Iowa R&D Tax Credit Summary
IA R&D Tax Credit Available

Yes


Eligible Entities

C-Corporations, S-Corporations, LLCs, Partnerships


Deadline for Tax Filing

Due with Iowa Tax Return


Data Required to Compute Credit
  • Claim Period Federal Qualified R&D Expenses (QREs)
  • Claim Period IA QREs
  • IA QREs for Prior 3 Years

Credit Carryforward

None


IA R&D Credit Summary
  • Regular Method: 6.5% of the excess of qualified research expenses during the tax year over a computed base amount of expenditures using Iowa's apportioned share of research expenses.
  • Alternative Simplified Method: 4.55% of the difference between the current year's IA QREs and 50% of the average of the prior 3 years' IA QREs.

Special Notes

Any R&D tax credit in excess of tax liability can be refunded or credited to tax liability for the following year.


IA Research Tax Credit

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