Who May Claim Credit:
Resident and nonresident individuals, fiduciaries of estates and trusts, and corporations other than S corporations may claim a tax credit on their income tax returns for fuel on which Iowa fuel tax was paid and used off highway in an unlicensed vehicle.
This fuel tax credit is NOT available for casualty losses, transport diversions, pumping credits, blending errors, idle time, power take-offs, reefer units, exports by distributors, or excess tax paid on gasohol/E85. A refund can be claimed for those reasons alongside the Fuel Tax Credit.
The income tax credit may be claimed by partners of a partnership or shareholders of an S corporation. If a partner or shareholder is claiming an income tax credit for fuel purchased by a partnership or S corporation, form IA 4136 and a supplementary schedule showing the name of the partnership or S corporation, the Federal Employer Identification Number (FEIN) of that entity, the total amount of gallons purchased, the method of distribution, and the number of gallons to be claimed by each individual partner or shareholder must be attached to the individual return.