Quick Answer: Manufacturing in the context of the Iowa Research Activities Tax Credit (RAC) refers to activities involving the transformation of raw materials into new products. To qualify, [...]

ANSWER CAPSULE: The “New or Improved Business Component” (BC) is a fundamental requirement for qualifying for the Iowa Research Activities Tax Credit (RAC). A Business Component is [...]

Answer Capsule: To claim the Iowa Research Activities Tax Credit (RAC), businesses must satisfy the federal IRC § 41(d) Four-Part Test for qualified research—demonstrating technological [...]

Answer Capsule: Effective for tax years beginning on or after January 1, 2023, Iowa law strictly disallows the rental or lease cost of personal property as Qualified Research Expenditures (QREs) [...]

Answer Capsule: The Iowa R&D Tax Credit Supplies Phase-Out Percentage is a crucial compliance requirement that limits the eligible qualified research supply costs. For the 2024 tax year, [...]

What is the Pro Rata Share of Earnings for the Iowa R&D Tax Credit? The Pro Rata Share of Earnings (PTE Allocation) is the mandatory statutory ratio used by Iowa pass-through entities (such [...]

Quick Answer: Pass-Through Entities (PTEs) such as S-corporations and partnerships in Iowa can calculate the Iowa Research Activities Tax Credit at the entity level and allocate it to their [...]

What is the Iowa Schedule IA 128S? The Iowa Schedule IA 128S is the dedicated tax form used by eligible businesses to calculate the Iowa Alternative Simplified Research Activities Tax Credit [...]

Answer Capsule: Schedule IA 128 is the statutory tax form utilized by eligible Iowa businesses to compute and claim the refundable 6.5% Regular Research Activities Tax Credit. It relies on a [...]