41-167: IA 178 Farm to Food Donation Tax Credit 41-167 (2025)
Iowa · Iowa DOR · Used for tax years 2025
The 2025 Iowa IA 178 reports eligible food commodity donations and calculates the Farm to Food Donation Tax Credit. It also reports credits received from a pass-through entity and is included with your tax return.
Who files this form
Taxpayers who want to claim Iowa’s Farm to Food Donation Tax Credit must use IA 178 to report eligible food commodity donations and calculate the credit for tax year 2025.
Donor-producers complete the donation calculation in Part II. Taxpayers who receive this credit from a partnership, LLC, S corporation, estate, or trust report the amount on Part II Total, line 2, and include IA 178 with their tax return.
What you'll need
- Authorized receipts from authorized food organizations for donations made during tax year 2025. These provide the six-digit food organization codes needed for the form.
- Your name and SSN or FEIN, plus the pass-through entity’s legal name, FEIN, and tax period ending date, if applicable.
- Donation details: commodity type, quantity, measurement unit, and the commodity’s per-unit price on the donation date.
- Any Farm to Food Donation Tax Credit amount received from a pass-through entity.
Keep the authorized receipts in your records. The Department may request them later.
How to file
Complete all applicable fields and include additional pages if needed. Group donations by food organization and commodity type, using a separate line for each organization and each commodity type.
Include IA 178 with your Iowa tax return:
- IA 1040, IA 1041, or IA 1120: Include IA 178 and the IA 148 Iowa Tax Credits Schedule. For individual, corporate, and fiduciary credits claimed at the entity level, report the credit on IA 148, Part I, using tax credit code 26. List each credit earned or received separately. For credits received from another pass-through entity, also complete the required entity information in IA 148, Part IV.
- IA 1065 or IA 1120S: Include IA 178 with the return. Report credits earned and received separately on Schedule B and each member’s allocated share on Schedule K-1, using tax credit code 26.
- IA 1041 credits allocated to beneficiaries: Report each beneficiary’s allocated share on IA 1041 Schedule K-1 using tax credit code 26.
Members and beneficiaries must report their allocated credit on IA 178, line 2, and include IA 178 with their own tax return.
Common mistakes
- Leaving required information out. The instructions warn that failure to provide information needed to verify the credit will result in denial of the claim.
- Combining donations that need separate lines. Use separate lines for different food organizations and different commodity types donated to the same organization.
- Using the wrong units. Report eggs by the number of eggs, not dozens or gross. Report meat and fresh produce in pounds, liquid dairy in gallons, and solid dairy in pounds.
- Using special pass-through allocations. Special allocations are not permitted. Allocate the credit according to each member’s share of the entity’s earnings.
- Forgetting the attachment or records. Include IA 178 with the tax return and keep the authorized receipts for possible later review.
Questions people ask
Do I need a tax credit certificate before claiming the credit?
No. Donor-producers do not need to receive a tax credit certificate from the Iowa Department of Revenue before claiming this credit.
How do I calculate the credit for my donations?
Multiply each line’s total donation value in Column F by 15% and enter the result in Column G. Add Column G and enter the total or $5,000, whichever is less, on Part II Total, line 1.
How do I determine a donation’s value?
Multiply the quantity reported in Column D by the commodity’s per-unit price on the date it was donated to the authorized food organization. Round fractional donation quantities to the nearest whole unit.
Where do I report a credit received from a pass-through entity?
Enter it on Part II Total, line 2. The instructions also require separate reporting of each pass-through credit claim on the applicable tax credit schedule.