R&D Tax Credit Available:
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
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 IA QREs and 50% of the average of the prior 3 years IA QREs.
Any R&D tax credit in excess of tax liability can be refunded or credited to tax liability for the following year.