The following refundable credits are available on your Hawaii return:
Refundable Food/Excise Tax Credit
You may qualify for this credit if your federal adjusted gross income is less than $60,000 ($40,000 if you’re filing as Single). For more information, see Form N-311, Refundable Food/Excise Tax Credit.
Credit for Low Income Household Renters
If you occupy and pay rent for a property within the state and your federal adjusted gross income is less than $30,000, and the rent for the year was more than $1,000, you may qualify for this credit.
Renewable Energy Tech Credit (N-342)
If you install and place in service an eligible renewable energy technology system in Hawaii, you may qualify to claim this credit. For more information on this credit please see our KB Article.
Credit for Child and Dependent Care Expenses
Certain payments made for child and dependent care (including payments made to the State of Hawaii A+ Program) may be claimed as a credit against your tax due.
Taxes withheld by a Partnership
If tax was withheld by a partnership, and you are taxable on a pro rata share of the entity’s gain on the sale, include ONLY the amount of your pro rata share of any net income taxes withheld and paid
by the partnership.
Capital Goods Excise Credit (N-312)
A taxpayer subject to Hawaii’s net income tax may claim a capital goods excise tax credit for the purchase or importation of eligible depreciable tangible personal property which is used by the taxpayer in a trade or business in Hawaii. For more information please see the information on Form N-312.
Fuel Tax Credit for Commercial Fishers (Form N-163)
This credit may be claimed by a principal operator of a commercial fishing vessel who purchases and actually uses the fuel to operate a fishing vessel for commercial purposes. For more information please see the information on Form N-163.
Motion Picture and Film Income Credit (Form N-340)
A taxpayer may claim an income tax credit of 22% of the qualified production costs incurred before January 1, 2033, by a qualified production in the City and County of Honolulu, and 27% of the qualified production costs incurred before January 1, 2033, by a qualified production in the Kauai, Maui, or Hawaii county. The total tax credits claimed per qualified production shall not exceed $17,000,000. (Schedule CR Instructions). For more information please see the information on Form N-340.
Tax Credit for Research Activities (Form N-346)
A qualifying taxpayer may claim a refundable tax credit for research activities for tax years beginning before January 1, 2030. In order to qualify for this tax credit, the qualified high technology business shall also claim a federal tax credit for the same qualified research activities under Internal Revenue Code (IRC) section 41. Qualified research expenses shall not include research expenses incurred outside Hawaii. Research expenses must be certified in order to claim the credit.
Renewable Fuels Production Tax Credit (N-360)
For taxable years beginning after December 31, 2021, each taxpayer producing renewable fuels that obtains a credit certificate issued by the Hawaii State Energy Office (HSEO) may claim a renewable fuels production tax credit.
Important Agricultural Land Qualified Agricultural Cost Credit (Form N-344)
For taxable years beginning after May 31, 2009 and before December 31, 2030, each taxpayer who incurs qualified agricultural costs may claim a refundable important agricultural land qualified agricultural cost tax credit for the taxable year in which the credit is properly claimed.
For more information, see Form N-344.
Credit From a Regulated Investment Company
A shareholder of a regulated investment company is allowed a credit for the tax paid to the State by the company on the amount of capital gains which by IRC section 852(b)(3)(D) is required to be included in the shareholder’s return. The regulated investment company will notify you of the undistributed capital gains amount and the tax paid, if any. If this credit applies to you, include the amount on Schedule CR, line 7b, and attach an explanation.
Child Passenger Restraint System Credit
If you are an individual who will file a tax return and purchased one or more new passenger child restraint systems, you may qualify for this credit. The limit for the Child Passenger Restraint System Credit is $25 per return, regardless of the cost or number of restraint systems purchased.
Program Entry
To claim the credits mentioned above, go to:
- State Section
- Edit Hawaii state return
- Begin on Credits
- Refundable Credits