41-152: IA 138 E15 Plus Gasoline Promotion Tax Credit 41-152 (2024)

Who files this form

Use the 2024 IA 138 to claim the Iowa E15 Plus Gasoline Promotion Tax Credit if you are a retail gasoline dealer operating fuel pumps at an Iowa retail fuel site and selling qualifying E15 Plus gasoline. Tank wagons count as retail fuel sites.

Qualifying gasoline has an ethanol content between 15% and 69% by volume and is not classified as E85 gasoline.

If you receive this credit from a partnership, LLC, S corporation, estate, or trust, report it on line 3. File a separate IA 138 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.
• The total gallons of qualifying E15 Plus gasoline sold at retail in Iowa during the tax year.
• Any E15 Plus credit received from a pass-through entity, along with that entity’s legal name and FEIN.

Include IA 138 and the IA 148 Tax Credits Schedule with an IA 1040, IA 1041, or IA 1120 return. Include IA 138 with an IA 1065 or IA 1120S return. Pass-through entities also report credits on the applicable schedules listed in the form’s reporting instructions.

How to file

1. Enter your identifying information and tax period ending date. Provide pass-through entity information if applicable.
2. On line 1, enter the total gallons of E15 Plus gasoline sold at retail in Iowa during the tax year.
3. Multiply line 1 by $0.09 and enter the credit on line 2.
4. Enter any credit received from a pass-through entity on line 3. Complete a separate IA 138 for each pass-through credit received.

Report the credit using tax credit code 65:

• IA 1040, IA 1120, or IA 1041 credits claimed at the entity level: Report lines 2 and 3 on IA 148, Part II. For pass-through credits on line 3, provide the required entity information in IA 148, 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 applicable Schedule B and each member’s allocated share on Schedule K-1.

List each credit claim earned or received separately. Members and beneficiaries report their allocated credit on line 3 of their own IA 138 and include it with their return.

Include IA 138 and IA 148 with IA 1040, IA 1041, or IA 1120. Include IA 138 with IA 1065 or IA 1120S. The supplied text does not specify a mailing address or e-file method.

Common mistakes

• Combining pass-through credits on one IA 138: File a separate form for each pass-through credit received and provide the required entity information.
• Making special allocations: Pass-through entities must allocate the credit according to each member’s share of the entity’s total earnings. Special allocations are not permitted.
• Leaving out required attachments: Include IA 138 with your return, plus IA 148 when filing IA 1040, IA 1041, or IA 1120.
• Combining separate credit claims on reporting schedules: The reporting instructions require each credit claim earned or received to be listed separately.

Questions people ask

How much is the 2024 credit?

Multiply the total qualifying E15 Plus gallons sold at retail in Iowa during the tax year by $0.09 per gallon.

Does E85 gasoline qualify for this credit?

No. The form describes qualifying E15 Plus gasoline as having ethanol content between 15% and 69% by volume and not being classified as E85 gasoline.

What happens if the credit is more than my tax liability?

The excess can be refunded or credited toward your tax liability for the following year.

How do I report a credit received from a pass-through entity?

Enter the amount on line 3 of IA 138. File a separate IA 138 for each pass-through credit received and provide the entity’s required information.

Do tank wagons count as retail fuel sites?

Yes. The form’s instructions state that tank wagons are considered retail fuel sites.

Official sources

• https://revenue.iowa.gov/media/4124/download?inline