Iowa replaced its old Research Activities Credit with a new IEDA-administered R&D tax credit for tax years 2026 and beyond: up to 3.5% of eligible Iowa research spend, refundable, capped statewide at $40M per year, and limited to advanced manufacturing, bioscience, insurance/finance, and technology. Businesses must file a precertification application through the Opportunity Iowa Portal by Sept 30, 2026.
Iowa's new R&D tax credit requires precertification by Sept 30, 2026
Iowa startups in the four eligible sectors must submit the precertification application by Sept 30, 2026 or forfeit the credit on 2026 expenditures; agriculture and ethanol firms are excluded.
Source: McGuire Sponsel
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