gallon of pure ethanol sold. If the retail dealer misses the
threshold by more than 2% but not more than 4%, the
credit is 2 ½ cents of each gallon of pure ethanol sold. If the
retail dealer misses the threshold by 4% or more, then no credit
is allowed.
The retail dealer determines
the biofuel percentage by summing the pure ethanol gallons and the
pure biodiesel gallons sold during the calendar year, and dividing
this sum by the total gasoline gallons sold during the calendar year.
While the biodiesel gallons are included in the computation of the
biofuel percentage to determine if the threshold is met, only the pure
ethanol gallons sold are used in determining the amount of the credit.
Example: A retail
dealer only operates one motor fuel site. The number of gallons of
gasoline sold at this site in 2009 equals 100,000 gallons. This consisted
of 5,000 gallons of E85, 80,000 gallons of E10, and 15,000 gallons
not containing ethanol. The dealer also sold 15,000 gallons of diesel
fuel at this site during 2009, of which 5,000 gallons was B2 (2%
biodiesel). The pure ethanol gallons is 12,250 (5,000 x 85% =
4,250. 80,000 x 10% = 8,000. 4,250 + 8,000 = 12,250).
The pure biodiesel gallons sold is 100, or 5,000 x 2%. The total
of 12,250 and 100, or 12,350, is divided by the total gasoline gallons
sold of 100,000 to arrive at a biofuel percentage of 12.35%. Since
this exceeds the 6% threshold for a dealer selling less than 200,000
gallons, the credit is 6 ½ cents x 12,250, or $796.
A retail
dealer of gasoline will be able to claim the ethanol promotion tax
credit even if the dealer claims an E85 gasoline promotion tax credit
for the same tax year for the same ethanol gallons sold. For retail
dealers of gasoline whose tax year is not on a calendar year basis,
the retail dealer may compute the tax credit on the gallons of pure
ethanol sold during the year using the applicable credit amounts
as shown above. Any credit in excess of the tax liability is refundable.
This credit is claimed on form IA 137 (pdf).
422.11N and 422.33(11A)
Historic
Preservation and Cultural and Entertainment District Tax Credit:
A historic preservation
and cultural and entertainment district tax credit is available for
25% of the qualified costs of rehabilitation of eligible property
in Iowa. This credit is administered by the state historic preservation
office of the Iowa Department of Cultural Affairs.
Any credit in excess of
the tax liability is fully refundable and not discounted.
The historic preservation
and cultural and entertainment district tax credit can be transferred
to any person or entity.
Effective July 1, 2009: The
amount of aggregate tax credits is $50 million starting with the
fiscal year beginning July 1, 2009, and subsequent fiscal years.
The total of $50 million of tax credits available in a fiscal year
are allocated as follows:
- $5 million for
projects with final qualified rehabilitation costs of $500,000 or
less
- $15 million for
projects located in cultural and entertainment districts or projects
identified in Iowa great places agreements
- $10 million for
disaster recovery projects
- $10 million for
projects that involve the creation of more than 500 permanent jobs
- $10 million for
any other eligible project
For projects that involve the creation of more than 500 permanent
jobs, the jobs must be created within two years of the date the tax
credit certificate is issued. The credit is subject to recapture by
the Department of Revenue if the jobs are not created within two years.
For credits reserved prior to July 1, 2009, the project must be completed
by June 30, 2011, to remain eligible for the tax credit. For credits
reserved on or after July 1, 2009, the project must be completed within
36 months of the date on which the project application was approved.
This information is based on rule 701-42.15 .
422.11D, 422.33(10), 422.60(4) and 404A.2
Investment
Tax Credits (IA
3468)
(value-added agricultural projects or biotechnology-related processes)
Eligible businesses involved in the production of value-added agricultural products or biotechnology-related processes may elect to refund all or a portion of the unused credit by applying for a tax credit certificate from the Department of Economic Development. The credit amount shown on the tax credit certificate may be claimed on line 66.
For a more detailed description of this credit, see line 53.
Research
Activities Credit:
IA 128 or IA 128A
Starting in 1985, a credit became available for 6.5% of Iowa's apportioned
share of qualifying expenditures for increasing research activities.
The Iowa research credit is based on the federal research activities
credit, with the Iowa credit based on the ratio of Iowa research expenditures
over total research expenditures.
Staring in 2000, taxpayers
may choose to take the alternative incremental research credit in
a manner consistent with the federal alternative incremental research
credit. This credit is claimed on form IA 128A. A taxpayer may choose
each year whether to take the alternative credit or the "regular" research
credit for Iowa tax purposes.
Taxpayers who are approved
by the Iowa Department of Economic Development under the New Jobs
and Income Program or the Enterprise Zone program can double their
research credit claimed on either form IA 128 or IA 128A. The research
credit can also be doubled under the High Quality Jobs Program
for taxpayers approved by the Department of Economic Development
if certain criteria is met.
Iowa has not coupled with
the "New Alternative Simplified Research
Credit" which can be elected at the federal level.
Sections 422.10 and 422.33(5) and 15.335 and 15A.9(8)
Wage-Benefit
Tax Credit
For new jobs created on or after June 9, 2005, a wage-benefit tax credit is available to non-retail, non-services businesses which create new jobs related to the location or expansion of a business in Iowa. This will affect tax years ending on or after June 9, 2006. If the annual wage and benefits equals at least 130% of the average county wage, but less than 160%, the tax credit equals 5% of the wages and benefits paid. If the annual wage and benefits is 160% or greater of the average county wage, the tax credit equals 10% of the wages and benefits paid.
Businesses must apply to
the Iowa Department of Revenue for this credit, and the amount of
credit is limited to $4 million for 2009. The credits are issued
on a "first-come, first-serve" basis. If the business retains
the job, the tax credit will be allowed for the subsequent four years.
Any tax credit in excess of the tax liability can be refunded.
Sections 422.11L, 422.33(18) and 422.60(10)
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