§ 422.33 — Corporate tax imposed — credit

Iowa § 422.33

• Jurisdiction: Iowa
• Title X: FINANCIAL RESOURCES
• Ch. 422: INDIVIDUAL INCOME, CORPORATE, AND FRANCHISE TAXES

Text

1. a. A tax is imposed annually upon each corporation doing business in this state, or
deriving income from sources within this state, in an amount computed by applying the
following rates of taxation to the net income received by the corporation during the income
year:
(1) On the first twenty-five thousand dollars of taxable income, or any part thereof, the
rate of six percent for tax years beginning prior to January 1, 2021, and the rate of five and
one-half percent for tax years beginning on or after January 1, 2021.
(2) On taxable income between twenty-five thousand dollars and one hundred thousand
dollars or any part thereof, the rate of eight percent for tax years beginning prior to January
1, 2021, and the rate of five and one-half percent for tax years beginning on or after January
1, 2021.
(3) On taxable income between one hundred thousand dollars and two hundred fifty
thousand dollars or any part thereof, the rate of ten percent for tax years beginning prior
to January 1, 2021, and the rate of nine percent for tax years beginning on or after January
1, 2021.
(4) On taxable income of two hundred fifty thousand dollars or more, the rate of twelve
percent for tax years beginning prior to January 1, 2021, and the rate of nine and eight-tenths
percent for tax years beginning on or after January 1, 2021.
b. (1) (a) Notwithstanding paragraph “a”, the department of management and the
department of revenue shall determine corporate income tax rates as provided in this
paragraph. A tax rate in this subsection shall remain in effect until the tax rate is adjusted
pursuant to this paragraph.
(b) By November 1, 2022, and by November 1 each year thereafter, the department
of management shall determine the net corporate income tax receipts for the fiscal year
preceding the determination date. If net corporate income tax receipts for the preceding
fiscal year exceed seven hundred million dollars, the department of revenue shall adjust and
apply new corporate income tax rates as provided in subparagraph (2).
(2) (a) If a determination has been made that net corporate income tax receipts for the
preceding fiscal year exceeded seven hundred million dollars, the department of revenue
shall adjust the tax rates specified in paragraph “a”, subparagraphs (3) and (4), and apply
the adjusted rates for tax years beginning on or after the next January 1 following the
determination date.
(b) (i) The tax rates subject to adjustment shall be adjusted in such a way that when
combined with all the other rates specified in paragraph “a”, the tax rates would have
generated net corporate income tax receipts that equal seven hundred million dollars in the
preceding fiscal year.
(ii) When adjusting the tax rates, the tax rates shall be adjusted as follows:
(A) The tax rate in effect that corresponds with the specified tax rate in paragraph “a”,
subparagraph (4), shall first be adjusted but not below the tax rate in effect that corresponds
with the specified rate in paragraph “a”, subparagraph (3).
(B) If after the adjustment in subparagraph part (A) is made, and an additional
adjustment is necessary, the tax rates that correspond with the rates specified in paragraph
“a”, subparagraphs (3) and (4), shall be adjusted on an equal basis.
(iii) The tax rates adjusted pursuant to this paragraph shall not be adjusted below five and
one-half percent.
(iv) The tax rates, when adjusted, shall be rounded down to the nearest one-tenth of one
percent.
(3) If a tax rate is adjusted pursuant to this paragraph, the director of revenue shall
cause an advisory notice containing the new corporate tax rates to be published in the
Iowa administrative bulletin and on the internet site of the department of revenue. The
calculation and publication of the adjusted tax rate by the director of revenue is exempt
from chapter 17A, and shall be submitted for publication by the first December 31 following
the determination date to adjust the tax rates.
1A. There is imposed upon each corporation exempt from the general business tax on
corporationsbysection422.34, subsection2, ataxattheratesinsubsection1uponthestate’s

apportionedsharecomputedinaccordancewithsubsections2and3oftheunrelatedbusiness
income computed in accordance with the Internal Revenue Code and with the adjustments
set forth in section 422.35.
2. a. If the trade or business of the corporation is carried on entirely within the state,
the tax shall be imposed on the entire net income, but if the trade or business is carried on
partly within and partly without the state or if income is derived from sources partly within
and partly without the state, or if income is derived from trade or business and sources, all
of which are not entirely in the state, the tax shall be imposed only on the portion of the net
income reasonably attributable to the trade or business or sources within the state, with the
net income attributable to the state to be determined as follows:
(1) Nonbusiness interest, dividends, rents and royalties, less related expenses, shall be
allocated within and without the state in the following manner:
(a) Nonbusiness interest, dividends, and royalties from patents and copyrights shall be
allocable to this state if the taxpayer’s commercial domicile is in this state.
(b) Nonbusiness rents and royalties received from real property located in this state are
allocable to this state.
(c) Nonbusinessrentsandroyaltiesreceivedfromtangiblepersonalpropertyareallocable
to this state to the extent that the property is utilized in this state; or in their entirety if the
taxpayer’s commercial domicile is in this state and the taxpayer is not taxable in the state
in which the property is utilized. The extent of utilization of tangible personal property in
a state is determined by multiplying the rents and royalties by a fraction, the numerator of
which is the number of days of physical location of the property in the state during the rental
or royalty period in the taxable year and the denominator of which is the number of days of
physicallocationofthepropertyeverywhereduringallrentalorroyaltyperiodsinthetaxable
year. If the physical location of the property during the rental or royalty period is unknown
or unascertainable by the taxpayer, tangible personal property is utilized in the state in which
the property was located at the time the rental or royalty payor obtained possession.
(d) Nonbusiness capital gains and losses from the sale or other disposition of assets shall
be allocated as follows:
(i) Gains and losses from the sale or other disposition of real property located in this state
are allocable to this state.
(ii) Gains and losses from the sale or other disposition of tangible personal property
are allocable to this state if the property had a situs in this state at the time of the sale or
disposition or if the taxpayer’s commercial domicile is in this state and the taxpayer is not
taxable in the state in which the property had a situs.
(iii) Gains and losses from the sale or disposition of intangible personal property are
allocable to this state if the taxpayer’s commercial domicile is in this state.
(2) Net nonbusiness income of the above class having been separately allocated and
deducted as above provided, the remaining net business income of the taxpayer shall be
allocated and apportioned as follows:
(a) Business interest, dividends, rents, and royalties shall be reasonably apportioned
within and without the state under rules adopted by the director.
(b) Capital gains and losses from the sale or other disposition of assets shall be
apportioned to the state based upon the business activity ratio applicable to the year the gain
or loss is determined if the corporation determines Iowa taxable income by a sales, gross
receipts or other business activity ratio. If the corporation has only allocable income, capital
gains and losses from the sale or other disposition of assets shall be allocated in accordance
with subparagraph (1), subparagraph division (d).
(c) Where income is derived from business other than the manufacture or sale of tangible
personal property, the income shall be specifically allocated or equitably apportioned within
and without the state under rules of the director.
(d) Where income is derived from the manufacture or sale of tangible personal property,
the part attributable to business within the state shall be in that proportion which the gross
sales made within the state bear to the total gross sales.
(e) (i) Notwithstanding subparagraph division (c), where income is derived by a
broadcaster from broadcasting, the part attributable to business within the state shall be

in the proportion that the gross receipts from broadcasting derived from customers whose
commercial domicile is in this state bears to the total gross receipts from broadcasting.
(ii) Notwithstanding subparagraph subdivision (i) or subparagraph division (c), where
income is derived by a broadcaster from national or local political advertising that is directed
exclusively at one or more markets in this state, all gross receipts from such advertising shall
be attributable to business within the state.
(iii) For purposes of this subparagraph division:
(A) “Broadcaster” means a taxpayer who is engaged in the business of broadcasting.
“Broadcaster” includes a television network, a cable program network, and a television
distribution company. “Broadcaster” does not include a cable system operator, a direct
broadcast satellite system operator, or a television or radio station licensed by the federal
communications commission.
(B) “Broadcasting” means the transmission of film programming by an electronic or
other signal conducted by microwaves, wires, lines, coaxial cables, wave guides, fiber optics,
satellite transmissions, or through any other means of communication directly or indirectly
to viewers and listeners.
(C) “Customer” means a person who has a direct contractual relationship with a
broadcaster from whom the broadcaster derives gross receipts. “Customer” includes but is
not limited to an advertiser or licensee.
(D) “Gross receipts from broadcasting” means gross receipts of a broadcaster from
transactions and activities in the regular course of its business, including but not limited to
advertising, licensing, and distribution, but excluding gross receipts from the sale of real
property or tangible personal property.
(f) Notwithstanding subparagraph division (c), income described in section 29C.24,
subsection 3, paragraph “a”, subparagraph (3), shall not be allocated and apportioned to the
state, as provided in section 29C.24.
(g) Where income consists of more than one class of income as provided in subparagraph
divisions (a) through (e) of this subparagraph, it shall be reasonably apportioned by the
business activity ratio provided in rules adopted by the director.
(h) The gross sales of the corporation within the state shall be taken to be the gross sales
from goods delivered or shipped to a purchaser within the state regardless of the F.O.B. point
or other conditions of the sale, excluding deliveries for transportation out of the state.
b. For the purpose of this subsection:
(1) “Manufacture” shall include the extraction and recovery of natural resources and all
processes of fabricating and curing.
(2) “Sale” shall include exchange.
(3) “Tangible personal property” shall be taken to mean corporeal personal property, such
as machinery, tools, implements, goods, wares, and merchandise, and shall not be taken
to mean money deposits in banks, shares of stock, bonds, notes, credits, or evidence of an
interest in property and evidences of debt.
3. If any taxpayer believes that the method of allocation and apportionment prescribed
in subsections 1A and 2, as administered by the director and applied to the taxpayer’s
business, has operated or will so operate as to subject the taxpayer to taxation on a greater
portion of the taxpayer’s net income than is reasonably attributable to business or sources
within the state, the taxpayer shall be entitled to file with the director a statement of the
taxpayer’s objections and of such alternative method of allocation and apportionment as
the taxpayer believes to be proper under the circumstances with such detail and proof and
within such time as the director may reasonably prescribe; and if the director shall conclude
that the method of allocation and apportionment theretofore employed is in fact inapplicable
and inequitable, the director shall redetermine the taxable income by such other method of
allocation and apportionment as seems best calculated to assign to the state for taxation the
portion of the income reasonably attributable to business and sources within the state, not
exceeding, however, the amount which would be arrived at by application of the statutory
rules for apportionment.
4. Reserved.
5. a. The taxes imposed under this subchapter shall be reduced by a state tax credit

through the tax year beginning on or after January 1, 2025, but before January 1, 2026, for
increasing research activities in this state equal to the sum of the following:
(1) Six and one-half percent of the excess of qualified research expenses during the tax
year over the base amount for the tax year based upon the state’s apportioned share of the
qualifying expenditures for increasing research activities.
(2) Six and one-half percent of the basic research payments determined under section
41(e)(1)(A) of the Internal Revenue Code during the tax year based upon the state’s
apportioned share of the qualifying expenditures for increasing research activities.
b. (1) Thestate’sapportionedshareofthequalifyingexpendituresforincreasingresearch
activities is a percent equal to the ratio of qualified research expenditures in this state to the
total qualified research expenditures.
(2) For the purpose of calculating the state’s apportioned share of the qualifying
expenditures for increasing research activities in subparagraph (1), the following criteria
shall apply only to the determination of qualified research expenditures in this state:
(a) Wagespaidtoanemployeeforqualifiedservices,orcontractresearchexpensespaidto
a third party for the performance of qualified research services, shall only constitute qualified
research expenses in this state if the services are performed in this state, and if the following
conditions are met, as applicable:
(i) For qualified services performed by employees, during the period of the tax year that
the business is engaging in one or more research projects, a majority of the total services
performed by the employee for the business are directly related to those research projects.
(ii) For the performance of qualified research services by a third party, during the period
of the business’s tax year that the third party is performing research services for the business,
a majority of the total services performed by the person for the third party are directly related
to those research projects of the business.
(b) The substantially all rule for determining qualified services as described in section
41(b)(2)(B) of the Internal Revenue Code and Treas. Reg. 1.41-2(d)(2) does not apply.
(c) Amounts paid for the right to use computers as described in section 41(b)(2)(A)(iii) of
the Internal Revenue Code shall not be qualified research expenses in this state.
(d) For tax years beginning on or after January 1, 2023, but before January 1, 2027,
amounts paid for supplies as defined in section 41(b)(2)(C) of the Internal Revenue Code
shall only constitute qualified research expenses in this state if the supplies directly relate to
research performed in this state and shall be limited to the following allowable percentages:
(i) For the tax year beginning on or after January 1, 2023, but before January 1, 2024,
eighty percent of the amounts paid for supplies directly related to research performed in this
state.
(ii) For the tax year beginning on or after January 1, 2024, but before January 1, 2025,
sixty percent of the amounts paid for supplies directly related to research performed in this
state.
(iii) For the tax year beginning on or after January 1, 2025, but before January 1, 2026,
forty percent of the amounts paid for supplies directly related to research performed in this
state.
(e) For tax years beginning on or after January 1, 2026, amounts paid for supplies as
defined in section 41(b)(2)(C) of the Internal Revenue Code shall not be qualified research
expenses in this state.
c. Inlieuofthecreditamountcomputedinparagraph“a”,subparagraph(1),acorporation
shall elect to compute the credit amount for qualified research expenses incurred in this state
in a manner consistent with the alternative simplified credit described in section 41(c)(4)
of the Internal Revenue Code if the taxpayer elected or was required to use the alternative
simplified credit method for federal income tax purposes for the same taxable year.
d. Forpurposesofthealternatecreditcomputationmethodinparagraph“c”,thefollowing
criteria shall apply:
(1) The credit percentages applicable to qualified research expenses described in section
41(c)(4)(A) and clause (ii) of section 41(c)(4)(B) of the Internal Revenue Code are four and
fifty-five hundredths percent and one and ninety-five hundredths percent, respectively.
(2) Basic research payments and qualified research expenses shall only include amounts

forresearchconductedinthisstate. Ataxpayer’squalifiedresearchexpensesinthisstateand
averageprioryearqualifiedresearchexpensesinthisstateshallbedeterminedinaccordance
with the rules in paragraph “b”, subparagraph (2).
e. A corporation shall only be eligible for the credit provided in this subsection if the
business conducting the research meets all of the following requirements:
(1) (a) The business is engaged in the manufacturing, life sciences, agriscience, software
engineering, or aviation and aerospace industry.
(b) Persons that shall not be considered to be engaged in the manufacturing, life
sciences, agriscience, software engineering, or aviation and aerospace industry, and thus are
not eligible for the credit, include but are not limited to all of the following:
(i) (A) A person engaged in agricultural production as defined in section 423.1, except
if the credit is based on conducting agriscience research and the person or the business is
engaged in bovine and porcine veterinary research, the person shall not be considered to be
engaged in agricultural production as defined in section 423.1.
(B) As used in this subparagraph subdivision, “agriscience research” means research
that is approved and overseen or monitored by a board that includes, at a minimum, an
individual who was employed with, contracted by, or professionally trained by an accredited
university as a researcher in an applied animal science and an individual holding a doctor
of veterinary medicine or a doctoral degree in an applied animal science; is conducted in
this state in an applied animal science; improves the scientific knowledge base or increases
scientific innovation, performance, or viability within this state; the results of the research
are evaluated by a person educated and trained in statistics by an accredited university and
capable of applying generally accepted methodologies to the results in accordance with
industry standards in an applied animal science; and the results of the research are made
available to the public by submission to or publication in a journal, magazine, or similar
periodical, if the statistical evaluation indicated the research is reliable and relevant to an
applied animal science.
(C) As used in this subparagraph subdivision, “applied animal science” includes the areas
ofanimalscience,veterinarymedicine,nutritionalscience,geneticscience,andmicrobiology.
(ii) A person who is a contractor, subcontractor, builder, or a contractor-retailer that
engages in commercial and residential repair and installation, including but not limited
to heating or cooling installation and repair, plumbing and pipe fitting, security system
installation, and electrical installation and repair. For purposes of this subparagraph
subdivision, “contractor-retailer” means a business that makes frequent retail sales to the
public or to other contractors and that also engages in the performance of construction
contracts.
(iii) A finance or investment company.
(iv) A retailer.
(v) A wholesaler.
(vi) A transportation company.
(vii) A publisher.
(viii) An agricultural cooperative association as defined in section 502.102.
(ix) A real estate company.
(x) A collection agency.
(xi) An accountant.
(xii) An architect.
(2) The business claims and is allowed a research credit for such qualified research
expenses under section 41 of the Internal Revenue Code for the same taxable year as it is
claiming the credit provided in this subsection.
(3) The credit provided in this subsection is claimed on a return filed by the due date
for filing the return, including extensions of time. If timely claimed, the business shall not
increase the credit claim on an amended return or otherwise unless either of the following
apply:
(a) The amended return is filed within six months of the due date for filing the return
which includes extensions of time.

(b) The increase results from an audit or examination by the internal revenue service or
the department.
f. (1) Forpurposesofthissubsection,“baseamount”meanstheproductofthefixed-based
percentage times the average annual gross receipts of the taxpayer for the four taxable years
preceding the taxable year for which the credit is being determined, but in no event shall the
base amount be less than fifty percent of the qualified research expenses for the credit year.
(2) For purposes of this subsection, “basic research payment” and “qualified research
expense” mean the same as defined for the federal credit for increasing research activities
under section 41 of the Internal Revenue Code, except as otherwise described in paragraph
“b”, subparagraph (2), and paragraph “d”, subparagraph (2).
g. (1) (a) The following percentage of the credit in excess of the tax liability for the
taxable year shall be refunded with interest in accordance with section 421.60, subsection 2,
paragraph “e”:
(i) For the tax year beginning on or after January 1, 2023, but before January 1, 2024,
ninety percent.
(ii) For the tax year beginning on or after January 1, 2024, but before January 1, 2025,
eighty percent.
(iii) For the tax year beginning on or after January 1, 2025, but before January 1, 2026,
seventy percent.
(iv) For the tax year beginning on or after January 1, 2026, but before January 1, 2027,
sixty percent.
(b) In lieu of claiming a refund pursuant to this subparagraph, a taxpayer may elect to
have the overpayment otherwise eligible for a refund shown on its final, completed return
credited to the tax liability for the following taxable year.
(2) Commencing with tax years beginning on or after January 1, 2027, fifty percent of
any credit in excess of the tax liability for the taxable year shall be refunded with interest
in accordance with section 421.60, subsection 2, paragraph “e”. In lieu of claiming a refund,
a taxpayer may elect to have the overpayment otherwise eligible for a refund shown on its
final, completed return credited to the tax liability for the following taxable year.
(3) In applying the credit in this subsection against tax liability and computing the
eligible refund amount, the credit shall be applied after all nonrefundable credits available
to the taxpayer are applied, but before any other refundable credit available to the taxpayer
is applied.
h. The department shall by February 15 of each year issue an annual report to the general
assembly containing the total amount of all claims made by employers under this subsection
and the portion of the claims issued as refunds, for all claims processed during the previous
calendar year. The report shall contain the name of each claimant for whom a tax credit in
excess of five hundred thousand dollars was issued and the amount of the credit received.
i. This subsection is repealed January 1, 2027.
6. a. The taxes imposed under this subchapter shall be reduced by a new jobs tax
credit. An industry which has entered into an agreement under chapter 260E and which
has increased its base employment level by at least ten percent within the time set in the
agreement or, in the case of an industry without a base employment level, adds new jobs
within the time set in the agreement is entitled to this new jobs tax credit for the tax year
selected by the industry. In determining if the industry has increased its base employment
level by ten percent or added new jobs, only those new jobs directly resulting from the project
covered by the agreement and those directly related to those new jobs shall be counted.
b. The amount of this credit is equal to the product of six percent of the taxable wages, as
defined in section 96.1A, subsection 36, upon which an employer is required to contribute to
the state unemployment compensation fund, times the number of new jobs existing in the tax
year that directly result from the project covered by the agreement or new jobs that directly
result from those new jobs. The tax year chosen by the industry shall either begin or end
duringtheperiodbeginningwiththedateoftheagreementandendingwiththedatebywhich
the project is to be completed under the agreement. Any credit in excess of the tax liability
for the tax year may be credited to the tax liability for the following ten tax years or until
depleted in less than the ten years.

c. For purposes of this section, “agreement”, “industry”, “new job”, and “project” mean the
sameasdefinedinsection260E.2and“baseemploymentlevel”meansthenumberoffull-time
jobs an industry employs at the plant site which is covered by an agreement under chapter
260E on the date of that agreement.
7. Reserved.
8. The taxes imposed under this subchapter shall be reduced by a franchise tax credit.
A taxpayer who is a shareholder in a financial institution, as defined in section 581 of the
Internal Revenue Code, which has in effect for the tax year an election under subchapter S
of the Internal Revenue Code shall compute the amount of the tax credit by recomputing the
amount of tax under this subchapter by reducing the taxable income of the taxpayer by the
taxpayer’s pro rata share of the items of income and expense of the financial institution. This
recomputed tax shall be subtracted from the tax computed under this subchapter and the
resulting amount, which shall not exceed the taxpayer’s pro rata share of franchise tax paid
by the financial institution, is the amount of the franchise tax credit allowed.
9. a. (1) The taxes imposed under this subchapter shall be reduced by an assistive
device tax credit through the tax year beginning on or after January 1, 2024, but before
January 1, 2025. A small business purchasing, renting, or modifying an assistive device or
making workplace modifications for an individual with a disability who is employed or will
be employed by the small business is eligible, subject to availability of credits, to receive this
assistive device tax credit which is equal to fifty percent of the first five thousand dollars
paid during the tax year for the purchase, rental, or modification of the assistive device or
for making the workplace modifications. The following percentage of any credit in excess of
the tax liability shall be refunded with interest in accordance with section 421.60, subsection
2, paragraph “e”, as follows:
(a) For the tax year beginning on or after January 1, 2023, but before January 1, 2024,
ninety-five percent.
(b) For the tax year beginning on or after January 1, 2024, but before January 1, 2025,
ninety percent.
(2) In lieu of claiming a refund, a taxpayer may elect to have the overpayment otherwise
eligible for a refund shown on the taxpayer’s final, completed return credited to the tax
liability for the following tax year. If the small business elects to take the assistive device
tax credit, the small business shall not deduct for Iowa tax purposes any amount of the cost
of an assistive device or workplace modifications which is deductible for federal income tax
purposes.
b. To receive the assistive device tax credit, the eligible small business must submit an
application to the economic development authority. If the taxpayer meets the criteria for
eligibility, the economic development authority shall issue to the taxpayer a certification
of entitlement for the assistive device tax credit. However, the combined amount of tax
credits that may be approved for a fiscal year under this subsection shall not exceed five
hundred thousand dollars. Tax credit certificates shall be issued on an earliest filed basis.
The certification shall contain the taxpayer’s name, address, tax identification number, the
amount of the credit, and tax year for which the certificate applies. The taxpayer must file
the tax credit certificate with the taxpayer’s corporate income tax return in order to claim
the tax credit. The economic development authority and department of revenue shall each
adopt rules to jointly administer this subsection and shall provide by rule for the method to
be used to determine for which fiscal year the tax credits are approved.
c. For purposes of this subsection:
(1) “Assistive device” means any item, piece of equipment, or product system which is
used to increase, maintain, or improve the functional capabilities of an individual with a
disabilityintheworkplaceoronthejob. “Assistivedevice”doesnotmeananymedicaldevice,
surgical device, or organ implanted or transplanted into or attached directly to an individual.
“Assistive device” does not include any device for which a certificate of title is issued by the
state department of transportation, but does include any item, piece of equipment, or product
system otherwise meeting the definition of “assistive device” that is incorporated, attached,
or included as a modification in or to such a device issued a certificate of title.

(2) “Disability”meansthesameasdefinedinsection15.102,exceptthatitdoesnotinclude
alcoholism.
(3) “Small business” means a business that either had gross receipts for its preceding tax
year of three million dollars or less or employed not more than fourteen full-time employees
during its preceding tax year.
(4) “Workplace modifications” means physical alterations to the work environment.
d. This subsection is repealed January 1, 2031.
10. The taxes imposed under this subchapter shall be reduced by a historic preservation
tax credit allowed under chapter 404A.
11. Reserved.
11A. Reserved.
11B. The taxes imposed under this subchapter shall be reduced by an E-85 gasoline
promotion tax credit for each tax year that the taxpayer is eligible to claim the tax credit
under this subsection.
a. The taxpayer shall claim the tax credit in the same manner as provided in section
422.11O. The taxpayer may claim the tax credit according to the same requirements, for the
sameamount,andcalculatedinthesamemanner,asprovidedfortheE-85gasolinepromotion
tax credit pursuant to section 422.11O.
b. Any E-85 gasoline promotion tax credit which is in excess of the taxpayer’s tax liability
shall be refunded or may be shown on the taxpayer’s final, completed return credited to the
tax liability for the following tax year in the same manner as provided in section 422.11O.
c. This subsection is repealed January 1, 2028.
11C. The taxes imposed under this subchapter shall be reduced by a biodiesel blended
fuel tax credit for each tax year that the taxpayer is eligible to claim the tax credit under this
subsection.
a. The taxpayer may claim the biodiesel blended fuel tax credit according to the same
requirements, for the same amount, and calculated in the same manner, as provided for the
biodiesel blended fuel tax credit pursuant to section 422.11P.
b. Any biodiesel blended fuel tax credit which is in excess of the taxpayer’s tax liability
shall be refunded or may be shown on the taxpayer’s final, completed return credited to the
tax liability for the following tax year in the same manner as provided in section 422.11P.
c. This subsection is repealed January 1, 2028.
11D. The taxes imposed under this subchapter shall be reduced by an E-15 plus gasoline
promotion tax credit for each tax year that the taxpayer is eligible to claim the tax credit
under this subsection.
a. The taxpayer shall claim the tax credit in the same manner as provided in section
422.11Y. The taxpayer may claim the tax credit according to the same requirements, for
the same amount, and calculated in the same manner, as provided for the E-15 plus gasoline
promotion tax credit pursuant to section 422.11Y.
b. Any E-15 plus gasoline promotion tax credit which is in excess of the taxpayer’s
tax liability shall be refunded or may be shown on the taxpayer’s final, completed return
credited to the tax liability for the following tax year in the same manner as provided in
section 422.11Y.
c. This subsection is repealed January 1, 2028.
12. a. The taxes imposed under this subchapter shall be reduced by an investment tax
credit authorized pursuant to section 15E.27 for an investment in a qualifying business.
b. The taxes imposed under this subchapter shall be reduced by investment tax credits
authorized pursuant to sections 15.508 and 15.496.
13. The taxes imposed under this subchapter shall be reduced by an innovation fund
investment tax credit allowed under section 15E.52.
14. ThetaxesimposedunderthissubchaptershallbereducedbyanendowIowataxcredit
authorized pursuant to section 15E.305.
15. The taxes imposed under this subchapter shall be reduced by a workforce housing
investment tax credit allowed under section 15.355, subsection 3.
16. The taxes imposed under this subchapter shall be reduced by tax credits for wind

energy production allowed under chapter 476B and for renewable energy allowed under
chapter 476C.
17. The taxes imposed under this subchapter shall be reduced by the research and
development tax credit allowed pursuant to section 15.524.
18. Reserved.
19. Reserved.
20. The taxes imposed under this subchapter shall be reduced by a tax credit authorized
pursuant to section 15E.66, if redeemed, for investments in the Iowa fund of funds.
21. The taxes imposed under this subchapter shall be reduced by a beginning farmer tax
credit as allowed under chapter 16, subchapter VIII, part 5, subpart B.
22. The taxes imposed under this subchapter shall be reduced by a renewable chemical
production tax credit allowed under section 15.319. This subsection is repealed January 1,
2041.
23. The taxes imposed under this subchapter shall be reduced by a sustainable aviation
fuel tax credit allowed under section 15.533. This subsection is repealed January 1, 2037.
24. Reserved.
25. a. The taxes imposed under this subchapter shall be reduced by a charitable
conservation contribution tax credit equal to fifty percent of the fair market value of a
qualified real property interest located in the state that is conveyed as an unconditional
charitable donation in perpetuity by the taxpayer to a qualified organization exclusively for
conservation purposes. The maximum amount of tax credit is one hundred thousand dollars.
The amount of the contribution for which the tax credit is claimed shall not be deductible in
determining taxable income for state tax purposes.
b. For purposes of this section, “conservation purpose”, “qualified organization”, and
“qualified real property interest” mean the same as defined for the qualified conservation
contribution under section 170(h) of the Internal Revenue Code, except that a conveyance of
land for open space for the purpose of fulfilling density requirements to obtain subdivision
or building permits shall not be considered a conveyance for a conservation purpose.
c. Any credit in excess of the tax liability is not refundable but the excess for the tax
year may be credited to the tax liability for the following twenty tax years or until depleted,
whichever is the earlier.
26. The taxes imposed under this subchapter shall be reduced by a redevelopment tax
credit allowed under chapter 15, subchapter II, part 9.
27. Reserved.
28. The taxes imposed under this subchapter shall be reduced by a school tuition
organization tax credit allowed under section 422.11S.
29. a. The taxes imposed under this subchapter shall be reduced by a solar energy system
tax credit equal to sixty percent of the federal energy credit related to solar energy systems
provided in section 48(a)(2)(A)(i)(II) and section 48(a)(2)(A)(i)(III) of the Internal Revenue
Code, not to exceed twenty thousand dollars. For installations occurring on or after January
1, 2016, the applicable percentage of the federal energy credit related to solar energy systems
shall be fifty percent.
b. The taxpayer may claim the credit pursuant to this subsection according to the same
requirements, conditions, and limitations as provided pursuant to section 422.11L.
30. The taxes imposed under this subchapter shall be reduced by a from farm to food
donation tax credit as allowed under chapter 190B.
31. The taxes imposed under this subchapter shall be reduced by a Hoover presidential
library tax credit allowed under section 15E.364.
32. a. The taxes imposed under this subchapter shall be reduced by an employer child
care tax credit allowed pursuant to section 237A.31.
b. This subsection is repealed January 1, 2031.

Legislative History

[C35, §6943-f29; C39, §6943.065; C46, 50, 54, 58, 62, 66, 71, 73, 75, 77, 79, 81, §422.33; 81 Acts, ch 135, §1 – 3; 82 Acts, ch 1023, §12, 13, 30, 31, ch 1234, §1]