Second generation biofuel and Qualified fuel cell

  • Under Section 122 of the Act

    The $1.01-per-gallon income tax credit for certain second generation biofuel sales or biofuel mixture sales or uses has been extended for 2018, 2019, and 2020. If you claim this credit for any of the applicable years, you may take a reduction to the extent the credit increased your federal AGI (individuals), or federal taxable income (corporations), reported on your Iowa return. The adjustment is made on the IA 1040, line 24, code l, or IA 1120, Schedule A, line 12.

  • Under Section 124 of the Act

    The federal credit under IRC section 30B for purchases of new qualified fuel cell motor vehicles has been extended for such vehicles purchased in calendar years 2018, 2019, and 2020. Iowa is not conformed with this extension for tax years 2018 and 2019. Therefore, the $2,000 deduction under Iowa Code 422.7(45) for vehicles qualifying for the federal credit does not apply for tax years 2018 and 2019, if the vehicle was purchased in calendar years 2018, 2019, or 2020.

    • Iowa treatment for Tax Year 2018: Taxpayers who already filed a 2018 Iowa income tax return should not file an amended Iowa return because of this federal change.  If a taxpayer files an original 2018 Iowa income tax return, the taxpayer should not claim the $2,000 Iowa deduction for any qualifying vehicle purchased in calendar years 2018 or 2019 and placed in service in tax year 2018.

    • Iowa treatment for Tax Year 2019: Taxpayers should not claim the $2,000 Iowa deduction for any qualifying vehicle purchased in calendar years 2018, 2019, or 2020, and placed in service in tax year 2019.