422.110  Income tax credit in lieu of refund.

In lieu of the fuel tax refund provided in sections 452A.17 to 452A.19, a person or corporation subject to taxation under divisions II or III of this chapter, except persons or corporations licensed under section 452A.4, may elect to receive an income tax credit for tax years beginning on or after January 1, 1975. The person or corporation which elects to receive an income tax credit shall cancel its refund permit obtained under section 452A.18 within thirty days after the first day of its tax year or the permit becomes invalid at that time. For the purposes of this section, "person" includes a person claiming a tax credit based upon the person's pro rata share of the earnings from a partnership or corporation which is not subject to a tax under division II or III of this chapter as a partnership or corporation. If the election to receive an income tax credit has been made, it remains effective for at least one tax year, and for subsequent tax years unless a change is requested and a new refund permit applied for within thirty days after the first day of the person's or corporation's tax year. The income tax credit shall be the amount of the Iowa fuel tax paid on fuel purchased by the person or corporation and used as follows:

1.  Motor fuel as defined in section 452A.2, subsection 17, used for the purpose of operating or propelling farm tractors, corn shellers, roller mills, truck-mounted feed grinders, stationary engines, for producing denatured alcohol within the state, for cleaning or dyeing, or for any purpose other than in watercraft or aircraft or in motor vehicles operated or intended to be operated upon the public highways.

2.  Special fuel, as defined in section 452A.2, used for the purpose of operation of corn shellers, roller mills, and feed grinders mounted on trucks.

3.  Motor fuel placed in motor vehicles and used, other than on public highways, in the extraction and processing of natural deposits.

4.  Motor fuel or special fuel used by a bona fide commercial fisher, licensed and operating under an owner's certificate for commercial fishing gear issued pursuant to section 482.4.

However, no credit shall be given with respect to motor fuel taken out of the state in fuel supply tanks of motor vehicles, motor fuel used in aircraft or watercraft, or motor fuel used in the performance of a contract which is paid out of state funds unless the contract for the work contains a certificate made under penalty for false certificate that the estimate, bid or price to be paid for the work includes no amount representing motor fuel tax subject to a credit. The right to a credit under this section is not assignable and the credit may be claimed only by the person or corporation that purchased the fuel.

Section History: Early form

  [C75, 77, § 422.86; C79, 81, § 422.110; 82 Acts, ch 1176, § 2]

Section History: Recent form

  86 Acts, ch 1141, § 19; 86 Acts, ch 1241, § 29; 88 Acts, ch 1205, §22, 23; 95 Acts, ch 155, §6, 7, 44

Internal References

  Referred to in § 422.111


  1995 amendments to unnumbered paragraph 1 and subsection 2 effective January 1, 1996; 95 Acts, ch 155, §44

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