Question

Does Iowa have a corporate alternative minimum tax? if so, is it based on federal alternative minimum taxable income or Iowa's minimum taxable income?

Answer 1

Yes , Lowa have a corporate alternative minimum tax

The Iowa Alternative Minimum Tax (Iowa AMT) Credit Came into effect for tax years from the year January 1, 1988. A taxpayer is eligible for Iowa Alternative Minimum Tax Credit only if Corporate paid Iowa alternative minimum tax in previous years that is only based on adjustments and tax preferences.

The quality of tax credit is that it can not be transfer to another person and also with this a tax credit is non refundable means whose refund is not given. but there is one thing that it is never be expired it can be claimed against taxes on franchises, income of corporate , income of individual etc.

The Lowa alternative minimum tax is also said or considered as adjusted minimum tax because here the taxpayers are eligible to take credit of it after facing the rule or situation of lowa alternative minimum tax which is in a prior tax year. It is based on a Federal alternative minimum taxable income.A alternative minimum tax can be imposed or leived against federal individual income tax and with against trustees, corporations ,estates etc.