IDOR Issues Updated Guidance on DPAD

The Iowa Department of Revenue has released additional information regarding compliance with new tax changes concerning the Domestic Production Activities Credit (DPAD). The federal Tax Cuts and Jobs Act (TCJA) included a repeal of the federal DPAD for tax years beginning on or after Jan. 1, 2018. Iowa did not conform to this repeal for tax years beginning during 2018, and as a result, the DPAD will be available as a deduction for Iowa tax purposes for tax year 2018. However, the deduction will not be available for Iowa purposes for tax years beginning on or after Jan. 1, 2019. For a full list of reform guidance, visit the IDOR’s tax reform page. If you would like to receive notifications of resources and guidance issued by the department, subscribe to updates by selecting the tax topics of interest.