Form Ia Franchise 4626f - Iowa Alternative Minimum Tax

Instructions for the IA Schedule 4626F:

Iowa Alternative Minimum Tax

Line 2: Enter the total amount from line 2a through 2o of federal form 4626.

Line 3: Enter the applicable amounts from lines 2l and 2m of federal form 4626.

Line 6: Enter the amount of adjusted current earnings adjustment shown on line 4e of the federal form

4626. Enter on line 6a, 75% of the tax exempt interest amount from line 3a of the Adjusted

Current Earnings (ACE) Worksheet.

Line 11: The net operating loss entered here must be reduced by the amount of items of tax preferences

and adjustments arising in the year of the net operating loss. The deduction for a net operating

loss applied to the current taxable year cannot exceed 90% of the alternative minimum

taxable income determined without regard for the net operating loss deduction on line 11. In

effect, the deduction is limited to 90% of line 10.

Line 13: The exemption amount of $40,000 must be reduced, but not below zero, by 25% of the

amount that line 12 exceeds $150,000.

Line 17: If line 15 is greater than line 16, subtract line 16 from line 15 and enter the difference as your

Iowa alternative minimum tax here and on the IA 1120F, line 14. If line 15 is less than line 16,

enter zero here and on the IA 1120F, line 14.

The federal 4626 must be enclosed with this return.

Instructions for the IA Schedule 8827F:

Iowa Alternative Minimum Tax Credit

Form 8827F should be completed to compute the Iowa Alternative Minimum Tax Credit, if any, for Iowa

alternative minimum tax incurred in prior tax years and to compute any Iowa Alternative Minimum Tax

Credit Carryforward that may be used in future tax years.

The Iowa Alternative Minimum Tax Credit may only be claimed to the extent that your regular tax liability

exceeds your tentative Iowa Alternative Minimum Tax for tax year 2016. Because the Iowa Alternative

Minimum Tax Credit does not expire, the credit claimed also cannot exceed regular tax liability after

applying claims to all other nonrefundable tax credits.

Please include a statement explaining any federal audits which have impacted your carryforward

reported on line 2. You must also file an amended Iowa tax return to reflect any previous year federal

audit changes.

Enter the claim information for the Iowa Alternative Minimum Tax Credit in Part I of the IA 148 Tax

Credits Schedule; use tax credit code 09 in column A and leave column B blank. Include this form with

the IA 1120F.

43-002c (07/18/16)

Form Ia Franchise 4626f - Iowa Alternative Minimum Tax - 2016 Page 3