Iowa offers several refundable credits that may reduce tax liability and can result in a refund even when no Iowa income tax is owed. Many of these credits require a certificate number, state approval, credit certificate, Schedule K-1, or other supporting documentation.
Program Entry
Iowa Return → Credits → Other Credits → IA Refundable Credits
The Following Information Can Be Added
Assistive Device Credit
A refundable credit for qualifying expenditures related to assistive devices that help individuals with disabilities.
Biodiesel Blended Fuel Credit
A refundable credit related to the production, marketing, or sale of qualifying biodiesel blended fuel.
Claim of Right Credit
A credit for income that was previously taxed and later repaid under the federal claim of right provisions.
E85 Gasoline Promotion Credit
A refundable credit designed to encourage the sale and distribution of E85 gasoline.
Historic Preservation Credit
A refundable credit for approved rehabilitation and preservation of qualifying historic properties.
Research Activities Credit
A refundable credit for qualifying research activities conducted in Iowa.
Additional Research Activities Credit
An additional refundable credit available for qualifying research activities beyond the standard Research Activities Credit.
Third-Party Developer Tax Credit
A refundable credit available to qualifying third-party developers participating in approved projects.
Ethanol Promotion Credit
A refundable credit intended to encourage ethanol production and distribution within Iowa.
E15 Plus Gasoline Promotion Credit
A refundable credit designed to encourage the sale and use of E15 Plus gasoline blends.
Adoption Tax Credit
A refundable credit for qualifying adoption expenses. Additional information is entered through Form IA 177.
Refundable Redevelopment Tax Credit
A refundable credit for approved redevelopment projects within Iowa.
Venture Capital - Qualifying Business Tax Credit
A refundable credit for qualifying venture capital investments in approved Iowa businesses.
Renewable Chemical Production Tax Credit
A refundable credit for the production of qualifying renewable chemicals within Iowa.
Third-Party Developer Tax Credit for Racks, Shelving, and Conveyor Equipment
A refundable credit associated with approved third-party logistics and distribution projects involving racks, shelving, and conveyor equipment.
Notes
- Most refundable credits require approval, certification, or supporting documentation.
- A separate credit entry may be required for each credit being claimed.
- Some credits require a certificate number issued by the State of Iowa.
- Credits received through a pass-through entity should be reported using the information provided by the entity.
- Retain all supporting documentation used to claim a refundable credit.
For more information, please see Iowa Department of Revenue.