41-152: IA 138 E15 Plus Gasoline Promotion Tax Credit 41-152 (2025)
Iowa · Iowa DOR · Used for tax years 2025
The 2025 IA 138 calculates Iowa's E15 Plus Gasoline Promotion Tax Credit for E15 Plus gasoline sold at retail in Iowa. It reports gallons sold, the credit calculated at nine cents per gallon, and any credit received from a pass-through entity.
Who files this form
Use the 2025 IA 138 to claim the Iowa E15 Plus Gasoline Promotion Tax Credit. The credit is available to retail gasoline dealers who operate fuel pumps at an Iowa retail fuel site, including tank wagons, and sell qualifying E15 Plus gasoline.
Qualifying gasoline is classified as E15 or higher, has an ethanol percentage by volume between 15% and 67%, and is not classified as E85 gasoline.
Taxpayers receiving this credit from a partnership, LLC, S corporation, estate, or trust must 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 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 Iowa 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 reporting also uses the applicable Schedule B and Schedule K-1, or IA 1041 Schedule K-1 for credits allocated to beneficiaries.
How to file
- Enter your identifying information and tax period ending date. Provide pass-through entity information if applicable.
- On line 1, enter the total gallons of E15 Plus gasoline sold at retail in Iowa during the tax year.
- Multiply line 1 by $0.09 and enter the credit on line 2.
- Enter any credit received from a pass-through entity on line 3. File 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 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 earned and received credits on the applicable Schedule B and each member’s allocated share on Schedule K-1. List each claim separately.
Members and beneficiaries report their allocated credit on line 3 of IA 138 and include IA 138 with their return.
Include IA 138 and IA 148 with your IA 1040, IA 1041, or IA 1120. Include IA 138 with your IA 1065 or IA 1120S. The supplied text does not give a mailing address or e-file instructions.
Common mistakes
- Leaving out required attachments: Include IA 138 with your return. For IA 1040, IA 1041, and IA 1120 returns, also include IA 148.
- Combining pass-through credits on one IA 138: File a separate IA 138 for each pass-through credit received and provide the required entity information.
- Using special allocations: These are not permitted. A pass-through entity must allocate the credit according to each member’s share of the entity’s total earnings.
- Combining claims in credit reporting: List each credit earned or received separately on the applicable schedules and use tax credit code 65.
Questions people ask
How much is the credit for 2025?
The credit is $0.09 per gallon of E15 Plus gasoline sold at retail in Iowa during the tax year. Multiply the gallons on line 1 by $0.09 to calculate line 2.
Does E85 gasoline qualify for this credit?
No. The qualifying gasoline described in the instructions is classified as E15 or higher, has an ethanol percentage by volume between 15% and 67%, and is not classified as E85 gasoline.
What if my credit is larger than my tax liability?
Any credit above your tax liability 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 138. File a separate IA 138 for each pass-through credit received and provide the required information about the entity.
Do tank wagons count as retail fuel sites?
Yes. The instructions state that tank wagons are considered retail fuel sites.