Iowa R&D Tax Credit Summary

R&D Tax Credit Available

Yes

STATE

Iowa

 

NAME

Research Activities Credit (RAC)

DOES IT APPLY TO C-CORPS & PASS THROUGHS?

Yes

DESCRIPTION

Refundable credit with similar definitions as federal for Qualified Research Expenses and Qualified Research Activities except only include Iowa based expenses and certain industries allowed or excluded.

PERCENTAGE

6.5% on the incremental expenses with a calculation similar to the regular federal method.

Alternatively, 4.55% on expenses that exceed a base amount similar to federal ASC.