Iowa R&D Tax Credit Summary

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


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.

Special Notes:

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

Research Tax Credit
Important Links and Forms

Iowa DOR
Iowa Form 1A 128
Iowa Form IA 128S

Contact Us for a No-Cost Assessment of your Federal and State Research Credit Estimate

Learn More About R&D Tax Credits