[{"_1":2,"_100":-5,"_101":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6503331,"mediaKeyId","5574763-e4e91eb71f42423076b15a9209f397bb","parentId",5574763,"title","Iowa shifts major business tax credits to Economic Development Authority; new caps and programs set","audioSeconds",577,"startMs",944000,"endMs",1521000,"viewUrl","/Search/View?dp=1&key=5574763-e4e91eb71f42423076b15a9209f397bb&start=944&end=1521","thumbnailUrl","https://assets.pipeline.soar.com/5574763-e4e91eb71f42423076b15a9209f397bb/thumbnail_944000.jpg","articleUrl","/articles/6503331/Iowa/Iowa-shifts-major-business-tax-credits-to-Economic-Development-Authority-new-caps-and-programs-set","mediaUrl","https://secure.pipeline.soar.com/6503331-0b07e35e6b686aea1d36e5cb3f1b8bcc/orig.mp4?Expires=1771081802&Signature=iiAReEZDGMmVb5H3nAPbygJHoB7UwPXOstI1QGob1GipBOwZs5FfpEvjXBiw3EVtN6YyMZH7wsXYEKLcbzZIxnUnOAEzZWipdSyt6EkTiLiim1TMCPhdlWTzKLu538aBB3F56JASPn2HkMZfY66a0zA7la2nTvsQ~nIlDcpxrjLXHvAArnuBSHzV9MiJBC22Z7snacgo3Yzpoev6ptBvowr5eiJypraiaP-iQ~-sCzq9TQpCoXDUxS-Y8xDBxYWF9zaNH~kSvltu7fmTDAjtbc~I0rGcy~MhZ7nMG9Ni5m4pLHbg~FDasHdAKmSWKHHwYCNQpMqrLECJwtlBGTapwg__&Key-Pair-Id=KUT5TJCACFTXG","author","IASource Link","date","2025-08-13T19:10:00.39Z","article","The Iowa Economic Development Authority (IEDA) will administer new and revised business tax-credit programs enacted during the 2025 legislative session, a Department of Revenue presenter said during an Iowa SourceLink webinar.This summary reviews the provisions described by Tyler Ackerson of the Iowa Department of Revenue and the implementation details that businesses should expect.

Ackerson said Senate File 657 replaces several existing incentives and moves administration of the state research activities credit from the Department of Revenue to IEDA. Under the new structure, IEDA will certify eligible businesses and allocate a capped research and development (R&D) credit. The R&D program is capped at $40,000,000 and will be available for tax years beginning on or after Jan. 1, 2026; certificates issued by IEDA will not be transferable. A taxpayer may not claim both the existing research activities credit and the new R&D credit on the same return.

Also under the IEDA omnibus (Senate File 657), the state established a “business incentives for growth” or BIG program to replace the prior high-quality jobs program. The BIG program includes sales-and-use tax refunds tied to construction and equipping of qualifying facilities and a qualifying investment tax credit amortized over five tax years. IEDA will determine application forms and submission frequency; Ackerson said refund requests for the sales-and-use component may be submitted no more frequently than quarterly and that interest will not accrue on those refund requests.

The package creates a seed investor credit that varies by location: 20% of an equity investment for qualifying businesses in urban areas and 35% for businesses in rural areas, with a maximum credit per taxpayer of $100,000. The seed investor credit is refundable or may be carried forward to the immediately succeeding tax year, but it may not be transferred.

A new sustainable aviation fuel production tax credit was also created under IEDA. That credit applies to fuel produced during designated calendar years (production years beginning in 2026 through a stated end year) and requires application to IEDA during the calendar year after production; IEDA cannot issue credits before July 1, 2026, and taxpayers cannot claim credits before Sept. 1, 2026. The fuel credit is refundable or may be carried forward and is repealed on Jan. 1, 2037.

Ackerson also described smaller program changes: tweaks to the MEGA (major economic growth attraction) program application frequency and refund remittance timing, expansion of who can qualify for the old research activities credit to include certain agriscience performers, and an extension of the E15 promotion tax credit expiration by two years (to Jan. 1, 2028). Several underused credits were repealed or scheduled for repeal; some changes are retroactive to Jan. 1, 2025, or earlier where specified.

Why it matters: the changes shift where businesses apply for some credits, impose new timing and application requirements, and create caps and location-based formulas that will affect project planning and cash flow for qualifying companies. Ackerson repeatedly advised businesses with detailed questions to contact IEDA directly because IEDA will administer many of these credits.

Implementation details and timing: many provisions take effect on dates ranging from July 1, 2025, to tax years beginning Jan. 1, 2026; some provisions are retroactive to Jan. 1, 2024 or Jan. 1, 2025 where noted in statute. For example, the research credit repeal and transfer provisions set out that the old credit remains available through the tax year beginning Jan. 1, 2025, but is repealed for tax years beginning on or after Jan. 1, 2026. The BIG program replaces the high-quality jobs program, which is phased out and eliminated at a date specified in the law.

Closing: Ackerson emphasized that questions about program rules, certification criteria, and application processes should be addressed to IEDA. The Department of Revenue will accept refund requests and perform audits where applicable, but the new credits will be allocated and certified by IEDA.","mediaType","Video","parentTitle","Iowa Tax Webinar | Iowa Department of Revenue Legislative Update","oneSentenceSummary","The Iowa Economic Development Authority will administer newly restructured business tax-credit programs enacted during the 2025 legislative session, including a capped R&D credit and location-based seed-investor credits.","taxTitle","IASource Link, Executive, Iowa","taxId",27595,"location","Iowa","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6503322,"Iowa enacts sports-wagering withholding rule and updates for tobacco, alcohol and lottery operations",3050,494000,3544000,"/Search/View?dp=1&key=5574763-e4e91eb71f42423076b15a9209f397bb&start=494&end=3544","https://assets.pipeline.soar.com/5574763-e4e91eb71f42423076b15a9209f397bb/thumbnail_494000.jpg","/articles/6503322/Iowa/Iowa-enacts-sports-wagering-withholding-rule-and-updates-for-tobacco-alcohol-and-lottery-operations","https://secure.pipeline.soar.com/6503322-5f30d9c445d44374a4bf854f87a80258/orig.mp4?Expires=1771081802&Signature=YUjMPXh3LQjw7qkDvVaQ7G5xAd~Snf51cAElNoSTzEz1-ETzpckK3502eb0aAaG6WF5msEUv-O9egdGB0aMbCxEepTchW99GcI2SRyU2Jp1PaBdYLCtjMj~iingI3pSC38Ybv-wJ7vhR6oT2lxNkK7RArYbtD7Fo51Y4JwkPSBq6GEdIU-LoVCu9TWHHzfynjZ3Tj6N5JSg6bwSJ0z6RwMqK4T4Ba59mzLZxSDxHK0QhbIH8xQs0ghaGHGpFu9XVvT5W1AiPU1qJD2SbIGrs49jG~xLI9NwjesVg5f3E28agYBHXjj6X64FM9zujXCX-DuXhbukT6xrF274J4iRmvA__&Key-Pair-Id=KUT5TJCACFTXG","The Iowa Department of Revenue summarized several sector-specific statutory changes enacted in 2025 that affect gambling withholding, tobacco permitting and filing, alcohol licensing, and lottery operations.

Sports wagering: Tyler Ackerson said Senate File 605 adds explicit language that all winnings from sports wagering are subject to state and federal income tax laws and requires state income-tax withholding when federal withholding rules apply. The department will couple state withholding to federal thresholds (federal reporting applies when proceeds exceed $5,000 and are at least 300 times the wager). Ackerson noted the state withholding rate is 3.8% under the state’s flat tax structure and that the sports-wagering withholding requirement is effective Jan. 1, 2026.

Tobacco: The department’s tobacco bill, enacted as Senate File 612 and related legislation, requires electronic filing for tobacco-related permits, applications, fees, reports and remittances that fall under specified Iowa Code chapters. For submissions showing no tax due that are filed non-electronically, a $50 penalty may apply; filers unable to file electronically may request director permission to use another method.

Alcohol: House File 470 includes multiple changes. The law clarifies that the state and its instrumentalities may hold alcohol licenses and permits, aligns state rules with federal practice to allow noncontiguous locations for native distilleries (subject to federal TTB approval), removes bonding requirements for certain Class A and special Class A beer and wine permit holders, expands the statutory definition of a mixed drink to include beer- and wine-based mixed drinks, and codifies administrative rules on pre-mixed drinks (infusion) for off-immediate consumption. Division 2 of the alcohol bill will not be effective until Nov. 10, 2025, to align with the fifth rollout of GovConnectIowa; that division requires licensed premises outside incorporated cities to use USPS-verified city addresses in the system for consistency across permits.

Beer and wine tax timing: House File 994 allows certain Class A beer and wine permit holders who reasonably expect and have not recently exceeded $2,500 in beer-barrel or wine-gallonage tax liability to report and remit those taxes quarterly rather than monthly; the change aligns reporting with the state fiscal year and is effective Jan. 1, 2026.

Lottery operations: House File 260 restricts Department of Revenue employees and certain household family members from playing the lottery to preserve integrity after state-government alignment. It also makes certain lottery records confidential to prevent sophisticated purchasers from using public-record disclosure to identify remaining large prizes and target purchases. Ackerson said this confidentiality change does not affect game rules, overall game odds, or published remaining prizes.

Why it matters: the changes impose new compliance steps for wagering operators and bettors (withholding and timing), tobacco vendors (mandatory electronic submissions), alcohol licensees (addressing noncontiguous operations and removing bond requirements), and department staff (lottery-play restrictions). Several provisions are phased in with effective dates in 2025–2026.

Ackerson closed by noting the department has posted guidance and will provide further implementation details via GovConnectIowa and GovDelivery.","Legislation enacted in 2025 clarifies state withholding on sports-wagering winnings, requires electronic filing for tobacco submissions, expands alcohol licensing flexibility, and tightens lottery employee and record rules, the Department of Revenue said in a webinar.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6503327,"Department of Revenue details technical tax-administration changes: e-filing, reporting, and information sharing",1372,593000,1965000,"/Search/View?dp=1&key=5574763-e4e91eb71f42423076b15a9209f397bb&start=593&end=1965","https://assets.pipeline.soar.com/5574763-e4e91eb71f42423076b15a9209f397bb/thumbnail_593000.jpg","/articles/6503327/Iowa/Department-of-Revenue-details-technical-tax-administration-changes-e-filing-reporting-and-information-sharing","https://secure.pipeline.soar.com/6503327-2bb938046ff58f23c4d87ca80cea82e4/orig.mp4?Expires=1771081802&Signature=gCxe2cjjT2BhrIbHHbmtO3I1Ab6J65CPNuWyWlTItZTu1~kmY73DlhyJdZXbJt~zwyx-ec72c9L2eo8MFB6cYNiYdVTHA-gELRLgKLBHc-lOYVqq84PtV0BELEzdivTB8A-L6c6SXuR2YL2d6ybin--wDXBWsACAT2bndypOlHlAmm6saFqyDRRFwD0r7g3x7NbIIcW~js2NQ-khGRlA4RdljoUgStG5RMvTQ-7uc9DT~7sy5ZA7wi1QiNp1JIoB~SdgdaEAY91VkL16OnbXa9rfZ2YpcH4kqMM3aVLcu5IF7ciygsfrDgOUiQmKgOHBoz41g1Ssz6FtJmIPN4cPAg__&Key-Pair-Id=KUT5TJCACFTXG","During a webinar hosted by Iowa SourceLink, a Department of Revenue presenter summarized House File 976 and several other enacted provisions that revise tax-administration procedures, confidentiality rules, and filing requirements.

Tyler Ackerson said the department secured statutory authority to share confidential taxpayer information with law enforcement when there is an indication of willful failure to file or a criminal offense under Title 10 of the Iowa Code. The department may also share limited taxpayer information with the state treasurer to help identify apparent owners of unclaimed property. Ackerson said the legislature agreed to eliminate a previously required annual report on recurrent taxpayer noncompliance effective July 1, 2025.

House File 976 includes numerous technical clarifications. It moves late property tax credit claims from the Department of Revenue to county treasurers, clarifies a two-year statute of limitations for central-assessment appeals when appealed to the department director, clarifies the farm tenancy income exclusion holding-period language and what constitutes 10 years of material participation, and updates rules for pass-through entities and estimated notices of assessment. Several sales-tax clarifications were made, including clearer language about tax liability on building materials used in construction (described as non-substantive clarifications) and moving direct-pay permit holders from semi-monthly to monthly filing frequency (with the associated threshold increasing from $4,000 to $8,000). Ackerson said those changes were effective July 1, 2025.

Ackerson described a new statutory penalty for taxpayers who are subject to an electronic-filing requirement but submit sales tax or tobacco submissions on paper. For sales tax returns that are paper-filed when the taxpayer is subject to electronic filing, the department will treat the return as not filed, estimate the tax due, issue a bill, and add a 5% penalty plus other applicable penalties and interest. The department recognizes an exemption process: filers unable to file electronically may request permission from the department director to use an alternative method.

Motor-fuel reporting and rate-calculation authority were clarified to allow the department to recalculate rates in the case of reporting errors or late reports; penalties now attach for late (not just nonfiled) fuel reports. The statute was adjusted to align electric fuel reporting period end dates with true month ends and due dates. The law also allows purchasers of electric fuel to provide an exemption certificate when sales are for non-taxable purposes such as sales to a city or county.

Other enacted changes summarized on the webinar included: exclusion of lump-sum retirement distributions from Iowa taxation (retroactive to Jan. 1 of the applicable tax year); an increase to the estimated income-tax threshold for making estimated payments from $200 to $1,000 effective Jan. 1, 2026; and cleanup of the statutory list of tax-credit programs subject to periodic evaluation (removing expired or repealed credits). Ackerson recommended subscribing to the department’s GovDelivery service for updates and emphasized that additional details and forms will be provided as the department implements these provisions.

Ackerson also reviewed new reporting and registration requirements for certain data center and web-search-portal incentives: eligible entities must register with the department and file an annual report by Jan. 31 describing backup power fuel and electricity purchased and used; exemptions for electricity and backup fuel are limited to 10 years (urban) or 15 years (rural) for new or expanding qualifying data centers and web search portal businesses, with future revenues from expiration directed to the Energy Infrastructure Revolving Fund.

Why it matters: the package creates enforcement and administrative mechanisms that affect filing behavior, vendor reporting, confidentiality, and how local and state officials interact on tax and property matters. Businesses subject to electronic-filing requirements should confirm filing methods and exemptions to avoid the new penalties.

Ackerson closed by noting effective dates vary by provision and that taxpayers with specific concerns should contact the Department of Revenue.","The Department of Revenue described a package of technical and administrative changes enacted in 2025, including mandatory electronic filing penalties for sales and tobacco filings, expanded information-sharing with law enforcement and the state treasurer, direct-pay filing frequency changes, and adjustments to estimated tax thresholds.","actionData","errors"]

Article not found

Iowa shifts major business tax credits to Economic Development Authority; new caps and programs set

Iowa enacts sports-wagering withholding rule and updates for tobacco, alcohol and lottery operations

Department of Revenue details technical tax-administration changes: e-filing, reporting, and information sharing