Dozens of corporations doing business in Iowa got tax refunds from the State of Iowa because of a tax credit for research activities.
An Iowa Department of Revenue report shows 130 companies got $32.5 million in tax credit refunds from the state. That means the value of each company’s research activities tax credit was larger than what they owed in corporate income taxes.
For example, the state sent Rockwell Collins a $13.8 million tax refund in 2012. Deere and Company got a nearly $12 million refund. DuPont Pioneer got $8.5 million.
Critics of the system say it’s wrong to send such hefty tax refunds to these big corporations. Supporters of the research activities tax credit say the state benefits from the high-salary research jobs at these firms.