If you qualify for certain Hawaii tax credits, you may be able to reduce the amount of Hawaii income tax you owe. Hawaii offers several nonrefundable credits for eligible taxpayers, businesses, property owners, and investors. These credits are generally claimed using Hawaii credit forms and may be subject to specific eligibility requirements and documentation requirements.
Nonrefundable credits can reduce your Hawaii tax liability to zero, but they generally cannot increase your refund.
The following nonrefundable credits are available on your Hawaii return:
Credit for Taxes Paid to Another State
If income was taxed by both Hawaii and another state, you may qualify for a credit to help reduce double taxation.
Renewable Energy Technologies Income Tax Credit (Form N-342)
If you installed and placed in service a qualifying renewable energy system in Hawaii, you may qualify for this credit.
Energy Conservation Tax Credit
Certain qualifying energy conservation improvements and projects may qualify for this credit.
Enterprise Zone Tax Credit
Businesses participating in Hawaii's Enterprise Zone program may qualify for this credit.
Low-Income Housing Tax Credit
Taxpayers with qualifying low-income housing projects may be eligible to claim this credit.
Carryover of Low-Income Housing Tax Credit
Unused Low-Income Housing Tax Credit amounts from a prior year may be claimed as a carryover credit.
Employment of Vocational Rehabilitation Tax Credit
Employers who hired eligible vocational rehabilitation referrals may qualify for this credit.
Carryover of Employment of Vocational Rehabilitation Tax Credit
Unused Employment of Vocational Rehabilitation Tax Credit amounts from a prior year may be claimed as a carryover credit.
High Technology Business Investment Tax Credit
Certain investments in qualifying Hawaii technology businesses may qualify for this credit.
Individual Development Account Contribution Credit
Qualified contributions to an approved Individual Development Account program may be eligible for this credit.
Technology Infrastructure Renovation Tax Credit
Taxpayers with qualifying technology infrastructure renovation projects may qualify for this credit.
School Repair and Maintenance Tax Credit
Contributions made to approved public school repair and maintenance projects may qualify for this credit.
Carryover of School Repair and Maintenance Tax Credit
Unused School Repair and Maintenance Tax Credit amounts from a prior year may be claimed as a carryover credit.
Hotel Construction and Remodeling Tax Credit
Qualifying hotel construction, renovation, or remodeling projects may be eligible for this credit.
Residential Construction and Remodeling Tax Credit
Certain residential construction and remodeling projects may qualify for this credit.
Carryover of Renewable Energy Technologies Income Tax Credit
Unused Renewable Energy Technologies Income Tax Credit amounts from a prior year may be claimed as a carryover credit.
Capital Infrastructure Tax Credit
Certain investments in approved Hawaii infrastructure projects may qualify for this credit.
Cesspool Upgrade Tax Credit
Taxpayers who incur eligible costs to upgrade, convert, or replace a qualifying cesspool system may qualify for this credit.
Renewable Fuels Production Tax Credit
Taxpayers engaged in qualifying renewable fuels production activities may be eligible for this credit.
Organic Foods Production Tax Credit
Eligible taxpayers involved in qualifying organic food production activities may qualify for this credit.
Health Care Preceptor Tax Credit
Certain licensed health care professionals who provide clinical training and supervision to qualifying students may qualify for this credit.
Carryover of Health Care Preceptor Tax Credit
Unused Health Care Preceptor Tax Credit amounts from a prior year may be claimed as a carryover credit.
Carryover of Unused Earned Income Credit from Prior Year
Eligible Hawaii Earned Income Credit amounts carried forward from a previous year may be reported here.
Historic Preservation Tax Credit (Form N-325)
Taxpayers who rehabilitate and preserve certified historic properties may qualify for this credit.
Renewable Fuels Production Tax Credit Carryover (Form N-360)
Unused Renewable Fuels Production Tax Credit amounts from a prior year may be claimed as a carryover credit.
Pass-Through Entity Tax Paid Credit (Form N-362)
Owners of pass-through entities that elected to pay Hawaii Pass-Through Entity Tax (PTET) may qualify for this credit.
Carryover of Pass-Through Entity Tax Paid Credit (Form N-362)
Unused Pass-Through Entity Tax Paid Credit amounts from a prior year may be claimed as a carryover credit.
Important
Most Hawaii nonrefundable credits require additional forms, certificates, approval letters, or other supporting documentation. Refer to the instructions, here, for the specific credit you are claiming to determine eligibility and documentation requirements.
Program Entry
To claim the credits mentioned above, go to:
- State Section
- Edit Hawaii state return (3 dots)
- Begin on Credits
- Non-refundable Credits
Related Information
Hawaii also offers refundable tax credits that may increase your refund. For more information, see What Credits Are Available on My Hawaii Return?.