Working with my project in debug I have no issues. However running it in IIS I am getting this error:
System.Data.SqlClient.SqlException: Login failed for us
Assuming you're intending to use Windows Authentication to impersonate the service account, you have to set up Windows Authentication in both IIS and ASP.NET.
In IIS, make sure that the Windows Authentication module is added and enabled. Also make sure your application pool is running under a domain account, not a local account.
In ASP.NET make sure the authentication mode attribute is set to "Windows"