41-150: IA 135 E85 Gasoline Promotion Tax Credit 41-150 (2024)
Iowa · Iowa DOR · Used for tax years 2024
The 2024 Iowa IA 135 calculates the E85 Gasoline Promotion Tax Credit for E85 gasoline sold at retail in Iowa at a rate of $0.16 per gallon. It also reports credits received from pass-through entities and is included with your tax return.
Who files this form
Use the 2024 IA 135 to claim the Iowa E85 Gasoline Promotion Tax Credit if you are a retail gasoline dealer operating fuel pumps at an Iowa retail fuel site and sell qualifying E85 gasoline. Tank wagons count as retail fuel sites.
The form describes qualifying E85 as ethanol-blended gasoline formulated with a minimum ethanol percentage between 70% and 85% by volume.
Also use IA 135 if you receive this credit from a partnership, LLC, S corporation, estate, or trust. File a separate IA 135 for each pass-through credit received.
What you'll need
Have the following information ready:
- Your name, SSN or FEIN, and tax period ending date.
- Total gallons of E85 gasoline sold at retail in Iowa during the tax year.
- Any E85 credit received from a pass-through entity, along with that entity’s name and FEIN.
Include IA 135 and IA 148 with your IA 1040, IA 1041, or IA 1120. Include IA 135 with your IA 1065 or IA 1120S. Pass-through entities must also report credits on the applicable schedules described below.
How to file
- Enter your identifying information and tax period ending date.
- On line 1, enter total gallons of E85 gasoline sold at retail in Iowa during the tax year.
- Multiply line 1 by $0.16 and enter the credit on line 2.
- Enter any credit received from a pass-through entity on line 3. Complete a separate IA 135 for each pass-through credit received.
- Include IA 135 with your return.
Report the credit using tax credit code 55:
- IA 1040, IA 1120, or IA 1041 credits claimed at the entity level: Report line 2 and line 3 amounts on IA 148, Part II. For credits received from another pass-through entity, provide the required entity information in Part IV. List each claim separately.
- IA 1041 credits allocated to beneficiaries: Report each beneficiary’s allocated share on IA 1041 Schedule K-1.
- IA 1065 or IA 1120S: Report credits on the corresponding Schedule B and each member’s allocated share on the corresponding Schedule K-1. List each claim separately.
Tell members or beneficiaries to report their allocated credit on line 3 of IA 135 and include that form with their return.
The supplied text does not provide a mailing address or e-filing directions.
Common mistakes
- Leaving out required forms: Include IA 135 with your return. Also include IA 148 with IA 1040, IA 1041, or IA 1120.
- Combining pass-through credits on one IA 135: File a separate IA 135 for each pass-through credit received and provide the required entity information.
- Using special allocations: Special allocations are not permitted. A pass-through entity must allocate the credit according to each member’s share of the entity’s total earnings.
- Combining separate claims on reporting schedules: List each credit earned or received separately, as directed in the reporting instructions.
Questions people ask
How much is the 2024 credit?
The credit is $0.16 per gallon of qualifying E85 gasoline sold at retail in Iowa during the tax year.
Do tank wagons qualify as retail fuel sites?
Yes. The instructions state that tank wagons are considered retail fuel sites.
What happens if the credit is more than 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 3 of IA 135. File a separate IA 135 for each pass-through credit received and provide the required information about the entity.
Which tax credit code should I use?
Use tax credit code 55 on the applicable IA 148, Schedule B, or Schedule K-1, as directed in the reporting instructions.