IA 4136 — Iowa Fuel Tax Credit (with instructions)

# preamble

2025 IA 4136

# Iowa Fuel Tax Credit

Legal name: ______________________________________________________________________________ Doing business as: _______________________________________________________________________ Federal Employer Identification Number (FEIN) or Social Security Number (SSN): _______________________ Pass-through entity (if applicable): _____________________________________________________________ Pass-through FEIN: ___________________________________ Tax period ending date: _________________ Check appropriate box(es): Fuel used for: 1. Farming ☐ 2. Commercial ☐ 3. Commercial fishing ☐ 4. Other ☐ (specify) _______________ 1. Gasoline Invoice Date Invoice Gallons Highway Gallons Claimed Gallons Tax Rate Fuel Tax Paid Sales Tax Fuel Tax 01/0 1/202 5 to end of t ax year $0.30 0 $ $ $ 2. Ethanol Blended Gasoline - E- 10 to E -14 Invoice Date Invoice Gallons Highway Gallons Claimed Gallons Tax Rate Fuel Tax Paid Sales Tax Fuel Tax 01/01/202 5

to end of tax year $0.300 $ $ $ 3. Ethanol Blended Gasoline - E- 15 or Higher Invoice Date Invoice Gallons Highway Gallons Claimed Gallons Tax Rate Fuel Tax Paid Sales Tax Fuel Tax 3a. 01/01/202 5 to 06/30/202 5 $0.255 $ $ $ 3b. 07/01/202 5 to end of tax year $0.265 $ $ $ 4. Undyed Diesel or Undyed Biodiesel Fuel - B- 0 to B -19 Invoice Date Invoice Gallons Highway Gallons Claimed Gallons Tax Rate Fuel Tax Paid Sales Tax Fuel Tax 01/01/202 5

to end of tax year $0.325 $ $ $

2025 IA 4136, page 2 5. Undyed Biodiesel Fuel - Blends B -20 or Higher Invoice Date Invoice Gallons Highway Gallons Claimed Gallons Tax Rate Fuel Tax Paid Sales Tax Fuel Tax 01/ 01/202 5 to end of tax year $0. 295 $ $ $ 6. Special Fuel - Liquified Petroleum Gas ( LPG) Invoice Date Invoice Gallons Highway Gallons Claimed Gallons Tax Rate Fuel Tax Paid Sales Tax Fuel Tax 01/01/ 202 5 to end of tax year $ 0.300 $ $ $ 7. Fuel Tax Credit Add Fuel Tax Credit columns from lines 1 through 6. See Where to Report This Tax Credit in instructions....................................................................................................7. $ __________ 8. Pass-through Fuel Tax Credit received from partnership, limited liability company (LLC), S corporation, estate, or trust. See Where to Report This Tax Credit in instructions .........................................................8. $ __________ 9. Total Fuel Tax Credit Add lines 7 and 8 ...............................................................................................................9. $ __________

2025 IA 4136 I nstructions, page 1 Recent Changes The fuel tax rate for E -15 or higher has increased from $0.255 per gallon to $0.265 per gallon effective July 1, 2025. All other fuel tax rates are unchanged. About the Iowa Fuel Tax Credit Ethanol Blended Gasoline is separated into two different categories: E- 10 to E -14 and E -15 or higher (including E-85). Taxpayers may claim a tax credit on their income tax returns for fuel that was purchased during the tax period to be used in unlicensed vehicles for nonhighway purposes. If you filed a fuel tax refund claim during the tax year, you cannot also claim a Fuel Tax Credit; your refund permit will become invalid if you claim a Fuel Tax Credit . However, the Fuel Tax Credit is not available for casualty losses, transport diversions, idle time, pumping credits, off -loading procedures, reefer units, blending errors, power take-offs, ready mix, solid waste , export by distributors, or tax overpaid on blended fuel. A refund can be claimed for those reasons alongside the Fuel Tax Credit. Dyed diesel fuel is always sold free of Iowa fuel tax. No Fuel Tax Credit may be claimed for dyed diesel fuel. All undyed special fuel used in watercrafts is eligible for the Fuel Tax Credit; however, gasoline used in a watercraft does not qualify for the tax credit unless the watercraft was used by a commercial fisher licensed and operating under an owner's certificate for commercial fishing gear issued pursuant to Iowa Code section 482.7.

# Pass-Through Entities - Allocation of Tax

The tax credit calculated on lines 1 through 7 by a pass-through entity (partnership, LLC, S corporation, estate, or trust) is allocated to the members. The tax credit allocation must be in the ratio of each member's share of the earnings of the entity to the entity's total earnings. Special allocations are not permitted. The pass -through entity must file the IA 4136 and the f ederal 4136 with its return. Report the tax credit to the Department and to members as instructed (see Where to Report T his Tax Credit). If the taxpayer earns a tax credit and is a member of a pass-through entity that has passed through a tax credit to the taxpayer, calculate the tax credit on IA 4136, lines 1 through 7 and enter the pass - through tax credit on line 8. Report each tax credit separately. Claiming This Tax Credit Federal Employer ID Number or Social Security Number: Enter your Federal Employer ID Number (FEIN) or Social Security Number (SSN). Do not enter your canceled fuel tax refund permit number. Fuel Used For: Mark the proper box(es) to indicate how the fuel was used. Review your invoices to verify that Iowa fuel tax was paid before claiming a tax credit. This area must be completed. Lines 1-6: Invoice Gallons - Based on the invoice date, enter the total number of whole gallons of fuel purchased on which Iowa fuel tax was paid during your tax year. Invoices must be issued in the name of the taxpayer or entity claiming the tax credit . Retain invoices for three years after your return is filed. Highway G allons - Enter the number of whole gallons included in invoice gallons that were used on the highway. Claimed G allons - S ubtract highway gallons from invoice gallons to calculate claimed gallons. Fuel Tax Paid - Multiply the claimed gallons by the appropriate tax rate per gallon in each row. Sales Tax - Iowa sales tax is owed on all fuel claimed for the tax credit except that used in exempt activities such as farming and processing. To compute sales tax , within each row, calculate the average cost per gallon of fuel purchased minus the relevant per gallon Iowa fuel tax. Multiply the result by the claimed gallons. Multiply this amount by the Iowa sales tax rate of 6% to calculate the sales tax owed. Fuel Tax Credit - Subtract sales tax from the fuel tax paid. Any Fuel Tax Credit claimed must be net of sales tax owed.

2025 IA 4136 Instructions, page 2 Line 8 : If the taxpayer has received any pass - through Fuel Tax Credit from a partnership, LLC, S corporation, estate, or trust, enter that amount on this line. File a separate IA 4136 for each pass - through Fuel Tax Credit received and provide the required information regarding the pass -through entity. See Where to Report This Tax Credit. Include this form and the federal 4136 with your IA 1040 (41-001), IA 1041 (63-001), IA 1120 (42- 001), IA 1120S (42-004), or IA 1065 (41-016). Where to Report This Tax Credit Iowa Form: Enter the amounts from lines 7 and 8 on: Additional Instructions: 1040 Main return, Step 6, line 23 Report your total fuel tax credit from line 9. 1120 Main return Schedule C1, line 1 Report your total fuel tax credit from line 9. 1041 Main return, line 42 (amounts claimed at entity level) and IA 1041 Schedule K-1 (amounts allocated to beneficiaries) • If any amount of the tax credit is allocated to beneficiaries, do all of the following: o Report the allocated share of line 7 and 8 amounts on each beneficiary's IA 1041 Schedule K-1 using tax credit code 4136. List each tax credit claim earned or received separately. o Instruct beneficiaries to report their allocated tax credit on line 8 of the IA 4136 and include the IA 4136 with their return. 1065 Main return Schedule B and IA 1065 Schedule K-1 • Report line 7 and 8 amounts on the IA 1065 Schedule B as earned by the entity (line 7) or received from another passthrough entity (line 8) and use tax credit code 4136. Also, report each member's allocated share of the tax credit on the IA 1065 Schedule K-1 using tax credit code 4136. List each tax credit claim earned or received separately on Schedule B and Schedule K-1. • Instruct members to report their allocated tax credit on line 8 of the IA 4136, and include the IA 4136 with their return. 1120S Main return Schedule B and IA 1120S Schedule K-1 • Report line 7 and 8 amounts on the IA 1120S Schedule B as earned by the entity (line 7) or received from another passthrough entity (line 8) and use tax credit code 4136. Also, report each member's allocated share of the tax credit on the IA 1120S Schedule K-1 using tax credit code 4136. List each tax credit claim earned or received separately on Schedule B and Schedule K-1. • Instruct members to report their allocated tax credit on line 8 of the IA 4136 and include the IA 4136 with their return.