1. Research Activities Credit (RAC) – Iowa tax incentive for qualifying research expenditures.
  2. Iowa Code § 422.33(5) (Corporate Tax) – Statute governing corporate research tax credits.
  3. Iowa Code § 422.10 (Individual Tax) – Statute governing individual research tax credits.
  4. Iowa Department of Revenue (IDOR) – State agency administering Iowa tax laws.
  5. Qualified Research Expenses (QREs) in Iowa – Eligible costs for calculating the research credit.
  6. Internal Revenue Code (IRC) § 41 – Federal law defining qualified research activities.
  7. Federal Alignment (Claiming IRC § 41 Credit) – Iowa rules mirroring federal research credit standards.
  8. Base Amount (for Regular Credit) – Benchmark for measuring incremental research spending.
  9. Fixed-Base Percentage – Ratio of historical research expenses to receipts.
  10. Average Annual Gross Receipts (4 Preceding Years) – Revenue average used for base amount calculation.
  11. Incremental Research Expenditures – Research spending exceeding the calculated base amount.
  12. Regular Credit Method (6.5% Rate) – Standard calculation method using 6.5% rate.
  13. Alternative Simplified Credit (ASC) – Optional calculation method without gross receipts data.
  14. ASC Rate (4.55% of excess QREs) – Alternative method rate applied to excess QREs.
  15. Basic Research Payments – Payments to universities for scientific research advancement.
  16. Iowa Apportioned Share – Portion of credit allocated to Iowa activity.
  17. Supplemental Research Activities Tax Credit – Additional credit awarded by economic development authority.
  18. Iowa Economic Development Authority (IEDA) – Agency granting supplemental research tax credits.
  19. High Quality Jobs (HQJ) Program – Program offering tax incentives for job creation.
  20. Enterprise Zone (EZ) Program (Prior Supplemental Credit Source) – Expired zone-based incentive program for businesses.
  21. Refundable Credit (Subject to Phase-Down Limits) – Excess credit paid out as tax refund.
  22. Refundable Portion Percentage (e.g., 80% for 2024) – Percentage of excess credit eligible for refund.
  23. Unused Credit (Credited to Following Year) – Credits carried over to next tax year.
  24. No Carryforward (for refundable excess) – Refundable portion cannot be carried forward.
  25. Tax Credit Certificate Number (for Supplemental Credit) – Unique ID required to claim supplemental credits.
  26. Schedule IA 128 (Regular Credit Form) – Form for claiming the Regular Research Credit.
  27. Schedule IA 128S (Alternative Simplified Credit Form) – Form for claiming Alternative Simplified Research Credit.
  28. Pass-Through Entity (PTE) – Business passing income directly to owners.
  29. Pro Rata Share of Earnings (PTE Allocation) – Proportional distribution of income to shareholders.
  30. Wages for Qualified Services (in Iowa) – Compensation for employees performing research in Iowa.
  31. Cost of Supplies (Phase-Out Limitation) – Expenses for items consumed during research process.
  32. Supplies Phase-Out Percentage (e.g., 60% for 2024) – Reduces eligible supply costs over time.
  33. Rental/Lease Cost of Personal Property (Disallowed Post-2022) – Excluded costs for renting equipment or computers.
  34. Contract Research Expenses (65% in Iowa) – Allowable portion of payments to third-party researchers.
  35. Qualified Research (IRC § 41(d) Four-Part Test) – Activities meeting federal tests for research credit.
  36. Technological in Nature – Research relying on hard science principles.
  37. Elimination of Uncertainty – Research intended to discover unknown information.
  38. Process of Experimentation – Systematic trial and error to verify hypotheses.
  39. Substantially All Rule (Disallowed Post-2022) – Rule often requiring 80% of activity qualification.
  40. New or Improved Business Component – Product or process created or enhanced.
  41. Manufacturing (Qualifying Industry) – Production of goods eligible for research credits.
  42. Life Sciences (Qualifying Industry) – Biology and medicine fields eligible for credits.
  43. Agriscience (Qualifying Industry) – Agricultural science research eligible for tax credits.
  44. Software Engineering (Qualifying Industry) – Software development eligible for research tax credits.
  45. Aviation or Aerospace (Qualifying Industry) – Flight technology research eligible for tax credits.
  46. Ineligible Businesses (e.g., Retailer, Wholesaler) – Industries excluded from claiming research credits.
  47. Annual Gross Revenue Threshold ($20 Million for Supplemental Rate) – Revenue limit for specific credit rates.
  48. Renewable Energy Components Research Activities Credit – Incentive for research in renewable energy parts.
  49. Senate File 657 (Future Repeal Legislation) – Law phasing out certain research credit provisions.
  50. Taxable Year – Fiscal period for reporting tax liabilities.