The Iowa E85 Gasoline Promotion Tax Credit is available to eligible retail dealers that sell qualifying E85 gasoline at Iowa retail fuel sites. The credit is intended to encourage the availability and sale of E85 gasoline through qualifying fuel pumps that meet Iowa program requirements. The credit is claimed using Form IA 135, Iowa E85 Gasoline Promotion Tax Credit.
Eligibility Requirements
To qualify for the Iowa E85 Gasoline Promotion Tax Credit, the taxpayer must:
- Be a retail dealer of gasoline in Iowa.
- Operate qualifying E85 gasoline pumps at an Iowa retail fuel site.
- Sell qualifying E85 gasoline that meets the applicable Iowa requirements and fuel standards.
E85 Gasoline Requirements
- For purposes of the credit, qualifying E85 gasoline generally refers to gasoline blended with approximately 68% to 83% ethanol by volume, with allowable seasonal variations permitted under applicable fuel standards.
- The fuel must meet the requirements established for E85 gasoline under Iowa law and applicable program rules.
Credit Calculation and Claiming the Credit
- Form IA 135 is used to calculate and claim the Iowa E85 Gasoline Promotion Tax Credit.
- The credit calculation is based on the number of qualifying E85 gasoline pumps and other requirements provided in the Form IA 135 instructions. Taxpayers must complete the form and retain supporting documentation to substantiate eligibility and the credit amount claimed.
Reporting Requirements
Eligible taxpayers should:
- Complete Form IA 135 to determine the allowable credit.
- Report the credit on the applicable Iowa tax return according to Iowa Department of Revenue instructions.
- Maintain records supporting qualifying E85 pump operation and E85 gasoline sales.
Important Notes
- The Iowa E85 Gasoline Promotion Tax Credit is a business-related credit available to qualifying retail fuel dealers.
- The credit is not available to individual taxpayers who only purchase or use E85 gasoline.
- Eligibility depends on meeting Iowa requirements for qualifying E85 gasoline pumps and sales.
- Taxpayers should follow the current Form IA 135 instructions for credit limitations and reporting requirements.
Source:
Form IA 135 - Iowa E85 Gasoline Promotion Tax Credit
Disclaimer: Always verify details with the official Federal or State Department of Revenue Forms and Instructions. This information is for general guidance and may not apply to all situations. For complex tax matters, consult a CPA or tax attorney.