Iowa Biodiesel Blended Fuel Tax Credit 41-149

Biodiesel Blended Fuel Tax Credit 41-149
IA 8864 Iowa Biodiesel Blended Fuel Tax Credit (41149)
2023 IA 8864

Iowa Biodiesel Blended Fuel Tax Credit
tax.iowa.gov
Name(s):___________________________________________________________________________
Social Security Number (SSN) or Federal Employer Identification Number (FEIN): _______________
Pass-through entity legal name (if applicable): _____________________________________________
Pass-through FEIN: ____________________________ Tax period ending date: _________________
1. Total number of biodiesel fuel gallons containing a minimum of 11% to 19%
pure biodiesel sold at retail in Iowa during the tax year .......................................... 1. ______________
2. Biodiesel Blended Fuel Tax Credit for B11-B19 blends. Multiply line 1 by the
tax credit rate per gallon of $0.05 (five cents) ......................................................... 2. ______________
3. Total number of biodiesel fuel gallons containing a minimum of 20% to 29%
pure biodiesel sold at retail in Iowa during the tax year .......................................... 3. ______________
4. Biodiesel Blended Fuel Tax Credit for B20-B29 blends. Multiply line 3 by
the tax credit rate per gallon of $0.07 (seven cents) ............................................... 4. ______________
5. Total number of biodiesel fuel gallons containing a minimum of 30% pure
biodiesel sold at retail in Iowa during the tax year .................................................. 5. ______________
6. Biodiesel Blended Fuel Tax Credit for B30 plus blends. Multiply line 5 by the
tax credit rate per gallon of $0.10 (ten cents) .......................................................... 6. ______________
7. Biodiesel Blended Fuel Tax Credit. Add lines 2, 4, and 6. See Where to Report
This Tax Credit in instructions ................................................................................. 7. ______________
8. Pass-Through Biodiesel Blended Fuel Tax Credit from partnership, limited
liability company (LLC), S corporation, estate, or trust. See Where to
Report This Tax Credit in instructions ..................................................................... 8. ______________
Include this form with your return.

41-149a (07/24/2023)

2023 IA 8864 Instructions, page 1
What’s New for Tax Year 2023
2022 Iowa Acts chapter 1067 (House File 2128)
modified the Biodiesel Blended Fuel Tax Credit
for biodiesel blended fuel sold on or after January
1, 2023. This will impact retail dealers who sell
biodiesel blended fuel at retail in Iowa on or after
January 1, 2023. The tax credit rates have been
changed to the following beginning on January 1,
2023:
• $0.05 (five cents) per gallon sold at retail in
Iowa for B11-B19 blends. Gallons rated below
B-11 no longer qualify for Biodiesel Blended
Fuel Tax Credit.
• $0.07 (seven cents) per gallon sold at retail in
Iowa for B20-B29 blends.
• $0.10 (ten cents) per gallon sold at retail in
Iowa for B30 and higher blends.
About the Biodiesel Blended Fuel Tax Credit
An Iowa Biodiesel Blended Fuel Tax Credit is
available to retail dealers of diesel who operate
fuel pumps at an Iowa retail fuel site. Tank
wagons are considered retail fuel sites. To qualify
for the tax credit, retail dealers must sell biodiesel
blended fuel with a minimum percentage of 11 by
volume of biodiesel on or after January 1, 2023.

to the entity’s total earnings. Special allocations
are not permitted. Report the tax credit to the
Department and members as instructed (see
Where to Report This Tax Credit).
If the taxpayer has received any Biodiesel
Blended Fuel Tax Credit from a pass-through
entity, indicate that amount on line 8 of the IA
8864. See Where to Report This Tax Credit.
File a separate IA 8864 for each pass-through
Biodiesel Blended Fuel Tax Credit received and
provide the required information regarding the
pass-through entity.
Any tax credit in excess of tax liability can be
refunded or credited to tax liability for the following
year.
Include this form and the IA 148 with your IA 1040,
IA 1041, or IA 1120.
Include this form with your IA 1065 or IA 1120S.

For gallons sold on or after January 1, 2023, the
tax credit equals five cents multiplied by the total
number of gallons of biodiesel blended fuel with
11% to 19% biodiesel, seven cents multiplied by
the total number of gallons of biodiesel blended
fuel with 20% to 29% biodiesel, and ten cents
multiplied by the total number of gallons of
biodiesel blended fuel with 30% or higher
biodiesel.
See Iowa Code section 422.11P and Iowa
Administrative Code rules 701—304.34 and
501.31 for more information.
Claiming This Tax Credit
Provide your name, Social Security Number
(SSN) or Federal Employer Identification Number
(FEIN), and tax period ending date.
If the retailer is a pass-through entity (partnership,
limited liability company, S corporation, estate, or
trust), the tax credit is allocated to the members.
The tax credit allocation must be in the ratio of
each member’s share of the earnings of the entity
41-149b (07/24/2023)

2023 IA 8864 Instructions, page 2
Where to Report This Tax Credit
Iowa Form:

Enter amounts
from lines 7
and 8 on:

1040
1120
1041
(amounts
claimed at
entity level)
1041
(amounts
allocated to
beneficiaries)

IA 148
Tax Credits
Schedule

•
IA 1041
Schedule K-1

•
•

and
IA 1065
Schedule K-1
IA 1120S
Schedule B

1120S

•
•

IA 1065
Schedule B
1065

Additional instructions:

•
•

and
IA 1120S
Schedule K-1

•

Report line 7 and line 8 amounts on the IA 148, Part II, using tax credit
code 52. List each tax credit claim earned or received separately.
For line 8 amounts from another pass-through entity, report required
information about the pass-through entity on the IA 148, Part IV. List each
pass-through tax credit claim separately.

Report the allocated share of line 7 and line 8 amounts on each
beneficiary’s IA 1041 Schedule K-1 using tax credit code 52. List each tax
credit claim earned or received separately.
Instruct beneficiaries to report their allocated tax credit on line 8 of form IA
8864 and include the IA 8864 with their tax return.
Report line 7 and line 8 amounts on the IA 1065 Schedule B as earned by
the entity (line 7) or received from another pass-through entity (line 8) and
use tax credit code 52. Also, report each member’s allocated share of the
tax credit on the IA 1065 Schedule K-1 using tax credit code 52. List each
tax credit claim earned or received separately on the Schedule B and
Schedule K-1.
Instruct members to report their allocated tax credit on line 8 of form IA
8864 and include the IA 8864 with their tax return.
Report line 7 and line 8 amounts on the IA 1120S Schedule B as earned by
the entity (line 7) or received from another pass-through entity (line 8) and
use tax credit code 52. Also, report each member’s allocated share of the
tax credit on the IA 1120S Schedule K-1 using tax credit code 52. List each
tax credit claim earned or received separately on the Schedule B and
Schedule K-1.
Instruct members to report their allocated tax credit on line 8 of form IA
8864 and include the IA 8864 with their tax return.

41-149c (07/24/2023)