Iowa Biodiesel Blended Fuel Tax Credit 41-149

Biodiesel Blended Fuel Tax Credit 41-149
IA 8864 Iowa Biodiesel Blended Fuel Tax Credit (41149)
2022 IA 8864

Iowa Biodiesel Blended Fuel Tax Credit
tax.iowa.gov
Name(s):___________________________________________________________________________
Social Security Number (SSN) or Federal Employer Identification Number (FEIN): _______________
Pass-through entity legal name (if applicable): _____________________________________________
Pass-through FEIN: ____________________________ Tax period ending date: _________________
1. Total number of biodiesel fuel gallons containing a minimum of 5% to 10%
pure biodiesel sold at retail in Iowa during the tax year between
January 1, 2022 and December 31, 2022 ............................................................... 1. ______________
2. Biodiesel Blended Fuel Tax Credit for B5-B10 blends. Multiply line 1 by the
tax credit rate per gallon of $0.035 (three and one-half cents) ............................... 2. ______________
3. Total number of biodiesel fuel gallons containing a minimum of 11% pure
biodiesel sold at retail in Iowa during the tax year between January 1, 2022
and December 31, 2022 .......................................................................................... 3. ______________
4. Biodiesel Blended Fuel Tax Credit for B11 plus blends. Multiply line 3 by the
tax credit rate per gallon of $0.055 (five and one-half cents) .................................. 4. ______________
5. Total number of biodiesel fuel gallons containing a minimum of 11% to
19% pure biodiesel sold at retail in Iowa during the tax year after
January 1, 2023 (fiscal year filers only) ................................................................... 5. ______________
6. Biodiesel Blended Fuel Tax Credit for B11-B19 blends. Multiply line 5 by the
tax credit rate per gallon of $0.05 (five cents) (fiscal year filers only) ..................... 6. ______________
7. Total number of biodiesel fuel gallons containing 20% pure biodiesel sold at
retail in Iowa during the tax year after January 1, 2023 (fiscal year filers only) ..... 7. ______________
8. Biodiesel Blended Fuel Tax Credit for B20 blends. Multiply line 7 by
the tax credit rate per gallon of $0.07 (seven cents) (fiscal year filers only)........... 8. ______________
9. RESERVED FOR FUTURE USE ............................................................................ 9. ______________
10. RESERVED FOR FUTURE USE ............................................................................ 10. _____________
11. Biodiesel Blended Fuel Tax Credit. Add lines 2, 4, 6, 8, and 10. See Where
to Report This Tax Credit in instructions. ................................................................ 11. _____________
12. Pass-through Biodiesel Blended Fuel Tax Credit from partnership, Limited
Liability Company (LLC), S corporation, estate, or trust. See Where to
Report This Tax Credit in instructions ..................................................................... 12. _____________
Include this form with your return.

41-149a (10/21//2022)

2022 IA 8864 Instructions page 2
What’s new for tax year 2022
2022 Iowa Acts chapter 1067 (House File 2128),
modified the Biodiesel Blended Fuel Tax Credit
for biodiesel blended fuel sold on or after January
1, 2023. This will impact a tax year 2022 fiscalyear filer who sells biodiesel blended fuel at retail
in Iowa on or after January 1, 2023. The tax credit
rates have been changed to the following
beginning on January 1, 2023:
• $0.05 (five cents) per gallon sold at retail in
Iowa for B11-B19 blends. Gallons rated
below B-11 no longer qualify for Biodiesel
Blended Fuel Tax Credit.
• $0.07 (seven cents) per gallon sold at retail
in Iowa for B20 blends.
Additional tax credit rates for higher blends of
biodiesel blended fuel may be available in the
future if certain standards for those blends are
adopted by the Iowa Department of Agriculture
and Land Stewardship. This form will be
updated in the future if and when those
standards are adopted.

See Iowa Code section 422.11P and Iowa
Administrative Code rules 701—304.34 and
52.31 for more information.
Claiming this tax credit
Provide your name, Social Security Number
(SSN) or Federal Employer Identification
Number (FEIN), and tax period ending date.
Lines 5 through 8 only apply to fiscal-year filers.
If the retailer is a pass-through entity
(partnership, LLC, S corporation, estate, or
trust), the tax credit 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.
Report the tax credit to the Department and to
members as instructed below (see Where to
Report This Tax Credit).

About the Biodiesel Blended Fuel Tax Credit
An Iowa Biodiesel Blended Fuel Tax Credit is
available to retail dealers of diesel who operate
fuel pumps at an Iowa retail fuel site. Tank
wagons are considered retail fuel sites. To
qualify for the tax credit, retail dealers must sell
biodiesel blended fuel with a minimum
percentage of 5% by volume of biodiesel during
calendar year 2022, and a minimum of 11% by
volume of biodiesel on or after January 1, 2023.

If the taxpayer has received any Biodiesel
Blended Fuel Tax Credit from a pass-through
entity, indicate that amount on line 12 of the IA
8864. See Where to Report This Tax Credit
below.

For gallons sold prior to January 1, 2023, the
tax credit equals three and one-half cents
multiplied by the total number of gallons of
biodiesel blended fuel with 5% to 10% biodiesel
and five and one-half cents multiplied by the
total number of gallons of biodiesel with 11% or
higher biodiesel. For gallons sold on or after
January 1, 2023, the tax credit equals five
cents multiplied by the total number of gallons
of biodiesel blended fuel with 11% to 19%
biodiesel, and seven cents multiplied by the
total number of gallons of biodiesel blended
fuel with 20% biodiesel.

Any tax credit in excess of tax liability can be
refunded or credited to tax liability for the
following year.

File a separate IA 8864 for each pass-through
Biodiesel Blended Fuel Tax Credit received and
provide the required information regarding the
pass-through entity.

Include this form and the IA 148 with your IA
1040, IA 1041, or IA 1120.
Include this form with your IA 1065 or IA 1120S.

41-149b (12/08/2022)

2022 IA 8864 Instructions page 3
Where to report this tax credit:
Iowa Form:

Enter amounts
from lines 11
and 12 on:

1040
1120
1041
(amounts
claimed at
entity level)
1041
(amounts
allocated to
beneficiaries)

IA 148
Tax Credits
Schedule

•
IA 1041
Schedule K-1

•
•

and
IA 1065
Schedule K-1
IA 1120S
Schedule B

1120S

•
•

IA 1065
Schedule B
1065

Additional instructions:

•
•

and
IA 1120S
Schedule K-1

•

Report line 11 and line 12 amounts on the IA 148, Part II, using tax credit
code 52. List each tax credit claim earned or received separately.
For line 12 amounts from another pass-through entity, report required
information about the pass-through entity on the IA 148, Part IV. List each
pass-through tax credit claim separately.

Report the allocated share of line 11 and line 12 amounts on each
beneficiary’s IA 1041 Schedule K-1 using tax credit code 52. List each tax
credit claim earned or received separately.
Instruct the beneficiaries to report their allocated tax credit on line 12 of form
IA 8864 and include the IA 8864 with their tax return.
Report line 11 and line 12 amounts on the IA 1065, Schedule B as earned
by the entity (line 11) or received from another pass-through entity (line 12),
and use tax credit code 52. Also, report each member’s allocated share of
the tax credit on the IA 1065 Schedule K-1 using tax credit code 52. List
each tax credit claim earned or received separately on the Schedule B and
Schedules K-1.
Instruct the members to report their allocated tax credit on line 12 of form
IA 8864 and include the IA 8864 with their tax return.
Report line 11 and line 12 amounts on the IA 1120S, Schedule B as earned
by the entity (line 11) or received from another pass-through entity (line 12),
and use tax credit code 52. Also, report each member’s allocated share of
the tax credit on the IA 1120S Schedule K-1 using tax credit code 52. List
each tax credit claim earned or received separately on the Schedule B and
Schedules K-1.
Instruct the members to report their allocated tax credit on line 12 of form
IA 8864 and include the IA 8864 with their tax return.

41-149c (10/21/2022)