What’s new in 2020 for Hawaii?
Hawaii has made the following changes to tax law for the 2020 tax year:
- Hawaii adopted the following provisions for the CARES ACT:
- exclusion from gross income of loans forgiven under the paycheck protection program
- increases to non-taxable loans from retirement
- increases to certain charitable contributions limits
- exclusion from gross income of the amounts received as recovery rebates, under the CARES ACT (stimulus payments)
- The Renewable Energy Technologies Income Tax Credit is amended by repealing for commercial projects with a total output capacity of 5 megawatts or greater for taxable years beginning after December 31, 2019.
- 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.
- Military Reserve or Hawaii National Guard taxpayers may subtract up to $6,943 of their duty pay from their income after December 31, 2019.
Deductions and Credits
- The Tax Credit for Research Activities: can be claimed for all qualified research expenses without regard to the amount of expenses for previous years and imposing an annual cap of $$5,000,000 for taxable years after December 31, 2019.
- The Historic Preservation Income nonrefundable credit: for substantial rehabilitation of a certified historic structure.
- The Ship Repair Industry nonrefundable credit: for constructions of a new drydock at Pearl Harbor for use by the United States Navy