The following 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 $50,000 ($30,000 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 live in and pay rent for a property within the state and your federal AGI is less than $30,000 and your rent for the year is 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
If you made payments for child and dependent care during the year, this credit may be claimed 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 4% credit is available to Hawaii businesses that place acquired qualifying business property in service during the taxable year. For more information please see the information on Form N-312.
Fuel Tax Credit for Commercial Fishers (Form N-163)
The principal operator of a commercial fishing vessel may claim an income tax credit for certain fuel taxes paid during the year. The credit will be equal to the fuel taxes imposed under section 243-4(a), Hawaii Revised Statutes (HRS), and paid by the principal operator during the taxable year. 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 (1) 20% of the qualified production costs incurred before January 1, 2026, by a qualified production in the City and County of Honolulu, and (2) 25% of the qualified production costs incurred before January 1, 2026, by a qualified production in the
Kauai, Maui, or Hawaii county. The total tax credits claimed per qualified production shall not exceed $15,000,000" (Schedule CR Instructions). For more information please see the information on Form N-340.
Tax Credit for Research Activities (Form N-346)
Note: The federal credit for increasing research activities must be claimed in order to claim this state tax credit.
To qualify for this credit, the qualified high technology business will also claim a federal tax credit for the same qualified research activities under Internal Revenue Code (IRC) section 41. Qualified research does not include research expenses incurred outside Hawaii. All research expenses must be certified in order to claim the credit.
" Act 261, SLH 2019, amends the Tax Credit for Research Activities by extending the credit through 2024, allowing the credit to be claimed for all qualified research expenses incurred in Hawaii without regard to the amount of expenses for previous years (base amount), and imposing an annual cap of $5,000,000, effective for taxable years beginning after December 31, 2019."
Renewable Fuels Production Tax Credit (N-360)
A new Renewable Fuels Production Tax Credit has been established for taxable years beginning after December 31, 2021. (1) The credit is available for 10 consecutive years beginning with the first taxable year the taxpayer claiming the credit begins producing at least 2,500,000,000 British thermal units (BTU) of renewable fuel per year; (2) the dollar amount of the credit is 20 cents per 76,000 BTU of renewable fuels; (3) the Hawaii State Energy Office must certify all claims for the credit, which cannot exceed $3,500,000 in any given year; and (4) allows the taxpayer to elect to have the credit be refunded to them.
Important Agricultural Land Qualified Agricultural Cost Credit (Form N-344)
Note: The Department of Agriculture may certify important agricultural land qualified agricultural cost tax credits through the 2021 tax year.
If you incur qualified agricultural costs you may be eligible to 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 the information on 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.
Credit for Income Taxes Paid to Other States and Countries:
If you have out-of-state income that is taxed by another state or foreign country and also by Hawaii, you may claim a credit against your Hawaii income for the net income tax you paid to the other state or foreign country. For more information please see our KB Article.