(1)
Sequencing of credit deductions. The credits against computed
tax set forth in Iowa Code sections
422.5,
422.8,
422.10 through
422.12C,
422.12N, and
422.110 shall be claimed in the
following sequence:
a. Personal exemption
credit.
b. Tuition and textbook
credit.
c. Volunteer fire fighter,
volunteer emergency medical services personnel and reserve peace officer tax
credit.
d. Nonresident and
part-year resident credit.
e.
Out-of-state tax credit.
f.
Franchise tax credit.
g. S
corporation apportionment credit.
h. Alternative minimum tax credit (for tax
years beginning during 2023 only).
i. Historic preservation tax credit (when the
taxpayer has elected that the credit be nonrefundable under Iowa Code section
404A.2(4)).
j. School tuition organization tax
credit.
k. Innovation fund
investment tax credit.
l. Endow
Iowa tax credit.
m. Redevelopment
tax credit.
n. From farm to food
donation tax credit.
o. Workforce
housing tax credit.
p. Hoover
presidential library tax credit.
q.
Enterprise zone investment tax credit.
r. High quality jobs investment tax
credit.
s. Wind energy production
tax credit.
t. Renewable energy tax
credit.
u. New jobs tax
credit.
v. Beginning farmer tax
credit.
w. Agricultural assets
transfer tax credit.
x. Custom
farming contract tax credit.
y.
Geothermal heat pump tax credit.
z.
Solar energy system tax credit.
aa.
Charitable conservation contribution tax credit.
ab. Alternative minimum tax credit (for tax
years beginning before January 1, 2023).
ac. Historic preservation tax credit (when
the taxpayer has elected that the credit be refundable under Iowa Code section
404A.2(4)).
ad. High quality jobs third-party developer
tax credit.
ae. Research activities
credit.
af. Child and dependent
care tax credit or early childhood development tax credit.
ag. Motor fuel tax credit.
ah. Claim of right credit (if elected in
accordance with rule
701-300.18 (422)).
ai. Qualifying business investment tax credit
(also known as angel investor tax credit).
aj. Adoption tax credit.
ak. E-85 gasoline promotion tax
credit.
al. Biodiesel blended fuel
tax credit.
am. E-15 plus gasoline
promotion tax credit.
an. Earned
income tax credit.
ao. Renewable
chemical production tax credit.
ap.
Estimated payments, payment with vouchers, composite tax credits, and
withholding tax.
(2)
Order of credits carried forward from a previous tax year. A
credit carried forward from a previous tax year shall be applied against
computed tax before a credit earned under the same credit program in the
current tax year. However, a credit carried forward from a previous tax year
cannot be applied against computed tax before a credit earned under a different
credit program in a later year that appears before it in the sequence in
subrule 42.44(1). For example, a school tuition organization tax credit awarded
in the current tax year must be applied against computed tax before a renewable
energy tax credit carried forward from a previous tax year.
This rule is intended to implement Iowa Code sections
422.5,
422.8,
422.10,
422.11,
422.11A,
422.11B,
422.11D,
422.11E,
422.11F,
422.11H,
422.11I,
422.11J,
422.11L,
422.11M,
422.11N,
422.11O,
422.11P,
422.11Q,
422.11R,
422.11S,
422.11V,
422.11W,
422.11Y,
422.11Z,
422.12,
422.12B,
422.12C and
422.110 and 2014 Iowa Acts,
House Files 2448 and 2468.
