41-149: IA 8864 Biodiesel Blended Fuel Tax Credit 41-149 (2024)
Iowa · Iowa DOR · Used for tax years 2024
The 2024 IA 8864 calculates Iowa’s Biodiesel Blended Fuel Tax Credit for biodiesel blended fuel sold at retail in Iowa. It reports gallons sold by biodiesel blend percentage, the resulting credit, and credits received from pass-through entities.
Who files this form
Use the 2024 IA 8864 to claim the Iowa Biodiesel Blended Fuel Tax Credit if you are a retail diesel dealer operating fuel pumps at an Iowa retail fuel site and sell qualifying biodiesel blended fuel. Tank wagons count as retail fuel sites. Qualifying fuel must contain at least 11% biodiesel by volume.
Taxpayers receiving this credit from a partnership, LLC, S corporation, estate, or trust also use IA 8864. File a separate IA 8864 for each pass-through credit received.
If the retailer is a pass-through entity, it must allocate the credit to its members based on their shares of the entity’s earnings.
What you'll need
Have the following information ready:
- Your name, SSN or FEIN, and tax period ending date.
- Total gallons sold at retail in Iowa during the tax year, separated into blends containing 11%–19%, 20%–29%, and at least 30% biodiesel.
- Any Biodiesel Blended Fuel Tax Credit received from a pass-through entity, along with that entity’s legal name and FEIN.
Include IA 148 with IA 8864 when filing an IA 1040, IA 1041, or IA 1120. Pass-through reporting uses the applicable Schedule B and Schedule K-1 for partnerships and S corporations, or IA 1041 Schedule K-1 for credits allocated to beneficiaries.
How to file
Complete the gallon totals and credit calculations:
- Enter gallons containing 11%–19% biodiesel on line 1. Multiply by $0.05 on line 2.
- Enter gallons containing 20%–29% biodiesel on line 3. Multiply by $0.07 on line 4.
- Enter gallons containing at least 30% biodiesel on line 5. Multiply by $0.10 on line 6.
- Add lines 2, 4, and 6 on line 7.
- Enter any credit received from a pass-through entity on line 8.
Include IA 8864 and IA 148 with your IA 1040, IA 1041, or IA 1120. Include IA 8864 with your IA 1065 or IA 1120S.
For IA 1040, IA 1120, and credits claimed at the entity level on IA 1041, report lines 7 and 8 on IA 148, Part II, using tax credit code 52. Report required pass-through information for line 8 credits in Part IV.
Partnerships and S corporations report the credits on their applicable Schedule B and each member’s Schedule K-1 using code 52. Estates and trusts allocating credits to beneficiaries report each beneficiary’s share on IA 1041 Schedule K-1 using code 52.
The supplied text does not specify a mailing address or an e-file method.
Common mistakes
- Combining pass-through credits on one form: File a separate IA 8864 for each pass-through credit received and provide the required entity information.
- Using special allocations: These are not permitted. Allocate a pass-through entity’s credit according to each member’s share of the entity’s total earnings.
- Combining separate claims in reporting: List each credit earned or received separately on the applicable schedules.
- Leaving out required attachments: Include IA 8864 with your return, and include IA 148 with IA 1040, IA 1041, or IA 1120.
Questions people ask
How much is the credit for 2024?
The credit is $0.05 per gallon for blends containing 11%–19% biodiesel, $0.07 per gallon for blends containing 20%–29%, and $0.10 per gallon for blends containing at least 30%.
Do tank wagons qualify as retail fuel sites?
Yes. The instructions say tank wagons are considered retail fuel sites.
What happens if the credit exceeds my tax liability?
The excess can be refunded or credited to your tax liability for the following year.
Where do I enter a credit received from a pass-through entity?
Enter it on line 8 of IA 8864. Use a separate IA 8864 for each pass-through credit received and provide the required information about the entity.