41-133: IA 133 New Jobs Tax Credit 41-133 (2025)
Iowa · Iowa DOR · Used for tax years 2025
The 2025 IA 133 calculates the Iowa New Jobs Tax Credit for eligible new jobs covered by a community college training agreement under Iowa’s 260E program. It reports employment levels, qualifying wages, the calculated credit, and any credit received through a pass-through entity.
Who files this form
Use the 2025 IA 133 to claim the Iowa New Jobs Tax Credit. A taxpayer claiming the credit must have an Iowa Industrial New Jobs Training (260E) agreement with a community college and meet the employment requirements.
- Employment must increase over the base employment level by at least 10.0%, counting eligible new jobs. If there is no base employment level, the taxpayer may claim the credit for all eligible new jobs for the selected tax year.
- The tax year must begin or end during the term of the 260E agreement.
- Complete a separate IA 133 for each different 260E agreement under which you claim a credit.
- Pass-through entities must file a completed IA 133 with their return. Recipients of pass-through credits must file a separate IA 133 for each pass-through credit received.
If you are only reporting a carryforward of a New Jobs Tax Credit from tax year 2024, you do not need to complete IA 133. Report the 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.
- Your base employment level at the agreement location and the full-time equivalent employment level there on the last day of your tax year.
- Employee names, SSNs, job titles, wages paid during 2025, and hours and months worked for Schedules A and B.
- Pass-through entity information and the credit amount received, if applicable.
Complete Schedule A for jobs directly resulting from the project and Schedule B for jobs directly related to those new jobs. Use additional schedules if needed.
Include IA 148 with IA 133 when filing an IA 1040, IA 1041, or IA 1120.
How to file
Include IA 133 with your Iowa tax return. The supplied text does not give a mailing address or e-file instructions.
- IA 1040, IA 1041, or IA 1120: Include IA 133 and IA 148. For individual, corporate, and fiduciary credits claimed at the entity level, report line 10 and line 11 amounts on IA 148, Part I, Column D, using tax credit code 08 and the certificate number. Report required pass-through information in Part IV for line 11 amounts.
- IA 1065 or IA 1120S: Include IA 133 with the return. Report credits on the corresponding Schedule B and each member’s 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.
List each credit claim separately. Members and beneficiaries report their allocated credit on IA 133, line 11, and include IA 133 with their return. If you are only reporting a pass-through credit, skip lines 1 through 10.
Common mistakes
- Claiming the same job again: The credit can be claimed only once for each new job. Leave Schedule A or B, column F, blank for a job claimed in a prior tax year or one you choose not to claim this year.
- Claiming below the employment threshold: If line 8 is less than 10.0%, do not claim the credit for that tax year. If line 1 is zero, enter 10.0% on line 8.
- Not rounding line 4 down: If the total includes partial jobs, round down to the nearest whole number.
- Using special allocations: Pass-through entities must allocate the credit according to each member’s share of the entity’s earnings. Special allocations are not permitted.
- Combining claims on one form: Complete separate IA 133 forms for different 260E agreements and for each pass-through credit received.
Questions people ask
How is the 2025 credit calculated?
Add the qualifying taxable wages from Schedules A and B on line 9, then multiply by 6% on line 10. For 2025, qualifying taxable wages are the first $39,500 paid to employees in eligible jobs, prorated by average hours worked.
Can part-time jobs count?
Yes. Schedules A and B use an hours share for each employee. The credit can be claimed for full-time jobs or part-time jobs that together equal a full-time job. Round the total on line 4 down to a whole number.
Do recalled workers or replacement jobs qualify?
No. New jobs directly resulting from the project do not include recalled workers, replacement jobs, or other jobs that formerly existed in Iowa.
What happens 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 used up, whichever happens first.