Iowa offers several nonrefundable credits that may reduce Iowa income tax liability. Nonrefundable credits can reduce tax owed but generally cannot create or increase a refund. Many credits require a certificate number, approval letter, Schedule K-1, or other supporting documentation.
Program Entry
Iowa Return → Credits → Other Credits → IA Nonrefundable Credits
The Following Information Can Be Added
Endow Iowa Credit
A credit for qualifying charitable contributions made through an approved Endow Iowa program.
Franchise Tax Credit
A credit for franchise taxes paid by certain pass-through entities and financial institutions.
Nonrefundable Historic Preservation and Cultural and Entertainment District Tax Credit
A credit for qualifying rehabilitation projects involving historic properties and designated cultural and entertainment districts.
Housing Investment Tax Credit
A credit designed to encourage investment in affordable housing projects within Iowa.
Investment Tax Credit
A credit available for qualifying investments made in approved Iowa business projects.
Iowa New Jobs Credit
A credit for businesses that create new jobs and meet the requirements of approved economic development programs.
Minimum Tax Credit
A credit that may be available when Iowa alternative minimum tax was paid in a prior year.
Renewable Energy Credit
A credit for qualifying renewable energy production or generation activities.
S Corporation Apportionment Credit
A credit related to Iowa income apportioned through an S corporation.
School Tuition Organization Tax Credit
A credit for qualifying contributions made to approved School Tuition Organizations.
Venture Capital Credit - Fund of Funds
A credit related to investments made through approved venture capital fund-of-funds programs.
Venture Capital Credit - Qualified Business and Seed Capital Tax Credit
A credit for qualifying investments in approved Iowa businesses and seed capital programs.
Venture Capital Credit - Venture Capital Funds
A credit related to investments made through approved venture capital funds.
Wind Energy Production Tax Credit
A credit for qualifying wind energy production activities.
Agricultural Assets Transfer Credit
A credit available to owners of agricultural assets who lease or sell those assets to beginning farmers.
Charitable Conservation Contribution Tax Credit
A credit for qualifying conservation contributions made to preserve land for conservation purposes.
Redevelopment Tax Credit
A credit for approved redevelopment projects within Iowa.
Solar Energy System Tax Credit
A credit for qualifying solar energy system installations.
Geothermal Heat Pump Tax Credit
A credit for qualifying geothermal heating and cooling systems.
Custom Farming Contract Tax Credit
A credit associated with qualifying custom farming contracts involving beginning farmers.
Innovation Fund Tax Credit
A credit designed to encourage investment in innovation-focused businesses and projects in Iowa.
Farm to Food Donation Tax Credit
A credit for taxpayers who donate eligible food commodities to approved food banks or food assistance programs.
Workforce Housing Investment Tax Credit
A credit for investments in approved workforce housing projects.
Geothermal Tax Credit
A credit for qualifying geothermal energy-related projects and investments.
Hoover Presidential Library Tax Credit
A credit for qualifying contributions made to support the Hoover Presidential Library.
Third-Party Developer Tax Credit
A credit available to approved third-party developers participating in qualifying Iowa projects.
Third-Party Developer Tax Credit for Racks, Shelving, and Conveyor Equipment
A credit associated with approved third-party logistics and distribution projects involving racks, shelving, and conveyor equipment.
Notes
- Most nonrefundable credits require supporting documentation, certificates, approval letters, or pass-through entity information.
- A separate entry may be required for each credit claimed.
- Credits received through a partnership, S corporation, trust, estate, or other pass-through entity should match the information reported by the entity.
- Nonrefundable credits generally cannot reduce Iowa tax below zero.
- Taxpayers should retain all records supporting any credit claimed on the return.