State program
Iowa Research Activities Credit
One of the few fully refundable state research credits, available to companies in qualifying industries.
Program overview
Iowa's research activities credit is refundable, meaning companies receive the excess in cash even if they owe no Iowa income tax. Legislative changes narrowed eligibility to businesses in manufacturing, life sciences, software engineering, aviation and aerospace, and introduced a partial refundability schedule for larger claims. Companies participating in the High Quality Jobs Program may qualify for a supplemental credit at an increased rate.
Eligibility
Businesses in eligible industries conducting qualified research in Iowa and claiming the federal research credit. Certain service industries, retailers, wholesalers and agricultural producers are excluded.
Benefits
Refundable credit paid in cash to the extent it exceeds Iowa income tax liability, subject to statutory refundability limits.
Find out what your research actually qualifies for
A scoping conversation takes thirty minutes and costs nothing. You leave with a view on eligibility, likely credit range and the documentation you would need.