Iowa New Jobs Tax Credit Worksheet 41-133

New Jobs Tax Credit Worksheet 41-133
IA 133 New Jobs Tax Credit, 41-133
2023 IA 133

Iowa New Jobs Tax Credit
tax.iowa.gov
Name(s): ___________________________________________________________________________
Social Security Number (SSN) or Federal Employer Identification Number (FEIN): _________________
Pass-through entity (if applicable): _______________________________________________________
Pass-through FEIN: _______________________ Tax period ending date: ______________________
Tax credit certificate number for 260E agreement with a community college: ______________________
If you claimed the New Jobs Tax Credit under this agreement in a prior tax year, you are NOT eligible to
claim it again for the same new jobs.
Part I - Eligibility for New Jobs Tax Credit
1. Base employment level at the location with the 260E agreement ........................ 1. _______________
2. Number of new jobs directly resulting from the project covered by the
agreement for which the tax credit is being claimed. Enter number from
line A1 of Schedule A ........................................................................................... 2. _______________
3. Number of new jobs directly related to the jobs in line 2 for which the tax credit
is being claimed. Enter number from line B1 of Schedule B ................................. 3. _______________
4. Total new jobs claimed. Add lines 2 and 3. If partial jobs were reported,
round down to the nearest whole number ............................................................ 4. _______________
5. Total employment level in the current tax year at the location with the 260E
agreement ............................................................................................................ 5. _______________
6. Total employment gain at the location with the 260E agreement. Subtract line
1 from line 5.......................................................................................................... 6. _______________
7. Total eligible new jobs. Enter the smaller of line 4 or line 6 .................................. 7. _______________
8. Increased employment percentage. Divide line 7 by line 1 and round to three
decimals (ex. 10.3%). If line 1 equals zero, report 10.0%. If this number is less
than 10.0%, you are not eligible for the New Jobs Tax Credit for this tax year;
do not claim this tax credit .................................................................................... 8. _____________ %
Part II - Calculation of the New Jobs Tax Credit
9. Qualifying taxable wages for new jobs for which the tax credit is being claimed
in tax year 2023. Add total qualifying taxable wages from line A2 of
Schedule A and line B2 of Schedule B ................................................................. 9. _______________
10. New Jobs Tax Credit. Multiply line 9 by the tax credit rate of 6% (.06).
See Where to Report This Tax Credit in instructions............................................ 10. ______________
Part III - Pass-Through or Carryforward of the New Jobs Tax Credit
11. Pass-Through New Jobs Tax Credit from partnership, limited liability
company (LLC), S corporation, estate or trust. See Where to Report This
Tax Credit in instructions ...................................................................................... 11. ______________
12. Carryforward of New Jobs Tax Credit from tax year 2022 under the tax credit
certificate number listed above. Only for use by taxpayers filing an IA 1040,
IA 1041, or IA 1120. See Where to Report This Tax Credit in instructions ........... 12. ______________
Include this form with your return.
41-133a (07/24/2023)

2023 IA 133, page 2
Schedule A - Employees in New Jobs Directly Resulting from the Project
A
Employee name

B
Employee
SSN

C
Job title

D
E
F
Wages paid Hours Qualifying taxable
during the tax share wages: Report the
year
lesser of column D
or $36,100
multiplied by
column E

A1. Total new jobs (sum column E). Enter on line 2 of the IA 133 ........................ A1. _____________
A2. Total qualifying taxable wages (sum column F) ............................................. A2. _____________
Schedule B - Employees in New Jobs Directly Related to the New Jobs in Schedule A
A
B
C
D
E
F
Employee name
Employee
Job title
Wages paid Hours Qualifying taxable
SSN
during the tax share wages: Report the
year
lesser of column D
or $36,100
multiplied by
column E

B1. Total new jobs (sum column E). Enter on line 3 of the IA 133 ........................ B1. _____________
B2. Total qualifying taxable wages (sum column F) ............................................. B2. _____________
41-133b (07/24/2023)

2023 IA 133 Instructions, page 1
About the Iowa New Jobs Tax Credit
A New Jobs Tax Credit can be claimed by a
taxpayer who has entered into an Iowa Industrial
New Jobs Training (260E) agreement with a
community college and who has increased
employment over the base employment level by at
least 10.0%. The tax credit can be claimed in any
tax year that either begins or ends during the term
of the 260E agreement. However, the tax credit
may not be taken until the base employment level
has been exceeded by at least 10.0%. In the case
of a taxpayer without a base employment level, the
tax credit can be claimed for all eligible new jobs
for the tax year selected by the taxpayer. The tax
credit can only be claimed once for each new job.
Base employment level means the number of fulltime jobs a business employs at the location
covered by the 260E agreement on the date of the
agreement. The number of full-time jobs is the total
number of full-time equivalent jobs where part-time
jobs are expressed as a share of a full-time job as
explained in the instructions for Column E of
Schedules A and B.
In determining if the taxpayer has increased
employment over the base employment level by at
least 10.0%, only those new jobs directly resulting
from the project covered by the agreement and
those directly related to those new jobs are eligible.
New jobs directly resulting from a project do not
include jobs of recalled workers or replacement
jobs or other jobs that formerly existed in the state.
New jobs directly related to the new jobs resulting
from the project means those jobs that directly
support the new jobs. However, those new jobs do
not include an in-state employee transferred to a
position that would be considered a new job
directly related to the new jobs resulting from the
project unless the transferred employee’s vacant
position is filled by a new employee. The burden of
proof that a new job is directly related to the new
jobs resulting from the project is on the taxpayer.
Example: A taxpayer who has entered into a
chapter 260E agreement to train new employees
for a new product line transfers an in-state
employee to be foreperson of the new product line
and fills the transferred employee’s position with a
new employee. The new foreperson’s position
would be considered a job directly related to new
jobs because it directly supports the new jobs and
the transferred employee’s old position was filled
by a new employee.

Any credit in excess of the tax liability for the tax
year may be credited to the tax liability for the
following 10 tax years or until depleted, whichever
is earlier. If you are only claiming a New Jobs Tax
Credit carryforward from a prior tax year, skip lines
1 through 11.
A separate IA 133 must be completed for each
different 260E agreement under which a New Jobs
Tax Credit, new or carryforward, is claimed.
Pass-Through Entities - Allocation of Tax Credit
If the business is a pass-through entity
(partnership, LLC, 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 to the
entity’s total earnings. Special allocations are not
permitted. The pass-through entity must file the
completed IA 133 with its return and report the tax
credit to the Department and members as
instructed (see Where to Report This Tax Credit).
Schedules A and B New Jobs Details
Schedules A and B must be completed to
demonstrate eligibility for the New Jobs Tax Credit.
In Schedule A, provide the name, Social Security
Number (SSN), and job title for employees in the
new jobs directly resulting from the project covered
by the agreement. In Schedule B, provide the
name, SSN, and job title for employees in the new
jobs directly related to the new jobs reported in
Schedule A. Complete multiple schedules if more
lines are needed. Also, report total wages paid to
each employee during tax year 2023 in column D.
Column E equals the employee’s share of hours
toward a full-time job based on the average
number of hours worked each week. Enter 1 if the
average was 35 hours or more; enter .75 if the
average was 25 hours or more but under 35 hours;
enter .5 if the average was 15 hours or more but
under 25 hours; enter .25 if the average was under
15 hours. If the employee worked full-time and was
only in the job for a portion of the year, enter the
share of months. For example, enter .5 if the
employee worked 6 months; enter .83 if the
employee worked 10 months.

41-133c (07/24/2023)

2023 IA 133 Instructions, page 2
If the employee worked part-time for a portion of
the year, multiply the two pro-rated numbers and
round to two digits to the right of the decimal
place.
Column F equals qualifying taxable wages for the
employees in jobs for which the taxpayer is
claiming the New Jobs Tax Credit this tax year.
Enter the lesser of column D or $36,100
multiplied by the hours share in column E to
calculate qualifying taxable wages in column F. If
the taxpayer claimed a tax credit for the job of the
listed employee in a prior tax year, leave column
F blank. If the taxpayer chooses to not claim a tax
credit this tax year for the job of a listed
employee, leave column F blank.
On lines A1 and B1 of each respective schedule,
total column E, including partial jobs, for that
schedule. On lines A2 and B2 of each respective
schedule, total column F for that schedule. Enter
line A1 of Schedule A on line 2 of the IA 133.
Enter line B1 of Schedule B on line 3 of the IA
133. Add lines A2 and B2 of Schedules A and B
and enter that sum in line 9 of the IA 133.
2023 IA 133 Line Instructions
Provide your name, SSN or Federal Employer
Identification Number (FEIN), and tax period
ending date. Also, report the tax credit certificate
issued with the 260E agreement.
If you are only claiming a New Jobs Tax Credit
carryforward from a prior tax year, skip lines 1
through 11.
Line 2: Number of new jobs claimed Report the number of new jobs on line A1 of
Schedule A on the IA 133; include additional
schedules if more than 15 employees. Report the
sum with partial jobs if applicable.
Line 3: Number of jobs directly related to the new
jobs claimed Report the number of jobs directly related to the
new jobs on line B1 of Schedule B on the IA 133;
include additional schedules if more than six
employees. Report the sum with partial jobs if
applicable.
Line 4: Total new jobs claimed Add lines 2 and 3. If partial jobs were reported,
round down to the nearest whole number. The
credit can only be claimed for full-time jobs or the
aggregation of part-time jobs that equal a fulltime job.

Line 5: Total employment level in the current tax
year at the location with the 260E agreement Your total employment level is the number of fulltime equivalent jobs the business employs at the
location covered by the 260E agreement on the
last day of your tax year. The number of full-time
jobs is the total number of full-time equivalent
jobs where part-time jobs are expressed as a
share of a full-time job as explained in the
instructions for Column E of Schedules A and B.
Line 9: Qualifying taxable wages For 2023, qualifying taxable wages are the first
$36,100 paid to employees in new jobs or in jobs
directly related to those new jobs, prorated by the
average hours worked. For 2023, $36,100 is the
amount of taxable wages on which an employer
is required to pay unemployment taxes.
Line 10: New Jobs Tax Credit Multiply line 9 by 6% (.06). This is your New Jobs
Tax Credit. See Where to Report This Tax Credit.
Line 11: Pass-through New Jobs Tax Credit If the taxpayer has received any pass-through
New Jobs Tax Credit from a pass-through entity,
report that amount on this line. If the taxpayer is
only reporting a pass-through New Jobs Tax
Credit, skip lines 1 through 10. File a separate IA
133 for each pass-through New Jobs Tax Credit
received and provide the required information
regarding the pass-through entity. See Where to
Report This Tax Credit.
Line 12: Carryforward of New Jobs Tax Credit
from 2022 under reported tax credit certificate For individuals (IA 1040 filers), fiduciaries (IA
1041 filers), and corporations (IA 1120 filers), any
carryforward from prior year(s) claimed under the
same 260E contract must be reported on line 12.
If the taxpayer is only reporting carryforward, skip
lines 1 through 11.
Include this form and the IA 148 with your IA1040,
IA 1041, or IA 1120.
Include this form with your IA 1065 or IA 1120S.

41-133d (07/24/2023)

2023 IA 133 Instructions, page 3
Where to report this tax credit:
Iowa form:

Enter amounts
from lines 10,
11, or 12 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 10 and 11 amounts on the IA 148, Part I, Column D, using tax
credit code 08 and the tax credit certificate number issued with the 260E
agreement. List each tax credit claim earned or received separately.
Report line 12 amounts on the IA 148, Part I, Column C, using tax credit
code 08 and the tax credit certificate number issued with the 260E
agreement. If you have other New Jobs Tax Credits to report in Column D
under the same tax credit certificate number, report the line 12 carryforward
amount on the same line.
For line 11 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 10 and 11 amounts on each beneficiary’s
IA 1041 Schedule K-1 using tax credit code 08 and the tax credit certificate
number issued with the 260E agreement. List each tax credit claim earned
or received separately.
Instruct beneficiaries to report their allocated tax credit on line 11 of form IA
133 and include the IA 133 with their tax return.
Report line 10 and 11 amounts on the IA 1065 Schedule B as earned by the
entity (line 10) or received from another pass-through entity (line 11) and
use tax credit code 08 and the tax credit certificate number issued with the
260E agreement. Also, report each member’s allocated share of the tax
credit on the IA 1065 Schedule K-1 using tax credit code 08 and the tax
credit certificate number issued with the 260E agreement. List each tax
credit claim earned or received separately on Schedule B and Schedule K-1.
Instruct members to report their allocated tax credit on line 11 of form IA 133
and include the IA 133 with their tax return.
Report line 10 and 11 amounts on the IA 1120S Schedule B as earned by
the entity (line 10) or received from another pass-through entity (line 11) and
use tax credit code 08 and the tax credit certificate number issued with the
260E agreement. Also, report each member’s allocated share of the tax
credit on the IA 1120S Schedule K-1 using tax credit code 08 and the tax
credit certificate number issued with the 260E agreement. List each tax
credit claim earned or received separately on Schedule B and Schedule K-1.
Instruct members to report their allocated tax credit on line 11 of form IA 133
and include the IA 133 with their tax return.

41-133e (07/24/2023)