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Iowa Iowa Alternative Simplified Research Activities Credit 41-124
Extracted from PDF file 2023-iowa-form-ia-128s.pdf, last modified July 2022Iowa Alternative Simplified Research Activities Credit 41-124
2023 IA 128S Iowa Alternative Simplified Research Activities Tax Credit tax.iowa.gov Name(s) Social Security Number (SSN) or Federal Employer Identification Number (FEIN) Industry in which researching business is engaged (see instructions) Pass-through entity (if applicable) Pass-through FEIN Tax Period End Date M M D D Y Y Y Y PART I - Eligibility 1a. Are you only filing this IA 128S to claim a pass-through credit received from another entity? Yes Continue to Part III, line 32 No Continue to 1b. 1b. Are you an ineligible business? (see Industry in which the researching business is engaged – ineligible businesses in instructions) Yes You are not eligible for the Iowa Research Activities Tax Credit (RAC). Stop. No Continue to 1c. 1c. Did you claim the federal research credit for this same tax year? Yes Continue to 1d. No You are not eligible for the Iowa RAC. Stop. 1d. Did you or will you file an IA 128S claiming an Iowa RAC on Part III, line 29 or 30 by the due date of your original return, including extensions? Yes Continue to 1e. No You are not eligible for the Iowa RAC. Stop. 1e. If this is an amended IA 128S to increase your Iowa RAC for this tax year, are you filing this amended IA 128S either 1) within six months of the due date of your original return, including extensions; or 2) because your Iowa RAC claim was increased by a federal Internal Revenue Service audit or Iowa Department of Revenue audit? Not Applicable Continue to Part II, line 2. Yes Continue to Part II, line 2. No You are not eligible to increase your Iowa RAC. Stop. 41-124a (08/29/2023) 2023 IA 128S, page 2 SSN or FEIN Use Dollars and Cents PART II - Background Information - U.S. qualified research expenses 2. Certain amounts paid or incurred to energy consortia...................................................................... 3. Basic research payments to qualified organizations......................................................................... 4. Qualified organization base period amount....................................................................................... 5. Wages for qualified research services............................................................................................... 6. Cost of supplies used in conducting qualified research.................................................................... 7. Rental or lease costs of computers used in conducting qualified research....................................... 8. Applicable portion of contract research expenses............................................................................. 9. Average U.S. annual gross receipts for tax years 2019 through 2022.............................................. 2 00 3 00 4 00 5 00 6 00 7 00 8 00 9 00 10 00 11 00 12 00 13 00 14 00 15 00 16 00 17 00 18 00 19 00 20 00 21 00 22 00 PART III – Calculation of Tax Credit Based on Iowa Qualified Research Expenses 10. Basic research payments to qualified organizations in Iowa............................................................. 11. Iowa apportioned qualified organization base period amount........................................................... 12. Subtract line 11 from line 10. If zero or less, enter zero.................................................................... 13. Multiply line 12 by 6.5% (0.065)........................................................................................................ 14. Wages for qualified research services performed in Iowa................................................................. 15. Non-qualifying Iowa wages. See instructions................................................................................... 16. Qualifying Iowa wages. Subtract line 15 from line 14........................................................................ 17. Cost of supplies used in conducting qualified research in Iowa........................................................ 18. Eligible cost of Iowa supplies. Multiply line 17 by 80% (.80)............................................................. 19. Applicable portion of contract research expenses incurred in Iowa.................................................. 20. Non-qualifying Iowa contract research expenses. See instructions.................................................. 21. Qualifying Iowa contract research expenses. Subtract line 20 from line 19...................................... 22. Total Iowa qualified research expenses. Add lines 16, 18, and 21.................................................... Include this form with your return. 41-124b (08/29/2023) 2023 IA 128S, page 3 SSN or FEIN Use Dollars and Cents PART III – Calculation of Tax Credit Based on Iowa Qualified Research Expenses (continued) 23. Unadjusted total qualified research expenses in Iowa for the prior three years. If you had no qualified research expenses in Iowa during any one of those years, enter zero and skip lines 24 through 27.................................................................................................................... 24. Allowable adjustment to total prior-year qualified research expenses in Iowa. See instructions................................................................................................................................. 25. Adjusted total qualified research expenses in Iowa for the prior three years. Subtract line 24 from line 23.............................................................................................................. 26. Divide line 25 by six (6.0).................................................................................................................. 27. Subtract line 26 from line 22. If zero or less, enter zero.................................................................... 28. Multiply line 27 by 4.55% (.0455). If you skipped lines 24 through 27, multiply line 22 by 1.95% (.0195).................................................................................................................................... 29. Iowa Alternative Simplified RAC. Add lines 13 and 28. If you are computing the credit as a controlled group or group of businesses under common control per Internal Revenue Code section 41(f)(1), complete Schedule A and proceed to line 30. Otherwise, this is your tax credit. See Where to Report this Tax Credit in instructions.......................................................................... 30. Share of Iowa Alternative Simplified RAC for members of a controlled group or group of businesses under common control. Enter your share of the Iowa Alternative Simplified RAC from Schedule A, Column E. See Where to Report this Tax Credit in instructions.......................................................................... 23 00 24 00 25 00 26 00 27 00 28 00 29 00 30 00 31 00 32. Pass-through Iowa Alternative Simplified RAC received from partnership, LLC, S corporation, estate, or trust. See where to Report this Tax Credit in instructions.......................... 32 00 33. Pass-through Iowa Supplemental RAC received from partnership, LLC, S corporation, estate, or trust. See Where to Report this Tax Credit in instructions................................................. 33 00 31. Iowa Supplemental RAC. See Where to Report this Tax Credit in instructions................................. Schedule A - Members of controlled group or group of businesses under common control A B Name FEIN C D Iowa qualified research expenses (QREs) % Share of Total Iowa QREs E Share of Iowa Alternative Simplified RAC. Column D x Part III, line 29 00 % 00 00 % 00 00 % 00 00 % 00 00 % 00 00 % 00 00 % 00 00 % 00 Totals............... Include this form with your return. 41-124c (08/29/2023) 2023 IA 128S Instructions, page 1 What’s new for Tax Year 2023 Who must file this form 2022 House File 2317 enacted several changes to the Iowa Research Activities Credit (RAC) that apply to tax years beginning on or after January 1, 2023. These changes include: Taxpayers who claim the Alternative Simplified Research Activities Tax Credit must use the IA 128S. Taxpayers who claim the regular Research Activities Tax Credit must use the IA 128. The taxpayer must use the same method used in computing the federal research credit for the tax year. • • • • • Researching businesses have new time restrictions on claiming or increasing the Iowa RAC. See When and How to File this Form below for additional information. Researching businesses must use the same method (regular method or alternative simplified method) to calculate their Iowa RAC as they elected or were required to use in calculating their federal research credit. Expenses for the use of a third party’s computers in the conduct of qualified research under Internal Revenue Code section 41(b)(2)(A)(iii) no longer qualify as Iowa qualified research expenses. New restrictions apply to the calculation of Iowa qualified research expenses for wages paid to an employee. See the Line 15 instructions for additional information. New restrictions apply to the calculation of Iowa qualified research expenses for contract research expenses. See the line 20 instructions for additional information. • For tax year 2023, only 80% of the amounts paid for supplies related to research performed in Iowa will qualify as Iowa qualified research expenses. This allowable percentage will decrease in the future. • For tax year 2023, a taxpayer may only receive a refund for 90% of the amount of the Iowa RAC, and 95% of the Iowa Supplemental RAC, that exceeds the taxpayer’s Iowa tax liability. These allowable refund percentages will decrease in the future. Any credit amount that exceeds these refund limitations for the tax year cannot be carried forward to another tax period. This form also includes new procedures for calculating and reporting the Iowa RAC for businesses that compute the federal research credit as a controlled group or as a group of businesses under common control per Internal Revenue Code (IRC) section 41(f) (1). These businesses must complete Schedule A to report certain information about all members of the group, and report their share of the Iowa RAC on Part III, line 30. 41-124d (08/29/2023) Research expenses qualified for the Iowa RAC are based on the rules governing the federal research tax credit under IRC section 41 with certain adjustments required under Iowa law. A taxpayer may only claim the Iowa RAC if the business conducting the research does all of the following: • Timely files an IA 128 or IA 128S. See When and How to File this Form below. • Claims and is allowed the federal research credit for the same taxable year. • Is engaged in in an eligible industry in Iowa. See Industry in Which the Researching Business is Engaged–Ineligible Businesses below. The Iowa credit equals 4.55% of increased research expenses plus 6.5% of increased basic research expenses in Iowa. When and how to file this form A taxpayer may only claim the Iowa RAC if the business conducting the qualified research properly files an IA 128S claiming a credit amount on Part III, line 29 or 30, by the due date of the researching business’s Iowa tax return, including extensions. If properly claimed, the researching business may only increase its Iowa RAC claim under two circumstances: 1. The increased Iowa RAC claim is filed within six months of the due date of the researching business’s Iowa return, including extensions; or 2. The increased Iowa RAC claim results from a federal Internal Revenue Service audit or an Iowa Department of Revenue audit. These limitations do not apply to Iowa RAC reductions. If the researching business, or a pass-through claimant, discovers that their Iowa RAC claim was overstated, the taxpayer must reduce that Iowa RAC claim on an amended Iowa return. Include this form, the Federal 6765, and the 2023 IA 148 Tax Credits Schedule with your IA 1040, IA 1041, or IA 1120. 2023 IA 128S Instructions, page 2 Include this form and the Federal 6765 with your IA 1065 or IA 1120S. Industry in which the researching business is engaged – ineligible businesses You must report the industry in which the business conducting the research is engaged. A taxpayer may only claim the Iowa RAC if the business conducting the qualified research is engaged in manufacturing, life sciences, agriscience, software engineering, or the aviation and aerospace industry. For definitions of these industries, please see Iowa Administrative Code rule 701—304.11. Ineligible businesses include, but are not limited to, those engaged in agricultural production, an agricultural cooperative, a finance or investment company, a retailer, a wholesaler, a publisher, a transportation company, a real estate company, a collection agency, an accountant, an architect, a contractor, a subcontractor, or a builder, or a business that engages in commercial and residential repair and installation including but not limited to heating or cooling installation and repair, plumbing and pipe fitting, security system installation, and electrical installation and repair. Innovative renewable energy generation Under the High-Quality Jobs Program, taxpayers may be awarded an Iowa RAC for the development and deployment costs of innovative renewable energy generation components manufactured or assembled in Iowa. This cannot include components with more than 200 megawatts of installed effective nameplate capacity. These costs are not eligible for the federal research tax credit. A separate IA 128S must be completed to account for these costs, which can be included on line 14 of the separate form. The amount of the additional tax credit relating to these costs is not eligible for the Iowa Supplemental RAC. Example: An eligible business with annual gross receipts of $20 million or less earns an Iowa Alternative Simplified RAC of $50,000, excluding any costs relating to innovative renewable energy generation components. The business is allowed a supplemental tax credit of $76,923, which would result in an Iowa tax credit of $126,923. The Iowa RAC related to innovative renewable energy generation components is $25,000. This can be added to the regular and supplemental tax credit, resulting in a total Iowa Alternative Simplified RAC of $151,923. 41-124e (08/29/2023) Trades or businesses under common control For a controlled group or a group of trades or businesses under common control (whether or not incorporated), the Iowa Alternative Simplified RAC is calculated as if all the organizations are one trade or business in accordance with IRC section 41(f)(1). The tax credit calculated for the group must be shared among the members of the group on the basis of each member’s proportionate contribution to the increase in research expenses. For more information, see the instructions below for line 30 and for Schedule A. Adjustments dispositions for certain acquisitions and If a major portion of a trade or business is acquired or disposed of, adjustments must be made to research expenses for the period before or after the acquisition or disposition. Short tax year For any short tax year, qualified research expenses are annualized. Pass-Through Entities – allocation of tax credit The tax credit calculated on lines 2 through 30 by a pass-through entity (partnership, LLC, S corporation, estate, or trust) 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 to the entity’s total earnings. Special allocations are not permitted. The pass-through entity must file the IA 128S and the Federal 6765 with its return. Report the tax credit to the Department and to members as instructed below (see Where to Report This Tax Credit). If the taxpayer earns a tax credit by conducting research and is a member of a pass-through entity that has passed through a tax credit to the taxpayer, calculate the tax credit on the IA 128S, lines 2 through 30, and also enter the pass-through tax credit on line 32. Report each separately. Iowa Supplemental RAC Businesses with tax incentive contracts under the High-Quality Jobs Program can be awarded an Iowa Supplemental RAC by the Iowa Economic Development Authority (IEDA). The total available Iowa Supplemental RAC award is provided in the contract along with the tax credit certificate number. A business’s allowable Iowa supplemental RAC is the lesser of their available award from IEDA or their maximum Iowa supplemental RAC as described in this section. The maximum Iowa 2023 IA 128S Instructions, page 3 supplemental RAC is different depending on whether or not the business’s annual gross receipts (as reported on line 9) exceed $20 million. If gross receipts do not exceed $20 million: The maximum Iowa supplemental RAC is calculated by multiplying line 27 by 7% or line 22 by 3%, plus 10% of line 12. If the taxpayer is a member of a controlled group or group under common control, the maximum Iowa supplemental RAC must be determined by multiplying the result in the previous sentence by the taxpayer’s % share of total Iowa QREs from Schedule A, Column D. If gross receipts exceed $20 million: The maximum Iowa supplemental RAC is calculated by multiplying line 27 by 2.1% or line 22 by 0.9%, plus 3% of line 12. If the taxpayer is a member of a controlled group or group under common control, the maximum Iowa supplemental RAC must be determined by multiplying the result in the previous sentence by the taxpayer’s % share of total Iowa QREs from Schedule A, Column D. If the Iowa Supplemental is earned by a pass-through entity, report the supplemental RAC to the Department and to members as instructed below (see Where to Report This Tax Credit). you may be required to annualize gross receipts. See IRC sections 41(c)(1)(B) and 41(f)(4) and Treas. Reg. section 1.41-3 for details. Use this value to determine the calculation of the Supplemental RAC, if applicable. Line 10: Iowa basic research payments Corporations other than S corporations, personal holding companies, service organizations, LLCs, and partnerships, enter cash payments, pursuant to a written contract, made to a qualified university or scientific research organization in Iowa for basic research. See IRC section 41(e) for details. Line 11: Iowa base period amount Enter the qualified organization base period amount based on minimum basic research amounts for the preceding three years, see IRC section 41(e) for details. For purposes of apportionment, multiply the amount on line 4 by the quotient of the amount on line 10 divided by the amount on line 3 [i.e. line 4 x (line 10 / line 3)]. Line 14: Iowa expenses on research wages Enter any wages paid to an employee for qualified research services performed in Iowa. 2023 IA 128S instructions Line 15: Non-qualifying Iowa wages Provide your name, Social Security Number (SSN) or Federal Employer Identification Number (FEIN), tax period ending date, and industry. If you are claiming a tax credit amount received from a pass-through entity, enter the name and FEIN of the pass-through entity. From the total amount of Iowa wages entered on line 14, enter on this line the amount of any wages that must be excluded pursuant to the “majority work” or “substantially all” limitations described here. Line 1: Eligibility Even if a researching business meets the industry requirements under Iowa law noted above (see Industry in Which Researching Business is Engaged–Ineligible businesses), Iowa law imposes other requirements that must be satisfied before the researching business may claim an Iowa RAC. Answer questions 1a through 1e related to eligibility. Lines 2 through 8: U.S. qualified research expenses Enter amounts from the Federal Credit for Increasing Research Activities, federal form 6765. Lines 2-4 are the same as federal lines 18-20; lines 5-8 equal federal lines 24-27. Line 9: Average U.S. annual gross receipts. Enter the average U.S. annual gross receipts for the four tax years preceding the tax year for which the tax credit is being determined. For any short year 41-124f (08/29/2023) “Majority work” limitation. Wages paid to an employee for qualified research services performed in Iowa will only qualify as Iowa qualified research expenses if, during the period of the tax year that the business is engaging in one or more research projects, a majority (greater than 50%) of the total services performed by that employee are directly related to those research projects. Example: Taxpayer, a calendar year filer, engages in two qualified research projects during tax year 2023. Project 1 goes from January through March. Project 2 goes from November through February of 2024. This means the applicable period upon which this limitation is measured is the 5-month period of January through March and November through December. In order for Employee A’s wages for services performed in Iowa to qualify as Iowa qualified research expenses, Employee A must have spent a majority of that 5-month applicable period performing services that were directly related to the Taxpayer’s research projects. This is true even 2023 IA 128S Instructions, page 4 if Employee A only worked on Project 1. Employee A’s hours worked on Project 1 during January through March must be greater than 50% of the total hours worked by Employee A during the entire 5-month applicable period. “Substantially all” limitation. The “substantially all” rule for determining wages paid for qualified services, as described in IRC section 41(b)(2)(B) and Treas. Reg. section 1.41-2(d)(2), does not apply to the calculation of Iowa qualified research expenses. In other words, if an employee’s wages allocated to qualified services constitute at least 80% of the employee’s total wages during the tax year, the business is not permitted to round such wage allocation up to 100% for purposes of calculating Iowa qualified research expenses. Instead, the business must use the employee’s actual wage allocation. Line 17: Iowa expenses on research supplies Enter the amounts paid or incurred for supplies directly related to qualified research performed in Iowa. Line 18: Eligible cost of Iowa supplies For tax years beginning during 2023, Iowa law limits the eligible cost of Iowa supplies to 80% of the amount directly related to qualified research performed in Iowa. Multiply the amount on line 17 by 80% (.80). Line 19: Iowa contract research expenses Include 65% of qualified research performed on your behalf in Iowa. Use 75% for payments made to a qualified research consortium and 100% for payments made for qualified energy research performed by an eligible small business, university, or federal laboratory. Include payments to those same entities to the extent they are included as basic research payments on line 10, not to exceed the base period amount on line 11, subject to the 65% or 75% limitation. Line 20: Non-qualifying Iowa contract research expenses From the total amount of Iowa contract research expenses entered on line 19, enter on this line the amount of any expenses that must be excluded pursuant to the “majority work” limitation described here. 41-124g (08/29/2023) “Majority work” limitation. Contract research expenses paid to a third party for a person to perform qualified research services in Iowa will only qualify as Iowa qualified research expenses if, during the period of the tax year that the third party is performing research services for the taxpayer, a majority (greater than 50%) of the total services performed by that person for the third party are directly related to those research projects of the taxpayer. Example: Taxpayer, a calendar year filer, contracts with Third Party to do qualified research for Taxpayer. Third Party performs this qualified research for Taxpayer during January through June of the Taxpayer’s tax year. This means the applicable period upon which this limitation is measured is the 6-month period of January through June. Person A, who works for Third Party, performed qualified research services for Third Party pursuant to its contract with Taxpayer. In order for the contract payments applicable to Person A’s services in Iowa to qualify as Iowa qualified research expenses, Person A must have spent a majority of the 6-month applicable period performing services that were directly related to the qualified research that Third Party was doing for Taxpayer under contract. Line 23: Prior research Enter the total qualified research expenses in Iowa for the three years before the year in which the tax credit is being determined. If you had no qualified research expenses in Iowa during any one of the prior three years, enter zero. For example, if you had qualified research expenses in Iowa during 2020 and 2022 but did not do research in Iowa during tax year 2021, enter zero. For any short year, see Treas. Reg. section 1.419(c)(3)(i). 2023 IA 128S Instructions, page 5 Line 24: Allowable adjustment to prior research Line 32: Pass-through Iowa Alternative Simplified RAC From the total amount of prior-year qualified research expenses in Iowa entered on line 23, enter on this line the allowable adjustment to those expenses. Iowa law permits you to adjust your prior-year qualified research expenses in Iowa by taking into account the following limitations that also apply to current-year qualified research expenses in Iowa: If the taxpayer has received any pass-through Iowa Alternative Simplified RAC from a partnership, LLC, S corporation, estate, or trust, indicate that amount on this line. File a separate IA 128S for each pass-through Iowa Alternative Simplified RAC received, and provide the required information regarding the pass-through entity. See Where to Report This Tax Credit below. • Line 33: Pass-through Supplemental RAC Prior-year qualifying Iowa wage expenses that did not meet the “majority work” limitation or the “substantially all” limitation described on line 15 may be excluded. • Prior-year qualifying rental or lease costs of computers in conducting qualified research in Iowa may be excluded. • 20% of prior-year qualifying Iowa supplies expenses may be excluded. • Prior-year qualifying Iowa contract research expenses that did not meet the “majority work” limitation described on line 20 may be excluded. Line 29: Iowa Alternative Simplified RAC Add lines 13 and 28. If you are computing the credit as a controlled group or group of businesses under common control per IRC section 41(f)(1), complete Schedule A and proceed to line 30. Otherwise, this is your tax credit. See Where to Report This Tax Credit below. Line 30: Share of Iowa RAC for members of a controlled group or group of businesses under common control For a group member filing this IA 128S, enter on this line that group member’s share of the Iowa RAC from Schedule A, Column E. This is that group member’s tax credit. See Where to Report This Tax Credit below. Line 31: Supplemental RAC If you have a Supplemental RAC award from IEDA and earned a Supplemental RAC, indicate the amount earned on this line, not to exceed the maximum awarded amount. See above for information on calculating the Supplemental RAC. See Where to Report This Tax Credit below. 41-124h (08/29/2023) If the taxpayer has received any pass-through Supplemental Alternative Simplified RAC from a partnership, LLC, S corporation, estate, or trust, indicate that amount on this line. File a separate IA 128S for each pass-through Supplemental RAC received, and provide the required information regarding the passthrough entity. See Where to Report This Tax Credit below. Schedule A Instructions A taxpayer computing the Iowa RAC as a controlled group or group of businesses under common control per IRC section 41(f)(1) must complete Schedule A and include the relevant information for each member of the group. Columns A and B: Enter the name and FEIN of each member of the group on separate rows. Column C: Enter the Iowa qualified research expenses (QREs) for each group member, and sum the Column C amounts for all group members in the “Totals” field. The sum of the total Iowa QREs in Column C must equal the total Iowa qualified research expenses in Part III, line 22. Column D: For each group member, divide the member’s Iowa QREs from the applicable row in Column C by the Total Iowa QREs for Column C. Enter this as a percentage rounded to the nearest hundredth of a percent (ex. 72.18%). Sum the Column D percentages for all group members in the “Totals” field. The sum of the total percentages in Column D must equal 100%. Column E: For each group member, multiply the member’s % share of total Iowa QREs from Column D by the Iowa RAC reported in Part III, line 29. The group member filing this IA 128S must enter their share of the Iowa RAC from Column D on Part III, line 30. 2023 IA 128S Instructions, page 6 Where to Report This Tax Credit: Iowa Form: Enter amounts from lines 29 (or 30), 31, 32, or 33 on: • Report line 29 (or 30) and 32 amounts on the IA 148, Part V, using tax credit code 58. List each tax credit claim earned or received separately. 1040 1120 1041 (amounts claimed at entity level) Additional Instructions: IA 148 Tax Credits Schedule • Report line 31 and 33 amounts on the IA 148, Part V, using tax credit code 59 and the tax credit certificate number from the tax credit certificate issued by IEDA. List each tax credit claim earned or received separately. • For line 32 and 33 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 29 (or 30) and 32 amounts on each beneficiary’s IA 1041 Schedule K-1 using tax credit code 58. List each tax credit claim earned or received separately. 1041 (amounts allocated to beneficiaries) IA 1041 Schedule K-1 • Report the allocated share of line 31 and 33 amounts on each beneficiary’s IA 1041 Schedule K-1 using tax credit code 59 and the tax credit certificate number from the tax credit certificate issued by IEDA. List each tax credit claim earned or received separately. • Instruct the beneficiaries to report their allocated tax credit on line 32 or 33 of form IA 128S as appropriate, and include the IA 128S with their tax return. IA 1065, Schedule B and 1065 IA 1065 Schedule K-1 • Report line 29 (or 30) and 32 amounts on the IA 1065, Schedule B as earned by the entity (line 29 or 30) or received from another pass-through entity (line 32), and use tax credit code 58. Also, report each member’s allocated share of the tax credit on the IA 1065 Schedule K-1 using tax credit code 58. List each tax credit claim earned or received separately on the Schedule B and Schedules K-1. • Report line 31 and 33 amounts on the IA 1065, Schedule B as earned by the entity (line 31) or received from another pass-through entity (line 33), and use tax credit code 59 and the tax credit certificate number from the tax credit certificate issued by IEDA. Also, report each member’s allocated share of the tax credit on the IA 1065 Schedule K-1 using tax credit code 59 and the tax credit certificate number. List each tax credit claim earned or received separately on the Schedule B and Schedules K-1. • Instruct the members to report their allocated tax credit on line 32 or 33 of form IA 128S, as appropriate, and include the IA 128S with their tax return. IA 1120S, Schedule B and 1120S IA 1120S Schedule K-1 • Report line 29 (or 30) and 32 amounts on the IA 1120S, Schedule B as earned by the entity (line 29 or 30) or received from another pass-through entity (line 32), and use tax credit code 58. Also, report each member’s allocated share of the tax credit on the IA 1120S Schedule K-1 using tax credit code 58. List each tax credit claim earned or received separately on the Schedule B and Schedules K-1. • Report line 31 and 33 amounts on the IA 1120S, Schedule B as earned by the entity (line 31) or received from another pass-through entity (line 33), and use tax credit code 59 and the tax credit certificate number from the tax credit certificate issued by IEDA. Also, report each member’s allocated share of the tax credit on the IA 1120S Schedule K-1 using tax credit code 59 and the tax credit certificate number. List each tax credit claim earned or received separately on the Schedule B and Schedules K-1. • Instruct the members to report their allocated tax credit on line 32 or 33 of form IA 128S, as appropriate, and include the IA 128S with their tax return. 41-124i (08/29/2023)
IA 128S (41-124)
More about the Iowa Form IA 128S Corporate Income Tax Tax Credit TY 2023
We last updated the Iowa Alternative Simplified Research Activities Credit 41-124 in February 2024, so this is the latest version of Form IA 128S, fully updated for tax year 2023. You can download or print current or past-year PDFs of Form IA 128S directly from TaxFormFinder. You can print other Iowa tax forms here.
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 |
| 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 |
| IA 1041-C | Schedule C Computation of Nonresident's Tax Credit |
| Form IA 1065 | Iowa Partnership Return of Income 41-016 |
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 128S from the Department of Revenue in February 2024.
Form IA 128S 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 128S
We have a total of thirteen past-year versions of Form IA 128S in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
2023 Form IA 128S
IA 128S (41-124)
2021 Form IA 128S
IA 128S Alternative Simplified Research Activities Tax Credit, 41-124
2020 Form IA 128S
IA 128S Alternative Simplified Research Activities Tax Credit, 41-124
2019 Form IA 128S
IA 128S Alternative Simplified Research Activities Tax Credit, 41-124
2018 Form IA 128S
IA 128 Iowa Research Activities Tax Credit, 41-128
2017 Form IA 128S
IA 128S Alternative Simplified Research Activities Tax Credit, 41-124
2016 Form IA 128S
IA 128S Alternative Simplified Research Activities Tax Credit, 41-124
2015 Form IA 128S
IA 128S Alternative Simplified Research Activities Tax Credit, 41-124
2014 Form IA 128S
41150 (IA 135).pmd
2013 Form IA 128S
41124 (IA 128S).pmd
2012 Form IA 128S
41124 (IA 128S).pmd
2011 Form IA 128S
41124 (IA 128S).pmd
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