Line 23: Fuel Tax Credit

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Expanded Instructions
  • Line: 23
  • Step: 6
  • Step Subject: Refundable Credits and Payments
  • Instruction Year: 2023

Enter the amount of Fuel Tax Credit from the sum of IA 4136, lines 7 and 8. The federal form 4136 cannot be used. The Iowa credit does not apply to fuel used in on-road vehicles or pleasure boats.

Iowa Fuel Tax Refund Permit Number

If the taxpayer has filed a fuel tax refund claim during the tax year, the Fuel Tax Credit cannot be claimed, and the refund permit will become invalid if the tax credit is claimed. However, the Fuel Tax Credit is not available for casualty losses, transport diversions, pumping credits, off-loading procedures, blending errors, idle time, power takeoffs, refrigerated "reefer" units, export by distributors, or tax overpaid on blended fuel. A refund can be claimed for those reasons alongside the Fuel Tax Credit.

Fuel Tax Credit received from Pass-through Entities

For partnerships, limited liability companies (LLC), S corporations, estates, or trusts, the amount of fuel tax credit reported by each owner or beneficiary is based on their share of earnings or losses. Each owner / beneficiary's share of the credit is found on Part IVII of the owner’s or beneficiary's IA K-1. File a separate IA 4136 for each pass-through Fuel Tax Credit received and provide the required information regarding the pass-through entity.