41-149: IA 8864 Biodiesel Blended Fuel Tax Credit 41-149 (2025)
Iowa · Iowa DOR · Used for tax years 2025
The 2025 IA 8864 calculates Iowa's Biodiesel Blended Fuel Tax Credit based on gallons of biodiesel blended fuel sold at retail in Iowa and their biodiesel percentages. It also reports credits received from a pass-through entity and is included with your tax return.
Who files this form
Use the 2025 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 fuel containing at least 11% biodiesel by volume. Tank wagons count as retail fuel sites.
If you receive this credit from a partnership, LLC, S corporation, estate, or trust, report it on line 8. File a separate IA 8864 for each pass-through credit received.
Pass-through retailers allocate the credit to their members based on each member’s share of the entity’s total 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 B11–B19, B20–B29, and B30 or higher blends.
- For a pass-through credit, the credit amount and the pass-through entity’s legal name and FEIN.
Include IA 8864 and the IA 148 Iowa Tax Credits Schedule with an IA 1040, IA 1041, or IA 1120 return. Include IA 8864 with an IA 1065 or IA 1120S return.
How to file
- Enter your identifying information and tax period ending date. Add pass-through entity information if applicable.
- Enter qualifying gallons sold at retail in Iowa and calculate the credit:
- Line 1: B11–B19 gallons. Multiply by $0.05 on line 2.
- Line 3: B20–B29 gallons. Multiply by $0.07 on line 4.
- Line 5: B30 or higher gallons. 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.
- Report the credit using tax credit code 52:
- IA 1040, IA 1120, or IA 1041 credits claimed at the entity level: Report lines 7 and 8 on IA 148, Part II. For pass-through credits, also complete the required entity information in Part IV.
- IA 1041 credits allocated to beneficiaries: Report each beneficiary’s allocated share on IA 1041 Schedule K-1.
- IA 1065 or IA 1120S: Report the credits on the return’s Schedule B and each member’s allocated share on Schedule K-1.
- List each credit claim separately and include IA 8864 with your return. Include IA 148 with an IA 1040, IA 1041, or IA 1120 return.
The supplied text does not provide a mailing address or e-filing directions.
Common mistakes
- Combining pass-through credits on one IA 8864: File a separate form for each pass-through credit received and provide the required entity information.
- Using a special allocation: Special allocations are not permitted. Allocate a pass-through entity’s credit according to each member’s share of total earnings.
- Combining claims on reporting schedules: List each credit earned or received separately, as instructed.
- Leaving out required attachments: Include IA 8864 with your return and IA 148 with an IA 1040, IA 1041, or IA 1120 return.
Questions people ask
What are the credit rates for 2025?
The credit is $0.05 per gallon for B11–B19 blends, $0.07 per gallon for B20–B29 blends, and $0.10 per gallon for blends containing at least 30% biodiesel. The gallons must be sold at retail in Iowa during the tax year.
Do tank wagons qualify as retail fuel sites?
Yes. The instructions consider tank wagons to be retail fuel sites.
What happens if the credit is more than my tax liability?
The excess can be refunded or credited toward tax liability for the following year.
Where do I report a credit received from a pass-through entity?
Report it on line 8 of IA 8864. Complete a separate IA 8864 for each pass-through credit received and include the required pass-through entity information.