41-133: IA 133 New Jobs Tax Credit 41-133 (2024)
Iowa · Iowa DOR · Used for tax years 2024
The 2024 IA 133 calculates Iowa’s New Jobs Tax Credit for jobs covered by an Iowa Industrial New Jobs Training (260E) agreement with a community college. It reports employment levels, qualifying new jobs and wages, and credits received from pass-through entities.
Who files this form
Use IA 133 to claim the Iowa New Jobs Tax Credit. A taxpayer may qualify if they have an Iowa Industrial New Jobs Training (260E) agreement with a community college and eligible new jobs increase employment over the base employment level by at least 10.0%.
If there is no base employment level, the taxpayer may claim the credit for all eligible new jobs for the selected tax year. Each new job can qualify for the credit only once.
- Complete a separate IA 133 for each different 260E agreement under which you claim a credit.
- A pass-through entity must file the completed IA 133 with its return and allocate the credit to its members.
- If you receive a pass-through credit, file a separate IA 133 for each credit received. If that is all you are reporting, skip lines 1 through 10 and report the credit on line 11.
- For 2024, you do not need to complete IA 133 if you are only reporting a New Jobs Tax Credit carryforward from tax year 2023. Report that carryforward directly on IA 148.
What you'll need
Have the following information ready:
- Your name, SSN or FEIN, and tax period ending date.
- The tax credit certificate number issued with your 260E agreement.
- The pass-through entity's name and FEIN, if applicable, and any pass-through credit amount received.
- The base employment level at the covered location on the agreement date and the employment level on the last day of your tax year.
- For employees listed on Schedules A and B: name, SSN, job title, wages paid during 2024, average weekly hours, and the portion of the year worked.
Complete Schedules A and B to demonstrate eligibility. Use additional schedules if you need more space. Include IA 148 when filing this form with IA 1040, IA 1041, or IA 1120.
How to file
Include IA 133 with your Iowa tax return:
- IA 1040, IA 1041, or IA 1120: Include both IA 133 and IA 148. For credits claimed at the taxpayer or entity level, report amounts from lines 10 and 11 on IA 148, Part I, Column D, using tax credit code 08 and the certificate number. Report required pass-through entity information in Part IV for line 11 credits.
- IA 1065 or IA 1120S: Include IA 133. Report credits on the return's Schedule B and each member's allocated share on Schedule K-1, using code 08 and the certificate number.
- IA 1041 credits allocated to beneficiaries: Report each beneficiary's share on IA 1041 Schedule K-1 using code 08 and the certificate number. Beneficiaries report their credit on IA 133, line 11, and include IA 133 with their return.
List each credit claim earned or received separately. The supplied text does not specify a mailing address or an e-file method.
Common mistakes
- Claiming the same job twice: You cannot claim the credit again for a job claimed in a prior tax year. Leave Schedule A or B, column F, blank for that job.
- Claiming below the eligibility percentage: Do not claim the credit if line 8 is less than 10.0%. If the base employment level on line 1 is zero, report 10.0% on line 8.
- Not rounding line 4 down: If lines 2 and 3 include partial jobs, round their combined total down to the nearest whole number on line 4.
- Including excluded jobs: Jobs directly resulting from the project do not include recalled workers, replacement jobs, or other jobs that formerly existed in Iowa. An in-state transfer into a directly related job does not qualify unless a new employee fills the transferred employee's vacant position.
- Using a special pass-through allocation: Special allocations are not permitted. Allocate the credit according to each member's share of the entity's earnings.
- Combining separate claims on one form: Complete a separate IA 133 for each different 260E agreement or each pass-through credit received.
Questions people ask
How much is the credit for 2024?
The credit is 6% of qualifying taxable wages on line 9. For each listed employee, qualifying wages are the lesser of wages paid during the tax year or $38,200 multiplied by the employee's hours share.
What is the base employment level?
It is the number of full-time equivalent jobs at the location covered by the 260E agreement on the date of that agreement. Part-time jobs count as shares of full-time jobs.
Can part-time employees count?
Yes. Column E uses an hours share based on average weekly hours: 1 for 35 hours or more, .75 for 25 to under 35 hours, .5 for 15 to under 25 hours, and .25 for under 15 hours. Work for only part of the year is also prorated. The credit can be claimed only for full-time jobs or part-time jobs that together equal a full-time job.
Which tax year can I choose to claim the credit?
The tax year must begin or end during the term of the 260E agreement. You cannot take the credit until the required employment increase is met. Each new job can be claimed only once.
What if the credit is more than my tax liability?
The excess may be applied to tax liability for the following 10 tax years or until it is used up, whichever happens first.