Iowa E85 Gasoline Promotion Tax Credit 41-150

E85 Gasoline Promotion Tax Credit 41-150
IA 135 E85 Gasoline Promotion Tax Credit, 41-150
2023 IA 135

Iowa E85 Gasoline Promotion 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: __________________
1. Total number of E85 gasoline gallons sold at retail in Iowa during the tax year .... 1. ______________
2. E85 Gasoline Promotion Tax Credit. Multiply line 1 by the tax credit rate per
gallon of $0.16 (sixteen cents). See Where to Report This Tax Credit
in instructions........................................................................................................... 2. ______________
3. Pass-through E85 Gasoline Promotion Tax Credit from partnership, limited
liability company (LLC), S corporation, estate, or trust. See Where to Report
This Tax Credit in instructions ................................................................................. 3. ______________
Include this form with your return.

41-150a (07/24/2023)

2023 IA 135 Instructions, page 1
An Iowa E85 Gasoline Promotion Tax Credit is
available to retail dealers of gasoline 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 E85
gasoline, which is an ethanol-blended gasoline
formulated with a minimum percentage between
70% and 85% by volume of ethanol.
The tax credit equals $0.16 multiplied by the total
number of gallons of E85 gasoline sold during the
tax year. See Iowa Code section 422.11O and
Iowa Administrative Code rules 701—304.33 and
52.30 for more information.
Provide your name, Social Security Number
(SSN) or Federal Employer Identification Number
(FEIN), and tax period ending date.

If the taxpayer has received any E85 Gasoline
Promotion Tax Credit from a pass-through entity,
indicate that amount on line 3 of the IA 135. See
Where to Report This Tax Credit.
File a separate IA 135 for each pass-through E85
Gasoline Promotion 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.

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 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. Report the tax
credit to the Department and members as
instructed (see Where to Report This Tax Credit).

41-150b (07/24/2023)

Where to Report This Tax Credit
Iowa Form:

Enter amounts
from lines 2 and
3 on:

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

IA 148 Tax
Credits Schedule

IA 1041
Schedule K-1
IA 1065
Schedule B

1065

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

1120S

and
IA 1120S
Schedule K-1

2023 IA 135 Instructions, page 2

Additional instructions:
• Report line 2 and line 3 amounts on the IA 148, Part II, using tax credit
code 55. List each tax credit claim earned or received separately.
• For line 3 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 2 and line 3 amounts on each
beneficiary’s IA 1041 Schedule K-1 using tax credit code 55. List each
tax credit claim earned or received separately.
• Instruct beneficiaries to report their allocated tax credit on line 3 of form
IA 135 and include the IA 135 with their tax return.
• Report line 2 and line 3 amounts on the IA 1065 Schedule B as earned
by the entity (line 2) or received from another pass-through entity (line
3) and use tax credit code 55. Also, report each member’s allocated
share of the tax credit on the IA 1065 Schedule K-1 using tax credit
code 55. 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 3 of form IA
135 and include the IA 135 with their tax return.
• Report line 2 and line 3 amounts on the IA 1120S Schedule B as
earned by the entity (line 2) or received from another pass-through
entity (line 3) and use tax credit code 55. Also, report each member’s
allocated share of the tax credit on the IA 1120S Schedule K-1 using
tax credit code 55. 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 3 of form IA
135 and include the IA 135 with their tax return.

41-150c (07/24/2023)