What’s new in 2019 for Hawaii?
Hawaii has made the following changes to tax law for the 2019 tax year:
- Declaration of Estimated Income Tax for Individuals, Form N-1 and Individual Income Tax Extension Payment Voucher, Form N-101 are now considered obsolete. To make estimated tax and extension payments you will use Form N-200V, Individual Income Tax Payment Voucher.
- Alimony received by the taxpayer isn’t included in their income and the alimony payments made by the ex-spouse aren’t deductible for divorce decrees, certain modifications, and separation agreements after December 31, 2018.
- Military Reserve or Hawaii National Guard taxpayers may subtract up to $6,735 of their duty pay from their income after December 31, 2018.
Deductions and Credits
- For tax years after December 31, 2018, the cap for the Motion Picture, Digital Media, and Film Production Income Tax Credit is now $50,000,000.
- For tax years after December 31, 2018, a new nonrefundable credit has been established titled the Healthcare Preceptor Income Tax Credit. The credit is $1,000 for each volunteer based supervised clinical training rotation up to a maximum of $5,000.
- Hawaii provides tax benefits on investments in Hawaii for the qualified opportunity zones located in Hawaii only, after December 31, 2018.
- The tax credit for Research Activities has been extended through 2024. This allows the credit to be claimed for all research disregarding previous expenses and having an annual cap of $5,000,000.
- There is a new refundable credit for tax years 2020 through 2024 for major rehabilitation of a certified historic structure titled The Historic Preservation Income Tax Credit.
- For tax years 2022 to 2026 a new nonrefundable credit has been established to construct a new drydock at Pearl Harbor for the US Navy to use. The new credit is the Ship Repair Industry Tax Credit.