Other Nonrefundable Iowa Credits

Line
50
Step
9
Step Subject
Tax, Credits & Checkoff Contributions
Instruction Year
2014

Enter the total of the credits from Part I of the IA 148 Tax Credits Schedule. IA 148 Tax Credits Schedule (pdf) must be completed.

Agricultural Assets Transfer Tax Credit

A tax credit for agricultural asset transfers from a taxpayer to beginning farmers is available for individual and corporation income taxpayers.

The tax credit is only allowed for agricultural assets that are subject to a lease or rental agreement. The lease must be for a term of at least two years, but not more than five years. The taxpayer must meet certain qualifications as established by rules adopted by the Iowa Finance Authority. The beginning farmer must be eligible to receive financial assistance as required by Code section 16.75.

The tax credit is based upon the gross amount paid to the taxpayer under the lease agreement by the beginning farmer. The tax credit equals 7% of the amount paid to the taxpayer under the agreement or, in the alternative, the tax credit equals 17% of the amount paid to the taxpayer from crops or animals sold under an agreement in which the payment is exclusively made from the sale of crops or animals.

If the beginning farmer is a veteran, the credit is 8% or 18% for the first year of the agreement.

A tax credit certificate is issued by the Iowa Agricultural Development Division of the Iowa Finance Authority that includes the tax credit certificate number which must be reported on the IA 148 Tax Credits Schedule when the tax credit is claimed. Any tax credit in excess of the tax liability is not refundable, but if awarded in tax year 2008 or later, can be carried forward for the following ten years or until depleted, whichever is earlier. A tax credit is not transferable to any other person other than the taxpayer's estate or trust upon the taxpayer's death. If the tax credit is issued to a partnership, limited liability company, S corporation, estate, or trust, the tax credit can be claimed by the individual based on the pro rata share of the income of the entity.

The lease or rental agreement may be terminated by either the taxpayer or the beginning farmer. If the Iowa Agricultural Development Division determines that the taxpayer is not at fault for the termination, the Division will not issue a tax credit certificate for subsequent years, but any prior tax credit certificates issued will be allowed. If the Division determines that the taxpayer is at fault for the termination, any prior tax credit certificates issued will be disallowed, and the tax credits can be recaptured by the Department of Revenue.

The Beginning Farmer Tax Credit Program, which includes the Agricultural Assets Transfer and Custom Farming Contract Tax Credits, is capped at $12 million starting with the State fiscal year beginning July 1, 2013 - $8 million is allocated to the Agricultural Assets Transfer Tax Credit, and $4 million is allocated to the Custom Farming Contract Tax Credit. The maximum credit issued to a taxpayer is $50,000.

Sections 422.11M and 422.33 (21); 16.78 - 16.82

Charitable Conservation Contribution Tax Credit

Effective for tax years beginning on or after January 1, 2008, a tax credit is available for individual income and corporation income tax equal to 50% of the fair market value of a qualified real property interest located in Iowa that is conveyed as an unconditional charitable donation in perpetuity by a taxpayer to a qualified organization exclusively for conservation purposes.

The maximum amount of the credit is $100,000. The amount of the contribution for which the tax credit is claimed is not deductible as an itemized deduction for Iowa income tax purposes.

The terms “conservation purpose,” “qualified organization,” and “qualified real property interest” mean the same as set forth in section 170(h) of the Internal Revenue Code. Any tax credit in excess of the tax liability is not refundable but may be credited to the tax liability for the following 20 years or until depleted, whichever is earlier.

Taxpayers filing credit claims for the Charitable Conservation Contribution Tax Credit are required to include a copy of federal Form 8283 – Noncash Charitable Contribution with the Iowa return. If a qualified appraisal of the property or other relevant information is required to be included with the federal Form 8283 for federal tax purposes, the appraisal and other relevant information must also be included with the Iowa return.

Sections 422.11W and 422.33 (25)

Custom Farming Contract Tax Credit

For tax years beginning on or after January 1, 2013, a custom farming credit is available for landowners who hire a beginning farmer to do custom work and allows the landowner to claim 7% of the value of the contract on a tax credit. If the beginning farmer is a veteran, the credit is 8% for the first year. The credit is administered by the Iowa Agricultural Development Division of the Iowa Finance Authority.

The taxpayer must pay the beginning farmer on a cash basis, and the contract must be in writing for a term of not more than twelve months. The total cash payment must equal at least $1,000. The maximum credit issued to a taxpayer is $50,000.

A tax credit certificate is issued by the Iowa Agricultural Development Division of the Iowa Finance Authority that includes the tax credit certificate number which must be reported on the IA 148 Tax Credits Schedule when the tax credit is claimed. Any credit in excess of the tax liability is not refundable, but can be carried forward for ten years or until depleted, whichever is earlier.

The Beginning Farmer Tax Credit Program, which includes the Agricultural Assets Transfer and Custom Farming Contract Tax Credits, is capped at $12 million starting with the State fiscal year beginning July 1, 2013;$8 million is allocated to the Agricultural Assets Transfer Tax Credit, and $4 million is allocated to the Custom Farming Contract Tax Credit.

Sections 422.11M and 422.33 (21); 16.78 - 16.82

Endow Iowa Tax Credit

The Endow Iowa Tax Credit is equal to 25% of a taxpayer's endowment gift to a qualified community foundation. The gift must be for a permanent endowment fund established to benefit a charitable cause in Iowa. The Iowa Economic Development Authority is responsible for registering and authorizing the tax credits, and controlling the distribution of these tax credits.

Any tax credit in excess of the taxpayer's tax liability can be carried forward for the following five years or until depleted, whichever occurs first. The amount of the contribution cannot be taken as an itemized deduction for charitable contributions for Iowa income tax purposes.

An individual can claim the credit for a gift made by a partnership, limited liability company, S corporation, estate, or trust electing to have the income taxed to the individual, based on the pro rata share of earnings from the pass-through entity.

When the tax credit is awarded, the taxpayer receives a tax credit certificate number that must be reported on the IA 148 Tax Credits Schedule when the tax credit is claimed. Any credit in excess of the tax liability is not refundable, but the excess can be carried forward to the tax liability for the next five years or until depleted, whichever is earlier.

Sections 422.11H, 422.33(14) and 422.60(7)

Farm to Food Donation

For tax years beginning on or after January 1, 2014, a Farm to Food Donation Tax Credit is available for individual and corporation income tax. In order to qualify for the credit, the taxpayer must produce a food commodity and donate it to an Iowa food bank or an Iowa emergency feeding organization. The donated food may not be damaged or out-of-condition and unfit for human consumption. A food commodity that meets the requirements for donated foods pursuant to the Federal Emergency Food Assistance Program satisfies this requirement.

Individual members of a partnership, limited liability company, S corporation, estate, or trust electing to have income taxed directly to the individual shall claim the credit based upon the pro rata share of their earnings from the business entity.

The tax credit is available for 15% of the value of the food commodities donated in the tax year, when valued according to the federal guidelines for charitable contribution of food under Internal Revenue Code section 170(e)(3)(c), or $5,000, whichever is less. The amount of the contribution for which the tax credit is claimed is not allowed as an itemized deduction for Iowa income tax.

When the tax credit is awarded by the Iowa Department of Revenue, the taxpayer receives a tax credit certificate number that must be reported on the IA 148 Tax Credits Schedule when the tax credit is claimed. Any credit in excess of the tax liability is not refundable, but the excess can be carried forward to the tax liability for the next five years or until depleted, whichever is earlier.

Sections 422.11E and 422.33(30)

Film Expenditure Tax Credit

This credit was repealed for tax years beginning on or after January 1, 2012, so only unused awarded credits from a prior year may be claimed for 2014.

Film Investment Tax Credit

This credit was repealed for tax years beginning on or after January 1, 2012, so only unused awarded credits from a prior year may be claimed for 2014.

Franchise Tax Credit

If a financial institution as defined in section 581 of the Internal Revenue Code elects to file as an S corporation for federal income tax purposes and therefore have its income taxed directly to the shareholders, those shareholders qualify for a franchise tax credit. Starting with any financial institutions organized as limited liability companies on or after July1, 2004, the franchise tax credit is also available to members of the limited liability company.

Iowa imposes a franchise tax on all financial institutions, and Iowa does not recognize the S corporation or limited liability company election for Iowa franchise tax purposes. Therefore, the franchise tax credit is allowed to avoid double taxation of income.

The IA 147 (pdf) should be used to help you calculate the credit. Include this form with your return.

The amount of any unused credit may not be carried forward and must be reflected as expired on the IA 148 Tax Credits Schedule.

Sections 422.11 and 422.33(8)

Geothermal Heat Pump Tax Credit

Effective for tax years beginning on or after January 1, 2012, a geothermal heat pump tax credit is available for individual income tax equal to 20% of the federal residential energy efficient property tax credit allowed for geothermal heat pumps provided in section 25D(a)(5) of the Internal Revenue Code for residential property located in Iowa.

The federal credit is available for property placed in service before January 1, 2017, so the Iowa credit will be available for the 2012-2016 tax years. The federal credit is claimed on federal form 5695, Residential Energy Credits.

Any credit in excess of the tax liability is not refundable, but the excess can be carried forward to the tax liability for the next ten years or until depleted, whichever is earlier.

Section 422.11I

Housing Investment Tax Credit

Starting in 1999, for taxpayers approved by the Iowa Economic Development Authority under the Eligible Housing Enterprise Zone Program, a Housing Investment Tax Credit is available equal to 10% of the new investment directly related to the building or rehabilitation of homes in an enterprise zone. When the tax credit is awarded, the taxpayer receives a tax credit certificate number that must be reported on the IA 148 Tax Credits Schedule when the tax credit is claimed. Any credit in excess of the tax liability is not refundable, but the excess can be carried forward to the tax liability for the next seven years or until depleted, whichever is earlier. The credit is based on a maximum of $140,000 for each single-family home or for each unit of a multiple dwelling.

Starting in 2003, if low-income housing credits under section 42 of the Internal Revenue Code were used to help finance the housing project, the Housing Investment Tax Credit can be transferred to another person or entity.

Effective for projects beginning on or after July 1, 2005, the Housing Investment Tax Credit can be transferred if the housing development is located in a brownfield site or in a blighted area, up to $3 million per year.

The program was eliminated effective July 1, 2014, and was replaced by the Workforce Housing Credit.

Innovation Fund Tax Credit

An Innovation Fund Tax Credit equal to 25% of the taxpayer's equity investment in an innovation fund. The credit is available for investments made on or after January 1, 2013. The innovation fund must be certified by the Iowa Economic Development Authority. The tax credit is capped at $8 million per fiscal year.

The Authority issues tax credit certificates to investors who make cash investments in a certified innovation fund including a tax credit certificate number that must be reported on the IA 148 Tax Credits Schedule when the tax credit is claimed. No tax credit certificates were issued before September 1, 2014. Any tax credit in excess of the tax liability is not refundable but may be carried forward to the tax liability for the following five years or until depleted, whichever is earlier. The credits are transferable, but may only be transferred once.

Sections 15E.52, 422.11Y, 422.33(13) and 422.60(13).

Investment Tax Credit

An Investment Tax Credit of up to 10% of the purchase price of real property including any buildings and structures located on the real property, cost of machinery and equipment, and the cost of improvements to real property is available to an eligible business. An eligible business must be approved by the Iowa Economic Development Authority under the High Quality Jobs Program. Prior to July 1, 2014, awards were also made under the New Jobs and Income Program, New Capital Investment Program, Enterprise Zone Program, or the High Quality Jobs Program.

When the tax credit is awarded, the taxpayer receives a tax credit certificate number that must be reported on the IA 148 Tax Credits Schedule when the tax credit is claimed. Any credit in excess of tax liability is not refundable, but the excess can be carried forward to the tax liability for the next seven years or until depleted, whichever is earlier. If you are a partner, shareholder, member, or beneficiary in a partnership, corporation, limited liability company, estate, or trust, you may claim the investment tax credit for the qualifying entity. The amount of the credit is based on your pro rata share of the earnings of the qualifying entity.

Minimum Tax Credit

You may be eligible for this credit if you paid Iowa minimum tax in prior years based on tax preferences and adjustments. The credit is limited to the extent the regular tax exceeds the minimum tax for a tax year. There is no limit on the number of years this credit can be carried forward. Compute on form IA 8801 and include with the IA 1040.

Sections 422.11B, 422.33(7) and 422.60(3)

New Jobs Tax Credit

A new business or an existing business that has increased employment by 10% and has a 260E job training agreement with a vocational school or area community college, may qualify for the New Jobs Tax Credit. This is a one-time credit, equal to 6% of the taxable wages which the employer is required to contribute to the State unemployment compensation fund.

Compute this credit on worksheet IA 133. When the 260E contract is signed, the taxpayer receives a tax credit certificate number that must be reported on the IA 148 Tax Credits Schedule when the New Jobs Tax Credit is claimed.

For 2014, this tax credit equals $1,608 ($26,800 maximum wages times 6%) for each job created. Any credit in excess of the tax liability is not refundable, but the excess can be carried forward to the tax liability for the next ten years or until depleted, whichever is earlier.

Section 422.11A and 422.33(6)

Redevelopment Tax Credit

The Redevelopment Tax Credit is based on a percentage of the taxpayer's qualifying investment in redeveloping a Brownfield or Grayfield site. A Brownfield site is defined as an abandoned, idled, or underutilized industrial or commercial facility where expansion or redevelopment is complicated by real or perceived environmental contamination. A Grayfield site is defined as a property that has been developed and has infrastructure in place but the property's current use is outdated or prevents a better or more efficient use of the property. Such property includes vacant, blighted, obsolete, or otherwise underutilized property. Additional tax credit is available if the redevelopment meets established “green development” standards.

This tax credit program is administered by the Iowa Economic Development Authority. The total amount of tax credits available is $10 million for each fiscal year starting with the fiscal year beginning July 1, 2013. When the tax credit is awarded, the taxpayer receives a tax credit certificate number that must be reported on the IA 148 Tax Credits Schedule when the tax credit is claimed.

In general, any credit in excess of tax liability is not refundable, but the excess can be carried forward to the tax liability for the next five years or until depleted, whichever is earlier. The Redevelopment Tax Credit can be transferred to any person or entity. Non-profit applicants can receive a refundable tax credit. If you are a partner, shareholder, member, or beneficiary in a partnership, corporation, limited liability company, estate, or trust, you may claim the investment tax credit for the qualifying entity. The amount of the credit is based on your pro rata share of the earnings of the qualifying entity.

Note: For Iowa individual income tax purposes, the increase in the basis of the redeveloped property that would otherwise result from the qualified redevelopment costs will be reduced by the amount of the tax credit received.

Sections 15.293A, 422.11V, 422.33(26) and 422.60(14).

Renewable Energy Tax Credit

A producer or purchaser of renewable energy from a facility approved by the Iowa Utilities Board is entitled to a Renewable Energy Tax Credit equal to 1.5 cents per kilowatt hour of electricity, or $4.50 per million BTUs of heat, refuse-derived fuel, methane gas, or other biogas; or $1.44 per 1,000 standard cubic feet of hydrogen fuel.

The facilities approved cannot exceed 363 megawatts of nameplate generating capacity related to wind energy facilities, and cannot exceed the combined output of 20 megawatts of capacity and 167 billion BTUs of heat related to other facilities.

Beginning January 1, 2009, small wind energy systems operating in a small wind innovation zone will be eligible for the renewable energy tax credit of 1.5 cents per kilowatt-hour of electricity. The small wind energy system must have a nameplate generating capacity of 100 kilowatts or less.

A political subdivision of the state of Iowa, including but not limited to a city, county, township, school district, community college, area education agency, institution under the control of the state board of regents, or any other local commission, association, or tribal council can seek approval from the Iowa Utilities Board to set up a small wind innovation zone.

When the tax credit is awarded by the Iowa Department of Revenue, the taxpayer receives a tax credit certificate number that must be reported on the IA 148 Tax Credits Schedule when the tax credit is claimed. Any tax credit in excess of the tax liability can be carried forward for seven years. The credit can be transferred to any person or entity one time. A producer or purchaser can receive the tax credit certificates for a 10-year period.

Sections 422.11J, 422.33(16) and 422.60(8)

S Corporation Apportionment Tax Credit

Individual resident shareholders of S corporations which conduct business within and without Iowa can claim an S Corporation Apportionment Tax Credit. The credit is structured so that the S corporation is taxed on the greater of income attributable to Iowa under the single sales factor or actual distributions by the S corporation less federal income tax. The intent is to treat S corporations similar to C corporations that are entitled to apportion income within and without Iowa. Complete form IA 134 (pdf) and include with the IA 1040.

For tax years beginning on or after January 1, 2013, the credit is available to estate and trust shareholders of S corporations.

The amount of any unused credit may not be carried forward and must be reflected as expired on the IA 148 Tax Credits Schedule.

Section 422.8(2)(b)

School Tuition Organization Tax Credit

A School Tuition Organization Tax Credit is available for individual income tax equal to 65% of the amount of a contribution made by a taxpayer to a school tuition organization. A school tuition organization must be a charitable organization in Iowa that is exempt from federal taxation under section 501(c)(3) of the Internal Revenue Code that allocates at least 90% of its annual revenue in tuition grants for children who reside in Iowa to allow them to attend a qualified school of their parents' choice. The contribution cannot be used for the direct benefit of any dependent of the taxpayer or any other student designated by the taxpayer.

Total awards are capped at $12.0 million in 2014 and later, where at most 25 percent of awards can be awarded to corporations making contributions eligible for the School Tuition Organization Tax Credit.

Effective for tax years beginning on or after January 1, 2013, the credit is available to partnerships, limited liability companies, S corporations, estates, and trusts.  The credit is based on the pro-rata share of earnings from the pass-through entity.

The school tuition organization must represent more than one school, and they can only provide tuition grants to eligible students who are members of households whose annual income does not exceed an amount equal to three times the most recently published federal poverty guidelines published by the U.S. Department of Health and Human Services.

When the tax credit is awarded by a school tuition organization, the taxpayer receives a tax credit certificate number that must be reported on the IA 148 Tax Credits Schedule when the tax credit is claimed. Any credit in excess of the tax liability is not refundable but may be credited to the tax liability for the following five years or until depleted, whichever is earlier. The amount of the contribution cannot be taken as an itemized deduction for charitable contributions for Iowa income tax purposes.

NONRESIDENTS AND PART-YEAR RESIDENTS
The school tuition organization tax credit must be adjusted using the following steps:

Step 1. Divide Iowa net income (line 26, IA 126) by all-source net income of you and spouse (line 26, IA1040).

Step 2. Multiply Step 1 above by the amount of credit shown on the tax credit certificate.

Step 3. Enter this amount in column D on Part I of the IA 148.

Section 422.11S

Solar Energy System Tax Credit

Effective for tax years beginning on or after January 1, 2012, a Solar Energy System Tax Credit is available for investments made in solar energy systems installed in Iowa.

Effective for tax year 2014, for individuals, the solar energy system tax credit is equal to 60% of the federal residential energy efficient property tax credit related to solar systems provided in section 25D(a)(1) of the Internal Revenue Code for solar electric property and section 25D(a)(2) of the Internal Revenue Code for solar water heating property. The Iowa credit for an individual cannot exceed $5,000.

The federal credit is available for property placed in service before January 1, 2017, so the Iowa credit will be available for the 2012-2016 tax years. The federal credit is claimed on federal form 5695, Residential Energy Credits for individuals.

When the tax credit is awarded by the Iowa Department of Revenue, the taxpayer receives a tax credit certificate number that must be reported on the IA 148 Tax Credits Schedule when the tax credit is claimed. Any credit in excess of the tax liability is not refundable but may be carried forward to the tax liability for the next ten years or until depleted, whichever is earlier.

The cumulative amount of tax credits that can be issued to both individuals and businesses cannot exceed $4.5 million; $1 million under the annual cap is reserved for individuals.

An individual can claim the tax credit earned by a partnership, LLC, S corporation, or estate or trust electing to have income taxed directly to the individual. The amount claimed by the individual is based on the pro rata share of the individual’s earnings in the partnership, LLC, S corporation, or estate or trust.

Taxpayers who claim this credit are not eligible to claim a Renewable Energy Tax Credit for solar energy production under Iowa Code chapter 476C.

Sections 422.11L, 422.33(29), and 476C.2

Venture Capital Tax Credit - Iowa Fund of Funds

Starting in 2002, a contingent tax credit is available for investments to a qualifying business, community-based seed capital fund, or a venture capital fund certified by the Iowa Capital Investment Board. The tax credit is only allowed to the extent that the actual rate of return on these investments does not meet the rate of return guaranteed to investors. The Iowa fund of funds will make investments in venture capital funds who make a commitment to consider investments in businesses located in Iowa.

The contingent tax credits are capped at $60 million in the aggregate, and cannot be claimed until at least five years after the investment is made. Also, only $20 million of credits can be claimed in one year. The credit is nonrefundable, with a 7-year carryforward.

The tax credit certificate is issued by the Iowa Capital Investment Board which includes a tax credit certificate number that must be reported on the IA 148 Tax Credits Schedule when the tax credit is claimed. 

Section 15E.66

Venture Capital Tax Credit - Qualifying Business or Community-Based Seed Capital Fund

Effective in 2002, a tax credit was allowed for 20% of the equity investment made into a qualifying business or community-based seed capital fund approved by the Iowa Capital Investment Board. Awards were available until a total cap of $10 million was reached effective July 1, 2008.  The tax credit could not be claimed until three years after the investment is made; for example, investors who made investments in 2006 could not claim the tax credit until the 2009 tax return.

Effective for investments made on or after January 1, 2011, $2 million of tax credits can be awarded under the program each fiscal year.  The Venture Capital Tax Credit for Qualifying Business or Community-Based Seed Capital Fund is now administered by the Iowa Economic Development Authority. Effective for investments made after January 1, 2014 in qualifying businesses, taxpayers can claim the tax credit in the same year of the investment, except that investments made in 2014 cannot be redeemed until January 1, 2016.

When the tax credit is awarded, the taxpayer receives a tax credit certificate number that must be reported on the IA 148 Tax Credits Schedule when the tax credit is claimed. Any credit in excess of the tax liability is not refundable but may be carried forward to the tax liability for the following five years or until depleted, whichever is earlier.

Sections 15E.43, 422.11F, 422.33(12) and 422.60(5)

Venture Capital Tax Credit - Venture Capital Funds

Effective in 2002, a tax credit was allowed for 6% of the equity investment made in a venture capital fund approved by the Iowa Capital Investment Board. The tax credit could not be claimed until three years after the investment was made. The credits were capped in the aggregate at $5 million. Any credit in excess of the tax liability is not refundable but may be carried forward to the tax liability for the following five years or until depleted, whichever is earlier.

This credit was repealed for investments made after July 1, 2010.

Wind Energy Production Tax Credit

The Wind Energy Production Tax Credit is equal to one cent by the number of kilowatt-hours of electricity sold or used for on-site consumption by a wind energy production facility approved by the Iowa Utilities Board. Approved facilities must be placed in service on or after July 1, 2005, but before July 1, 2012, to qualify for the tax credit and are limited to 50 megawatts of nameplate capacity.

For applications filed on or after March 1, 2008, the facility must also consist of one or more wind turbines connected to a common gathering line which has a combined nameplate capacity of no less than two megawatts and no more than 30 megawatts.

Any credit in excess of the tax liability is not refundable but may be carried forward to the tax liability for the following seven years or until depleted, whichever is earlier. When the tax credit is awarded by the Iowa Department of Revenue, the taxpayer receives a tax credit certificate number that must be reported on the IA 148 Tax Credits Schedule when the tax credit is claimed. The Wind Energy Production Tax Credit can be transferred once. 

In cases where the applicant is a partnership, limited liability company, S corporation, estate, trust, or other reporting entity which elects to have income taxed directly to an individual and the applicant is also eligible to receive renewable electricity production tax credits authorized under section 45 of the Internal Revenue Code, the credit does not have to be based upon the individual's pro rata share of earnings from the entity.

For applications filed on or after July 1, 2009, Iowa colleges, schools, and public hospitals are eligible for the Wind Energy Production Tax Credit for qualified electricity generated for their own use as long as the combined nameplate capacity is ¾ of a megawatt or greater.

There are two alternatives to issue the tax credits, as noted below:

  • The credit can be claimed based on the amounts designated by the eligible partnership, limited liability company, or S corporation to a partner, member, or shareholder, or
  • The credit and all future rights to the tax credit may be distributed to an equity holder or beneficiary as a liquidating distribution, or portion thereof, of a holder or beneficiary's interest in the applicant entity

In both cases, the applicant must identify, in the application for the tax credit certificate, the holders or beneficiaries that are to receive the tax credit certificates.

Sections 422.11J, 422.33(16) and 422.60(8)

Workforce Housing Investment Tax Credit

Starting July 1, 2014, the Housing Enterprise Zone Investment Tax Credit was replaced by the Workforce Housing Investment Tax Credit. The workforce housing business must meet certain qualifications and must be approved by the Iowa Economic Development Authority. 

This credit is limited to 10% of $150,000 for each home or individual unit. Any credit in excess of the tax liability is not refundable but may be carried forward to the tax liability for the following five years or until depleted, whichever is earlier. If you are a partner, shareholder, member, or beneficiary in a partnership, corporation, limited liability company, estate, or trust, you may claim the workforce housing credit for the qualifying business. The amount of the credit is based on your pro rata share of the earnings of the qualifying business.

When the tax credit is awarded, the taxpayer receives a tax credit certificate number that must be reported on the IA 148 Tax Credits Schedule when the tax credit is claimed. The Workforce Housing Investment Tax Credit is transferable to any person to entity.

The incentives awarded under the Workforce Housing Program, which also includes a sales and use tax refund on building materials, is capped at $20 million per fiscal year.  

Sections 15.351 - 15.356, 422.11C, 422.33(15) and 422.60(12).

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