Iowa Franchise Tax Credit 41-147

Franchise Tax Credit 41-147
IA 147 Franchise Tax Credit, 41-1472023 IA 147

Iowa Franchise Tax Credit
tax.iowa.gov
Shareholder name(s):__________________________________________________________________
Social Security Number (SSN) or Federal Employer Identification Number (FEIN): __________________
Financial institution name: _________________________ Financial institution FEIN:________________
PART I – Income
1. Enter income from 2023 IA 1040, line 4, or 2023 IA 1120, line 13,
or 2023 IA 1041, line 25............................................................................................ 1. _____________
2. Enter shareholder’s pro rata share of the financial institution’s net income.
Multiply the shareholder’s ownership percentage by the amount on the
IA 1120S, line 21....................................................................................................... 2. _____________
3. Income less pass-through income from financial institution. Subtract line 2 from
line 1. If zero or less, enter zero ............................................................................... 3. _____________
PART II – Income Tax without Financial Institution Income
4. Calculate the tax liability using the amount on line 3 with the appropriate
2023 tax rate schedule or percentage based on the return type
(IA 1040, IA 1120, or IA 1041) ............................................................................ 4. _____________
5. Enter any lump sum tax from the 2023 IA 1040, line 6,
or 2023 IA 1041, line 28 ...................................................................................... 5. _____________
6. Add lines 4 and 5 ................................................................................................ 6. _____________
7. Enter the amount of credits from 2023 IA 1040, line 11, or
2023 IA 1041, line 32 .......................................................................................... 7. _____________
8. Subtract line 7 from line 6. If zero or less, enter zero .......................................... 8. _____________
PART III – Income Tax on All Income
9. Enter tax from 2023 IA 1040, line 5, 2023 IA 1120, line 14, or
2023 IA 1041, line 31 minus line 28 .................................................................... 9. _____________
10. Total income tax liability. Add lines 5 and 9 ...................................................... 10. ____________
11. Subtract line 7 from line 10. If zero or less, enter zero ...................................... 11. ____________
PART IV – Calculation of Franchise Tax Credit
12. Income tax on financial institution income. Subtract line 8 from line 11.
If zero or less, enter zero .................................................................................. 12. ____________
13. Shareholder’s pro rata share of the financial institution’s franchise tax liability
minus any tax credits claimed. Enter one of the following amounts, as applicable:
(a) Subtract 2022 IA 1120F, line 14, from 2022 IA 1120F, line 13, then multiply
that amount by the shareholder’s percentage of ownership in the S corporation.
If zero or less, enter zero.
(b) Multiply 2023 IA 1120F, line 14, by the shareholder’s percentage
of ownership in the S corporation. If zero or less, enter zero ............................ 13. ____________
14. Franchise Tax Credit. Enter the smaller of line 12 or line 13. Enter in
column D of Part I on the 2023 IA 148 Tax Credits Schedule ........................... 14. ____________
IA 148 Tax Credits Schedule must be completed.
41-147a (12/15/2023)

2023 IA 147 Instructions
Purpose of Form
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, to have its income taxed directly
to shareholders, those shareholders who are
individuals (IA 1040 filers), fiduciaries (IA 1041
filers), or entities subject to the Iowa corporation
income tax (IA 1120 filers) may qualify for a
Franchise Tax Credit. The tax credit cannot
exceed the shareholder’s pro rata share of the
Iowa franchise tax paid by the financial
institution.
To complete this form, you will need information
from the 1120F and 1120S filed by the financial
institution. This information must be included
with your IA 1120S Schedule K-1. If the financial
institution did not provide the required
information with your IA 1120S Schedule K-1,
you are not eligible to claim the franchise tax
credit. You will also need your IA 1040, IA 1120,
or IA 1041.
Instructions
Line 2: Share of financial institution income
Multiply your ownership percentage in the S
corporation by the S corporation’s total income
as modified for Iowa tax purposes, which is the
amount reported on IA 1120S, Part 4, line 21.
Line 6: Potential income tax
The sum of lines 4 and 5 represents your income
tax liability owed on all income except your share
of the financial institution’s income.
Line 8: Income tax without financial institution
income
The difference between lines 6 and 7 represents
your income tax liability minus designated tax
credits on your income without your share of the
financial institution income.

Line 11: Income tax on all income
The difference between lines 10 and 7
represents your income tax liability on all income
minus designated tax credits.
Line 13: Shareholder’s pro rata share of
franchise tax
Enter your share of the financial institution’s net
franchise tax liability. If your financial institution’s
tax year began in 2022, this is the amount of
franchise tax liability reported on 2022 IA 1120F,
line 13, minus any tax credits claimed by the
financial institution on 2022 IA 1120F, line 14,
multiplied by your ownership percentage. If your
financial institution’s tax year began in 2023, this
is the amount of the franchise tax liability
reported on 2023 IA 1120F, line 14, multiplied by
your ownership percentage. If zero or less, enter
zero.
Line 14: Franchise Tax Credit
The Franchise Tax Credit that can be claimed
against your income tax is the smaller of the
income tax you owe on your share of the financial
institution’s income or your share of the franchise
tax paid by the financial institution. Enter the
smaller of the amount on line 12 or line 13 of this
form.
Enter this amount in column D of Part I on the
2023 IA 148 Tax Credits Schedule; use tax credit
code 04 in column A and leave column B blank.
Any credit in excess of the tax liability cannot be
carried forward and should be entered as expired
in column G of the IA 148.
File a separate IA 147 for each Franchise Tax
Credit received. Each Franchise Tax Credit must
be reported on a separate line in Part I of the
2023 IA 148 Tax Credits Schedule. Include the
financial institution name in column M and the
FEIN in column N of Part IV of the IA 148.
Include this form with your IA 1040, IA 1041, or IA
1120.

41-147b (08/11/2023)

Extracted from PDF file 2023-iowa-form-ia-147.pdf, last modified December 2023

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More about the Iowa Form IA 147 Corporate Income Tax Tax Credit TY 2023

We last updated the Franchise Tax Credit 41-147 in January 2024, so this is the latest version of Form IA 147, fully updated for tax year 2023. You can download or print current or past-year PDFs of Form IA 147 directly from TaxFormFinder. You can print other Iowa tax forms here.

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Other Iowa Corporate Income Tax Forms:

TaxFormFinder has an additional 43 Iowa income tax forms that you may need, plus all federal income tax forms.

Form Code	Form Name
Form IA 148	Tax Credits Schedule 41-148 Tax Credit
Form IA 1120S Shhedule K-1	Schedule K-1 - Shareholder’s Share of Iowa Income, Deductions, Modifications
Form IA 1041V	Iowa Fiduciary Income Tax Payment Voucher Voucher
IA 1041-C	Schedule C Computation of Nonresident's Tax Credit Tax Credit
Form IA 1041	Fiduciary Return 63-001 Tax Return

Download all IA tax forms View all 44 Iowa Income Tax Forms

Form Sources:

Iowa usually releases forms for the current tax year between January and April. We last updated Iowa Form IA 147 from the Department of Revenue in January 2024.

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Form IA 147 is an Iowa Corporate Income Tax form. States often have dozens of even hundreds of various tax credits, which, unlike deductions, provide a dollar-for-dollar reduction of tax liability. Some common tax credits apply to many taxpayers, while others only apply to extremely specific situations. In most cases, you will have to provide evidence to show that you are eligible for the tax credit, and calculate the amount of the credit to which you are entitled.

About the Corporate Income Tax

The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.

Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).

Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.

Historical Past-Year Versions of Iowa Form IA 147

We have a total of twelve past-year versions of Form IA 147 in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:

2023 Form IA 147