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                                                       STATE OF HAWAII—DEPARTMENT OF TAXATION

    2023                           INSTRUCTIONS FOR FORM N-70NP
  (REV. 2023)
                         EXEMPT ORGANIZATION BUSINESS INCOME TAX RETURN
                        (Section references are to the Internal Revenue Code (IRC), unless otherwise indicated) 

                                                       gross income  from an unrelated  trade or busi-        (5) That  consists  of  qualified  public  entertain-
ATTENTION:                                             ness of $1,000 or more. Gross income is gross          ment activities regularly carried on by a sec-
  Hawaii has not adopted the increased ex-             receipts minus the cost of goods sold. An orga-        tion 501(c)(3), (4), or (5) organization as one 
pensing deduction  under section 179 (Hawaii           nization must file this return if it must file federal of its substantial exempt purposes (see sec-
limit is $25,000) or the bonus depreciation provi-     Form 990-T to report unrelated trade or business       tion  513(d)(2)  for  the  meaning  of  qualified 
sions.                                                 income.                                                public entertainment activities); or
  Hawaii has not adopted the domestic produc-          Fiduciaries for IRAs and MSAs described in             (6) That consists of qualified convention or trade 
tion deduction under section 199.                      sections 408(a) and 220(d) that have $1,000 or         show activities regularly conducted by a sec-
                                                       more of Hawaii unrelated trade or business gross       tion 501(c)(3), (4), (5), or (6) organization as 
Where to Get Tax Forms                                 income must file Form N-70NP.                          one of its substantial exempt purposes (see 
  Hawaii tax forms, instructions, and schedules        Section  235-2.4(ff),  HRS,  adopted  sections         section 513(d)(3) for the meaning of qualified 
may  be  obtained  at  any  taxation  district  office 512 to 514 (with respect to taxation of business       convention and trade show activities); or
or from the Department of Taxation’s website at        income of certain exempt organizations). Further,      (7) That  furnishes  one or more services de-
tax.hawaii.gov, or you may contact a customer          for a person described in section 401 or 501, as       scribed in section 501(e)(1)(A) by a hospital 
service representative at 808-587-4242 or 1-800-       modified  by  section  235-2.3,  HRS,  the  tax  im-   to one or more hospitals subject to conditions 
222-3229 (Toll-Free).                                  posed by section 235-51 or 235-71, HRS, shall          in section 513(e); or
Changes You Should Note                                be imposed upon  the  person’s  unrelated busi-        (8) That consists of qualified pole rentals (as de-
                                                       ness taxable income.
Act 56, Session Laws of Hawaii (SLH) 2023 –                                                                   fined in section 501(c)(12)(D)), by a mutual or 
  This act amends Hawaii Income Tax Law under          However, a section 501(c)(1) corporation that          cooperative telephone or electric company; or
  chapter 235, Hawaii Revised Statutes (HRS), to       is  an  instrumentality of  the  United States  and    (9) That includes activities relating to the distribu-
  conform to certain provisions of the IRC, as         both organized and exempted from tax by an Act         tion of low-cost articles, each costing $12.50 
  amended as of December 31, 2022.                     of Congress, does not have to file. (See also sec-     or less by an organization described in sec-
                                                       tion 235-7(a)(1), HRS.)
Act 217, SLH 2022  –  This act amends  the                                                                    tion 501 and contributions  to which are de-
  motion  picture,  digital  media,  and  film         If the organization  is a shareholder in a             ductible under section 170(c)(2) or (3) if the 
  production  income tax credit for  taxable           Regulated  Investment  Company,  and  is  filing       distribution is incidental to the solicitation of 
  years beginning  after December  31, 2022            Form N-70NP only to obtain a refund of income          charitable contributions; or
  by (1) changing  the repeal  date from Janu-         tax paid on undistributed long-term capital gains,     (10) That includes the exchange or rental of donor 
  ary 1, 2026 to January 1, 2033; (2) increas-         complete the heading and signature areas, and          or membership lists between organizations 
  ing the credit amount from 20% of qualified          enter the amount of credit on line 17 and attach       described in section 501 and contributions to 
  production  costs to 22%  in a county with a         Schedule CR. Also, indicate at the top of the re-      which are deductible under section 170(c)(2) 
  population of over 700,000, and from 25% of          turn, “Claim for Refund.”                              or (3); or
  qualified production costs to 27% in a county        What Is an Unrelated Trade or                          (11) That consists of bingo games as defined in 
  with a population of 700,000 or less; (3) in-                                                               section 513(f). Generally, a bingo game is not 
  creasing the credit ceiling from $15,000,000         Business
                                                                                                              included in any unrelated trade or business if:
  per  qualified  production  to  $17,000,000  per     An unrelated trade or business is any trade 
  qualified production; (4) reducing the amount        or business that is regularly carried on, and that     (a) Wagers are placed, winners determined, 
  of qualified productions costs from $200,000         is not substantially related to the organization’s     and prizes distributed in the presence of 
  to $100,000;  (5) removing  the requirement          exempt purpose or function (aside from the need        all persons wagering in that game;
  for productions to submit a verification review      of the organization for income or funds or the use     (b) The  games do not compete with bingo 
  by a qualified certified public accountant; (6)      it makes of the profits); or generally, for section    games conducted by for-profit businesses 
  requiring  the report by the Department of           501(c)(7), (9), or (17) organizations, income de-      in the same jurisdiction; and
  Business Economic Development  and Tour-             rived  from  non-members  with  certain  modifica-     (c) The games  do not violate  State or local 
  ism (DBEDT) to include  the dollar  amount           tions (see section 512(a)(3)(A)); or for a section     law; or
  claimed, name of the company, and name of            511(a)(2)(B) state  college or  university,  income 
  the  qualified  production  of  the  taxpayer;  (7)  derived from activities not substantially related to   (12) That consists of soliciting and receiving quali-
  changing the time frame for DBEDT to issue           exercising or performing any purpose or function       fied sponsorship payments that are solicited 
  a letter to the taxpayer claiming the tax credit;    described in section 501(c)(3).                        or received after December 31, 1997. Gen-
                                                                                                              erally, qualified sponsorship payment means 
  and (8) requiring taxpayers to submit a fee to       An unrelated trade or business is not a trade          any payment to a tax-exempt organization by 
  DBEDT.                                               or business:                                           a person engaged in a trade or business in 
General Instructions                                   (1) In  which substantially all the  work  is  per-    which  there is no arrangement  or expecta-
                                                       formed for the organization without compen-            tion of any substantial return benefit by that 
Filing Requirements                                    sation; or                                             person — other than the use or acknowledg-
  Required Attachment.—A copy of the orga-             (2) That is carried on by a section 501(c)(3) or       ment of that person’s name, logo, or product 
nization’s  federal  Form  990-T  as  filed  with  the 511(a)(2)(B) organization mainly for the con-          lines  in connection with the activities of the 
Internal Revenue Service MUST be attached to           venience of its members, students, patients,           tax-exempt organization.  See section 513(i) 
the Form N-70NP filed with Hawaii.                     officers, or employees; or                             for more information.
  Caution: The mere attachment of a copy               (3) That sells items of work-related equipment         A trade or business is any activity carried on 
  of the federal Exempt Organization Busi-             and clothes, and items normally sold through           for the production of income from selling goods 
  ness Income Tax Return, Form 990-T, will             vending machines, food dispensing facilities           or performing services. An activity does not lose 
  not be acceptable as a substitute for fully          or by snack bars, by a local  association  of          its identity as a trade or business merely because 
  completing the Hawaii Exempt Organiza-               employees described in section 501(c)(4), or-          it is carried on within a larger group of similar ac-
  tion Business Income Tax Return, Form                ganized before May 27, 1969, if the sales are          tivities which may or may not be related to the ex-
  N-70NP.                                              for the convenience  of its members at their           empt purpose of the organization. If, however, an 
                                                       usual place of employment; or                          activity carried on for profit is an unrelated trade 
Who Must File                                                                                                 or business, no part of it can be excluded from 
  Any organization  exempt under section               (4) That sells  merchandise  substantially  all  of    this classification merely because it does not re-
501(a)  must  file  Form  N-70NP  if  it  has  Hawaii  which  was received by the organization  as            sult in profit.
                                                       gifts or contributions; or

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Not  substantially related to  means that  the         to enter a payment agreement after you receive          Underpayment  of estimated  taxes.—The 
activity that produces the income does not con-        a billing  notice for the balance  due. Please be       Department imposes the penalty for the under-
tribute importantly to accomplishing the exempt        aware that penalty and interest continue to ac-         payment of estimated tax as provided in section 
purposes of the organization, other than the need      crue on the unpaid tax amount even though you           235-97(f), HRS. If  applicable,  this penalty shall 
for  funds,  etc.  Whether an activity  contributes    have not yet received a billing notice. Payments        be added  to the tax for the taxable  year in an 
importantly depends in each case on the facts          will be accepted and applied to the organization’s      amount determined at the rate of 2/3 of 1% per 
involved.                                              tax liability; however, to ensure that the organiza-    month, or part of a month, upon the amount of 
                                                       tion’s payments are applied correctly, your check       the underpayment  for  the period of  the under-
When to File                                           or money order must have: (1) the organization’s        payment. Generally, if at least: (1) 60% of the tax 
Generally, you must file Form N-70NP by the            name as shown on the return clearly printed on          shown on the 2023 tax return; or (2) 100% of the 
20th day of the fourth month after the end of the      the check, (2) the organization’s  federal em-          tax shown on the 2022 return is not prepaid, a 
organization’s tax year.                               ployer identification number (FEIN), and (3) the        penalty for not paying enough estimated tax may 
Note:     Under Hawaii Tax Law, certain tax            tax year and form number being filed (e.g., 2023        be charged. For more information regarding the 
credits must be claimed within 12 months               N-70NP). If a payment is being made with this           underpayment penalty and special rules for farm-
from the close of the tax year.                        return, attach your check or money order where          ers and fishermen, see Form N-210.
                                                       indicated  on the front of Form N-70NP. Form 
Hawaii has adopted the IRC provision to al-            N-201V  is no longer  required  when making  a          Consolidated Returns
low  documents  and  payments  delivered  by a         payment with your return.                               The consolidated return provisions of section 
designated private delivery service to qualify for                                                             1501 do not apply to exempt organizations, ex-
the “timely mailing treated as timely filing/paying    Estimated Tax                                           cept for organizations having title holding com-
rule.” The Department of Taxation (Department)         If the organization  expects to have  a tax li-         panies.  If a title holding  corporation described 
will conform to  the  Internal Revenue Service         ability on its tax return for the year, submit your     in section 501(c)(2) pays any amount of its net 
(IRS)  listing of  designated private delivery ser-    payment with Form N-201V, Business Income               income for a tax year to an organization exempt 
vice and type of delivery services qualifying un-      Tax Payment Voucher. Estimated payments are             from tax under section 501(a) (or would except 
der this provision. Timely filing of mail which does   paid  in four installments. Form N-201V can be          that  the expenses  of  collecting its  income ex-
not bear the U.S. Post Office cancellation mark or     filed electronically at hitax.hawaii.gov.               ceeded that income), and the corporation and or-
the date recorded or marked by the designated                                                                  ganization file a consolidated return as described 
delivery service will be determined by reference       Trusts  required  to  file  Form  N-70NP  should 
to other competent evidence. The private deliv-        use the Estimated Tax Computation  For Trusts           below, then treat the title holding corporation as 
ery service can tell you how to get written proof      Worksheet on page 6 of these instructions to            being organized and operated for the same pur-
of the mailing date.                                   determine the amount of the organization’s es-          poses as the other exempt organization (in addi-
                                                       timated tax due.                                        tion to the purposes described in section 501(c)
If you are filing your return after the prescribed                                                             (2)).
due date, the refund shown may be limited or dis-      An organization on a calendar  year basis 
allowed due to the statute of limitations. In gen-     must pay the first installment, ¼ of the estimated      Two organizations  exempt from  tax  under 
eral, a claim for refund or credit for overpaid in-    tax due, on or before April 20, the second install-     section 501(a), one a title holding company, and 
come taxes must be filed within three years after      ment on or before June 20, the third installment        the  other  earning  income  from  the  first,  will  be 
the return is filed for the taxable year, within three on or before September 20 of the tax year, and          includible  corporations for  section 1504(a). If 
years of the due date for filing the return, or within the fourth installment on or before January 20 of       the organizations meet the definition of an affili-
two years from when the tax is paid, whichever         the year following the close of the calendar year.      ated group, and the other relevant provisions of 
is later. For purposes of determining whether a        An organization on a fiscal year basis must pay         Chapter 6 of the IRC, and these organizations 
refund or credit is allowed, taxes paid on or be-      the first installment on or before the 20th day of      are all Hawaii corporations, then these organiza-
fore the due date of the return (e.g. estimated tax    the  fourth  month  of  the  fiscal  year,  the  second tions may file a consolidated return. The parent 
payments) are considered paid on the due date          installment on or before the 20th day of the sixth      organization must attach Form N-304, Affiliations 
of the return, without considering an extension of     month of the fiscal year, the third installment on      Schedule, to the consolidated return. For the first 
time to file the return.                               or before the 20th day of the ninth month of the        year a consolidated return is filed, the title holding 
                                                       fiscal year, and the fourth installment on or before    company must attach Form N-303, Authorization 
Six-month automatic extension of time to               the 20th day of the first month following the close     and Consent of a Subsidiary Corporation to be 
file. Section 18-235-98,  Hawaii  Administrative       of the fiscal year.                                     Included in a Consolidated Income Tax Return.
Rules, allows an automatic extension of time to                                                                See federal Regulations section 1.1502-100 
file a return without filing an application for exten- In the case of any underpayment of estimated 
sion. This extension does not include an exten-        tax, there shall be added to the tax, an amount         for more information on consolidated returns.
sion of time to pay. File Form N-201V, Business        determined at the rate of 2/3 of 1% a month or          Accounting Methods
Income Tax Payment Voucher,  to make a pay-            part of a month on the amount of tax underpaid 
ment (if applicable). File Form N-201V by the          as provided under section 235-97(f), HRS. Willful       You  must  figure  taxable  income  using  the 
regular  due date of the return. Federal  Form         failure to  make a  required declaration of  esti-      method of accounting regularly  used in keep-
7004 is not allowed  as a substitute for Hawaii        mated tax is an offense punishable as provided          ing the organization’s books and records.  The 
Form N-201V.  Form N-201V may be electroni-            under section 235-105, HRS.                             method  used  must  clearly  reflect  income.  See 
                                                                                                               section 446.
cally filed (e-filed) at hitax.hawaii.gov.             Penalties and Interest                                  Unless the law specifically permits, you may 
Where to File                                          Late filing of return.—The penalty for failure          not change  the method of accounting used to 
If you are enclosing a check or money order            to file a return on time is assessed  on the tax due    report income in earlier  years (in whole  or in 
with your tax return, mail your return with pay-       at a rate of 5% per month, or part of a month, up       part)  without  first  getting  consent  on  federal 
ment to:                                               to a maximum of 25%.                                    Form 3115, Application for Change in Accounting 
                                                       Failure to pay after filing timely returns. —           Method. If  a change  in accounting  method is 
Hawaii Department of Taxation                          The penalty for failure to pay the tax after filing a   made, attach an approved copy of federal Form 
P.O. Box 1530                                          timely return is 20% of the tax unpaid within 60        3115 to the first return affected by such a change. 
Honolulu, HI  96806-1530                               days of the prescribed due date.                        If the change qualifies for an automatic change 
                                                                                                               request on federal Form 3115, attach a copy 
If you are not enclosing a payment with                These penalties are in addition to any interest         of  the  Form  3115  filed  with  the  IRS  to  the  first 
your return, mail your return to:                      charged on underpayment or nonpayment of tax.           Hawaii return affected by the change.
Hawaii Department of Taxation                          Interest.—Interest  at  the  rate  of  2/3  of  1% 
P.O. Box 3559                                          per  month or part of a month shall be assessed         Rounding Off to Whole-Dollar 
Honolulu, HI 96811-3559                                on unpaid taxes and penalties beginning with the        Amounts
Payment of Tax                                         first  calendar  day  after  the  date  prescribed  for The Department  is requiring  taxpayers to 
                                                       payment, whether or not that first calendar day         round off cents to the nearest whole dollar for all 
The tax may be paid by money order or by               falls on a Saturday, Sunday, or legal holiday.          dollar entries on the tax return and schedules.  
check made  payable  to the “Hawaii  State  Tax 
Collector”  in U.S. dollars  drawn  on any U.S.        Interest will be computed on the sum of tax             To do so, drop amounts under 50 cents and in-
bank. Do not send cash. If the organization can-       due and penalties imposed.                              crease amounts from 50 to 99 cents to the next 
not pay the full amount that is owed, you can ask                                                              dollar. For example:  $1.39 becomes $1 and 

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$2.69 becomes $3. If you have to add two or                be waived and you must first carry the farming        Page 1, Form N-70NP
more amounts to figure the amount to enter on              NOL back before carrying it forward.
                                                                                                                 Amended Return Checkbox.––If you are 
a line, schedule, or worksheet, you may choose             If you are filing an amended return due to an         amending  a  return  previously  filed,  check  the 
to use one of two methods. Once a method of                IRS adjustment, also check the IRS Adjustment         AMENDED Return box to indicate that this is an 
rounding is established, you must use the same             box at the top of page 1 of Form N-70NP. See          amended return.
method throughout the return. The first method             Change in Federal Taxable Income, below.
is to include the cents when adding and round                                                                    NOL Carryback  Checkbox.––If you are 
off only the total. The other method is to round           Change in Federal Taxable Income                      amending a return to take a deduction for a farm-
off  each  entry.  For  example:  You  received  two       In general, a change to your federal return,          ing NOL carryback, check the NOL Carryback 
1099-INT forms, one showing interest of $50.55             whether it is made by you or by the IRS, must be      box in addition to the AMENDED Return box.
and one showing interest of $185.73. For round-            reported to the State of Hawaii.                      IRS Adjustment  Checkbox.––If you are 
ing method 1, show your total interest as $236                                                                   amending a  return due to  an IRS  adjustment,  
($50.55 + $185.73 = $236.28 rounded to $236).              (1) Section 235-101(b),  HRS, requires  a report 
For rounding method 2, show your total inter-              (an amended return) to the Director of Taxa-          check the IRS Adjustment box in addition to the 
est as $237 ($50.55 rounded to $51 + $185.73               tion if the amount of IRC taxable Income is           AMENDED Return box.
rounded to $186 = $51 + $186 = $237).                      changed, corrected, adjusted, or recomputed           Name,  Mailing  Address,  and Federal 
                                                           as stated in (3).                                     Employer  Identification  Number.––The name 
At-Risk Provisions                                         (2) This report must be made:                         and mailing address on Form N-70NP should be 
                                                                                                                 completely shown.
For the rules limiting a loss to the amount at-            (a) Within 90 days after a change, correction, 
risk for certain trade or business and production          adjustment, or recomputation is finally de-           If the organization’s mailing  address is out-
of income activities, see section 465.                     termined.                                             side the United States or its possessions or ter-
                                                                                                                 ritories, enter the information on the line for “City 
Amended Return                                             (b) Within 90 days after an amended federal           or town, State and Postal/ZIP code” in the follow-
If the organization’s return is filed and then it          return is filed.                                      ing order: city, province or state, postal code, and 
becomes necessary to make changes to income,               (c) At  the  time  of  filing  the  next  income  tax the name of the country. Do not abbreviate the 
deductions, or credits, file an amended return on          return, if earlier than set forth in (a) or (b).      country name.
Form N-70NP, using the form for the year you are           (3) A report within the time set out in (2) is re-    If your mailing address has changed, you must 
amending. Check the AMENDED Return box at                  quired if:                                            notify the Department of the change by complet-
the top of page 1 of Form N-70NP to indicate that                                                                ing Form ITPS-COA, Change of Address Form, or 
this is an amended return. Complete the amend-             (a) The amount of taxable income as returned 
ed return using corrected amounts through                  to the United States is changed, correct-             log in to your Hawaii Tax Online account at hitax. 
line 24, then go to line 27. Attach a completed            ed, or adjusted by an officer of the United           hawaii.gov. Failure to do so may prevent your 
Schedule  AMD, Explanation  of Changes  on                 States or other competent authority.                  address from being updated, any refund due to 
                                                                                                                 you from being delivered (the U.S. Postal Service 
Amended Return, to the amended return. Also,               (b) A change in taxable income results from a         is not permitted  to forward  your State refund 
attach all schedules, forms, and attachments re-           renegotiation of a contract with the United           check), and  delay  important notices or corre-
quired to file a complete return, including, but not       States or a subcontract thereunder.                   spondence to you regarding your return.
limited to Schedule CR, even if such claim was             (c) A recomputation of  the income tax im-            Block A.––Enter the organization’s Federal 
made on the original return.                               posed by the United States under the IRC              Employer  Identification  Number  (FEIN)  in  this 
For returns amending  an original  return on               results from any cause.                               block.
which a payment was made or a refund was                   (d) An amended income tax return is made to           Block B.––Enter the applicable  unrelated 
claimed, see the instructions for lines 27 and 28.         the United States.                                    business  activity  code(s)  that  specifically  de-
If the return is being amended to take a farm-             (4) The report referred to above shall be in the      scribes the  organization’s  unrelated business 
ing  net operating  loss (NOL) carryback  deduc-           form  of  an  amended Hawaii income tax  re-          activity.  If  a  specific  activity  code  does  not  ac-
tion, also check the NOL Carryback box at the              turn.                                                 curately describe  the organization’s activities, 
top of page 1 of Form N-70NP.                                                                                    then choose a general code that best describes 
                                                           (5) The statutory period  for the assessment  of 
For NOLs arising  in tax years ending after                any  deficiency  or  the  determination  of  any      its activity. This is the same code that appears 
December 31, 2017, Act  27, SLH 2018, elimi-               refund attributable to the report shall not ex-       on the organization’s federal Form 990-T. A list of 
nates NOL carrybacks (except for farming NOLs              pire before the expiration of one year from the       these codes appears in the instructions for fed-
which are permitted a two-year carryback), and             date the Department is notified by the taxpay-        eral Form 990-T.
allows unused NOLs to be carried forward indefi-           er or the IRS, whichever is earlier, of such a        Block C.––Enter the organization’s Hawaii 
nitely. Also, the NOL deduction is limited to 80%          report in writing. Before the expiration of this      Tax I.D. Number in this block.
of taxable income for NOLs arising in tax years            one year period, the Department and the tax-          Block D.––Check the appropriate box to indi-
beginning after December 31, 2017.                         payer may agree in writing to the extension of        cate the organization’s legal structure—i.e., cor-
You may  elect to  carry the farming NOL                   this period. The period so agreed upon may            poration or charitable trust.
forward  instead  of  first  carrying  it  back  to  prior be further extended by subsequent agree-
years. If you make this election, then you can use         ments in writing made before the expiration of        Lines 1 - 3 and 5 - 7.––Enter the appropriate 
your farming NOL only in the carryforward period.          the period previously agreed upon.                    figures from the organization’s federal Form 990-
To make this election, attach a statement to your                                                                T which must be attached to this return.
original return filed by the due date (including ex-       Protective Claim                                      Note:    The amount on line  6 may not 
tensions) for the farming NOL year. This state-            A protective claim is a claim filed to protect a      equal the sum of lines 1 through 5.
ment must state that you are electing to waive             taxpayer’s right to a potential refund based on a     Line 4.––If the organization has taxable net 
the  carryback period under section  235-7(d),             contingent event for a taxable period for which       capital  gain income, attach a copy of Hawaii 
HRS, and IRC section 172(b)(1)(B)(iv).                     the statute of limitations is about to expire. A pro- Schedule  D  (Form  N-30/N-70NP)  if  a  corpora-
If  you  filed  your  original  return  on  time  but      tective claim is usually based on contingencies       tion, or Hawaii Schedule D (Form N-40), if a trust. 
did not file the statement with it, you can make           such as pending litigation or an ongoing federal      Enter the amount of capital gain net income from 
this  election  on  an  amended  return  filed  within     income tax audit or an audit in another state. For    federal Form 990-T on line 4. If this amount is not 
6 months of the original due date of the return,           more information see Tax Facts 2021-2.                the same as on Hawaii Schedule D (Form N-30/
but not including any extension. Attach a state-                                                                 N-70NP) or Hawaii Schedule D (Form N-40), in-
ment to your amended  return, and write “Filed             Specific Instructions                                 clude the federal amount in Part I, line 2 or Part 
pursuant to 26 C.F.R. 301.9100-2” at the top of            Period to be covered by 2023 Return.—File             II, line 2 and include the Hawaii amount in Part I, 
the statement. Also include the statement noted            your 2023 return for calendar year 2023 and fis-      line 4 or Part II, line 4, respectively.
above that you are waiving the carryback period.           cal years beginning in 2023. If the return is for a 
Once you elect to waive the carryback period, it           fiscal year, fill in the tax year space in the form   Line 8.––Enter on line 8 the difference of line 
cannot  be  changed  later.  If  you  do  not  file  this  heading.  To change an accounting  period,  use       6 and line 7 (Line 6 minus line 7).
statement on time, the carryback period cannot             federal  Form 1128,  Application  for Change  in 
                                                           Accounting Period.

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Tax Computations cluded royalties and other income derived from III, to line 16. Also, write “Form N-325” on the dot-
patents and copyrights the organization owns ted line next to line 16.
Line 9.—Corporations.––If you are a trust, in the income reported on line 1, these amounts Line 17.—Total refundable credits from
skip to line 10 to figure your tax. If you are filing should be included in the deductions shown on Schedule CR.––If you are claiming any refund-
for an organization other than a trust, the corpo- line 2 of Part I or Part II. These amounts should able tax credits, you must use Schedule CR,
rate tax rates apply. be identified by attaching a separate schedule Schedule of Tax Credits, to summarize the to-
If the corporation has no taxable net capital or listing. tal refundable credits claimed. Complete Part
gains, the tax is computed using the following Attach a schedule noting type and amount of I of Schedule CR, and enter the amount from
rates applied to the Hawaii unrelated business deductions to your Form N-70NP. Schedule CR, line 10, on line 17. Attach Schedule
taxable income (Part I, line 5): CR to your Form N-70NP. See Instructions for
Of the Part I, line 4.— Hawaii additions to in-
But not Enter on amount Reduced come.––Include on this line the amount of any Schedule CR for more information.
Over— Over— Line 9 Over— by— section 199 domestic activities production de- Credit From a Regulated Investment Company
$ 0 $ 25,000 4.4% $ 0 $ 0 duction and bonus depreciation included on the
25,000 100,000 5.4% 25,000 250 organization’s federal return. Also include the A shareholder of a regulated investment com-
100,000 — 6.4% 100,000 1,250 section 179 deduction which exceeds $25,000. pany is allowed a credit for the tax paid to the
Hawaii has not adopted these provisions. State by the company on the amount of capital
gains which by section 852(b)(3)(D) is required
If the corporation has taxable net capital Also include in this line the amount of capital to be included in the shareholder’s return. The
gains, the tax is the lesser of: gain net income from Schedule D (Form N-30/N- regulated investment company will notify you of
1. The tax computed using the above rates ap- 70NP or Form N-40) if the Hawaii amount is not the undistributed capital gains amount and the
plied to the Hawaii total unrelated business the same as the federal amount from line 4 on tax paid, if any. If this credit applies to you, in-
taxable income (Part I, line 5); or page 1. clude the amount on Schedule CR, line 9b, and
2. The sum of: Attach a schedule noting type and amount to attach an explanation.
a. 4% of the taxable net capital gains; and your Form N-70NP. Line 18. Adjusted Tax Liability.––Line 16
b. The tax computed on the Hawaii total un- Line 10.—Trusts.––Trusts exempt under minus line 17. If line 18 is less than zero, place a
related business taxable income less section 501(a) which otherwise would be subject minus sign, “-”, before this amount.
taxable net capital gain using the above to section 235-4, HRS, are taxed at trust rates as If line 18 is zero or less, the nonrefundable
rates. determined under section 235-51(d), HRS. This credits may not be used. Even if you are not
applies to employees’ trusts that qualify under able to use the nonrefundable credits, complete
Complete Part I of the TAX COMPUTATION section 401(a). forms for any tax credits you qualify for (includ-
SCHEDULE on page 2 of the return.
If the trust has a calendar tax year and has no ing Schedule CR) and attach the forms to your
Part I, line 2.—Other deductions.––Include taxable net capital gains, the tax is computed us- Form N-70NP. If the forms are not attached, no
on this line amounts deductible for Hawaii in- ing the Trusts’ Tax Rate Schedule on page 6. If the claim for the tax credit has been made, and you
come tax purposes, but not deductible on the or- trust has taxable net capital gains, see Part II of the will lose the carryover of your unused tax credits.
ganization’s federal return such as contributions TAX COMPUTATION SCHEDULE on page 2 of the Line 19.—Total nonrefundable credits from
to a group legal services plan. return. Schedule CR.––If line 18 is zero or less, no non-
If the organization claimed employment cred- Complete Part II of the TAX COMPUTATION refundable tax credit may be used. Enter zero on
its on its federal return for which wage expense SCHEDULE on page 2 of the return. line 19. If you are claiming any nonrefundable tax
was reduced pursuant to section 289C, include credits, you must use Schedule CR, Schedule of
on this line the amount of the required reduction Part II, line 2.—Other deductions.––See in-
of wages. structions for Part I, line 2. Tax Credits, to summarize the total nonrefundable
tax credits claimed. Complete Part II of Schedule
Include in this line the amount from line 4 on Part II, line 4.—Hawaii additions to income. CR, and enter the amount from Schedule CR,
page 1 if the federal amount of capital gain net in- ––See instructions for Part I, line 4. line 32, on line 19. Attach Schedule CR to your
come is not the same as the Hawaii amount from Line 11.—Recapture of Capital Goods Form N-70NP. See Instructions for Schedule CR
Schedule D (Form N-30/N-70NP or Form N-40). Excise Tax Credit.—If property for which a credit for more information.
For Hawaii tax purposes, taxable income has been taken ceases to be eligible property or
does not include amounts received by a quali- is disposed of, recapture of all or part of the credit Credit allowed for taxes paid to a state or for-
fied high technology business as royalties and received may be necessary. See the instructions eign country by a resident trust
other income derived from patents, copyrights, for Form N-312, Part II for more information. If a resident trust derived income from sourc-
and trade secrets owned by the qualified high Enter the amount of any credit recapture on line es without Hawaii and paid a net income tax to a
technology business which were developed 11. state or foreign country, a credit may be claimed
and arose out of a qualified high technology Line 12.—Recapture of Low-Income against the Hawaii income tax. A credit is allow-
business. “Qualified high technology business” Housing Tax Credit.––Enter on this line any re- able against the Hawaii income tax only if the tax
means a business conducting more than 50% of capture of the Low-Income Housing Tax Credit paid to a state or foreign country was based on
its activities in qualified research. “Qualified re- from Form N-586, Part III. net income of the same taxable year and only if
the income taxed by the state or foreign coun-
search” means (1) the same as in section 41(d); Line 13.––Recapture of Tax Credit for try was derived from sources without Hawaii.
(2) the development and design of computer Flood Victims.––Enter on this line any recap- Intangible personal property of a resident trust
software for ultimate commercial sale, lease, li- ture of the Tax Credit for Flood Victims from Form has a situs within Hawaii, therefore, income from
cense or to be otherwise marketed, for economic N-338. such property is derived from within and not from
consideration. With respect to the software’s de-
velopment and design, the business shall have Line 14.––Recapture of Important without Hawaii and no credit may be allowed for
substantial control and retain substantial rights Agricultural Land Qualified Agricultural Cost taxes paid to a state or foreign country based
to the resulting intellectual property; (3) biotech- Tax Credit.––Enter on this line any recapture on such income. (However, in the rare case of a
nology; (4) performing arts products; (5) sensor of the Important Agricultural Land Qualified separate business situs there may be an excep-
and optic technologies; (6) ocean sciences; (7) Agricultural Cost Tax Credit from Form N-344. tion to this rule.) If any taxes paid are at any time
astronomy; or (8) nonfossil fuel energy-related Line 15.––Recapture of Capital refunded, the Hawaii State Tax Collector must
technology. All income earned and proceeds de- Infrastructure Tax Credit.––Enter on this line be notified promptly of such refund. The Hawaii
rived from stock options or stock, including stock any recapture of the Capital Infrastructure Tax Income Tax Law allows no credit to a nonresident
issued through the exercise of stock options or Credit from Form N-348, Part III. trust for the taxes paid to a state or foreign coun-
try. Limitations of credit—see HAR §18-235-55.
warrants, from a qualified high technology busi- Line 16.––Total Tax.––Enter on this line the
ness or from a holding company of a qualified total of lines 9 or 10, whichever is applicable, and To claim this credit. Complete Schedule CR
high technology business by an employee, offi- lines 11 through 15. and attach it to your return. A copy of the return
cer, or director of the qualified high technology filed with the state or foreign country and a re-
business, or investor who qualified for the high If you are required to recapture the historic ceipt or other evidence to substantiate payment
technology business investment tax credit is ex- preservation income tax credit, add the recapture of the tax also must be attached to your return.
cluded from income taxes. If the organization is of the tax credit amount from Form N-325, Part
a qualified high technology business and has in-

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Line 20.—Line 18 minus line 19. If line 18 is          Amended Return                                         cer, trustee, or by any other corporate officer au-
zero or less, enter on this line the amount from                                                              thorized to sign. A receiver, trustee, or assignee 
line 18.                                               Complete the organization’s amended return             must sign and date any return he or she is re-
                                                       through line 24, using corrected amounts, then         quired to file on behalf of the organization.
Line 21(b).—Estimated Tax Payment.          —          go to line 27. Attach a completed Schedule AMD, 
Enter the total estimated tax payments made for        Explanation of Changes on Amended Return, to           The    corporation    may      authorize     the
the tax year with Form N-201V, Business Income         the amended return. Also, attach all schedules,        Department to discuss its tax return with its paid 
Tax Payment Voucher.  Trusts must also  use            forms,  and  attachments  required  to  file  a  com-  preparer  by checking the “Yes” box above the 
Form N-201V, but should use the Estimated Tax          plete return, including, but not limited to Schedule   paid preparer’s signature. Checking “Yes” will al-
Computation For Trusts Worksheet on page 6 of          CR, even if such claim was made on the original        low the Department to contact the paid preparer 
these instructions.                                    return.                                                to answer any questions that may arise during 
                                                                                                              the processing  of the corporation’s return. This 
Line  21(c).—Tax Paid  With  Automatic                 Line 27.—Amount paid (overpaid) on origi-              designation does not allow the paid preparer to 
Extension  of Time.—Enter the tax paid with            nal return.—Enter on line  27 the amount paid          call the Department for information about the pro-
Form N-201V, Business Income  Tax Payment              on the organization’s original return (from line 23    cessing of the return or for other issues relating 
Voucher.                                               of the original return) or the amount overpaid         to the return. This designation does not replace 
Line 22.—Estimated Tax Penalty.—An or-                 (from line 24 of the original return). If you have     Form N-848, Power of Attorney. 
ganization or a trust that fails to make estimated     an overpayment, place a minus sign, “-”, before 
tax payments when due may be subject to an un-         the overpayment amount.                                Trust.—The return must be signed and dated 
                                                                                                              by the individual fiduciary, or by the authorized 
derpayment penalty for the period of underpay-         Line  28.—BALANCE DUE (REFUND) with                    officer  of  the  trust  receiving  or  having  custody, 
ment. Form N-220, Underpayment of Estimated            amended return.—If no amount was entered on            or control and management of the income of the 
Tax by Corporations, is used to figure the amount      line 27, enter on line 28 the amount, if any, from     trust. If two or more individuals act jointly as fidu-
of the penalty. Attach Form N-220 to the organi-       line 23 or line 24 of the amended return. If there     ciaries any one of them may sign.
zation’s return.                                       is an amount on line 27, and that amount is:
                                                                                                              The trust may authorize the Department 
Line  23.—Tax Due.—If  the amount  on line             a.  A payment and there is an amount on line 23        to discuss  its tax return with its paid  preparer 
21(d) is smaller than the total of line 20 and 22,     of the  amended return, subtract the amount            by checking the “Yes” box above the paid pre-
subtract line 21(d) from the total of lines 20 and     on  line  27 from the amount  on  line  23  and        parer’s signature. Checking “Yes” will allow the 
22 and enter the difference on line 23. This is the    enter the difference  on line  28. If the differ-      Department to contact the paid preparer to an-
balance due.                                           ence is a negative amount, show the negative           swer any questions that  may arise  during the 
Line 24.—Overpayment.—If the amount on                 amount on line 28 with a minus sign, “-”.              processing of  the  trust’s  return.  This  designa-
line 21(d) is larger than the total of lines 20 and    b.  A payment and there is an amount on line           tion does not allow the paid preparer to call the 
22, subtract this total from line 21(d) and enter      24, add these amounts and enter the total on           Department for information about the processing 
the difference on line 24. This is the amount over-    line 28.  Place a minus sign, “-”,  before this        of  the  return or  for  other issues relating to  the 
paid.                                                  amount.                                                return. This designation does not replace Form 
Line 26.—Amount Paid With This Return.      —          c.  An overpayment and there is an amount on           N-848, Power of Attorney. 
Enter the amount of payment. Make your check           line 23, subtract the amount on line 27 from           Paid  Preparer.—If  someone prepares the 
or money order payable to the “HAWAII STATE            the amount on line 23, and enter the result on         organization’s return and does not charge the or-
TAX COLLECTOR” in U.S. dollars drawn on any            line 28. This is the amount the organization           ganization, that person should not sign the orga-
U.S. bank. Write your FEIN and the words “2023         owes on its amended return.                            nization’s return. Certain others who prepare the 
Form N-70NP” on it.  Do not send cash.                                                                        organization’s return should not sign. For exam-
                                                       d.  An overpayment and there is an amount on 
Attach your check or money order where indi-           line 24,  consider the  amount on line 24 a            ple, the organization’s regular, full-time employee 
cated on the front of Form N-70NP.                     negative amount and subtract the amount on             does not have to sign.
If the organization cannot pay the full amount         line 27 from the amount on line 24, and enter          Generally, anyone who is paid to prepare the 
that is owed, you can ask to enter a payment           the difference on line 28. If the difference is a      organization’s tax return must sign the organiza-
agreement after you receive a billing notice for       negative amount, show the negative amount              tion’s return and fill in the other blanks in the Paid 
the balance due. Please be aware that penalty          on line 28 with a minus sign, “-”. If there is an      Preparer’s Information area of the organization’s 
and interest continue to accrue on the unpaid tax      overpayment on the amended return, do NOT              return.
amount even though you have not yet received a         enter this amount on line 25(b).                       The person required to sign the organization’s 
billing notice. Payments will be accepted and ap-      If the organization has an amount due on its           return MUST:
plied to the organization’s tax liability; however, to amended  return, make check or money  order            •  Complete the required preparer information.
ensure that the organization’s payments are ap-        payable to “HAWAII STATE TAX COLLECTOR” 
plied correctly, your check or money order must        and attach the check or money order to the front       •  Sign the return in the space provided for the 
have: (1) the organization’s name as shown on          of Form N-70NP.                                        preparer’s signature.
the return clearly printed on the check, (2) the or-
ganization’s FEIN, and (3) the tax year and form       Signature                                              •  Give the organization a copy of its return in 
number being filed (ex. 2023 N-70NP).                  Corporation.—The return must be signed                 addition to the copy to be filed with the De-
                                                       and dated by the president, vice president, trea-      partment.
                                                       surer,  assistant  treasurer,  chief  accounting  offi-

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      ESTIMATED TAX COMPUTATION FOR TRUSTS WORKSHEET
1.  Enter the total expected 2024 unrelated business taxable income of the trust (Form N-70NP) ...                                           1
2.  Net capital gain taxable to the trust. If this line is zero, go to line 9 ..............................................                 2
3.  Difference — line 1 minus line 2 ...................................................................................................     3
4.  Enter the greater of line 3 or $20,000 ...........................................................................................       4
5.  Tax on amount on line 4.  If line 4 is $20,000, enter $1,128.00.  See Tax Rate Schedule below .                                          5
6.  Difference — line 1 minus line 4 ...................................................................................................     6
7.  Multiply the amount on line 6 by 7.25% ........................................................................................          7
8.  Tax — add lines 5 and 7 ...............................................................................................................  8
9.  Tax on the amount on line 1 ..........................................................................................................   9
10.  Enter the smaller of line 8 or line 9 ...............................................................................................  10
11.  Estimated available tax credits .....................................................................................................  11
12.  Estimated tax due — line 10 minus line 11. ..................................................................................  12

                                     Trusts’ Tax Rate Schedule
                                     For Periods After December 31, 2001 
                                     (Section 235-51(d), Hawaii Revised Statutes)
If the amount on line 8, page 1  is: The tax shall be:
Not over $2,000.......................................................................................................................... 1.40% of the amount
Over $2,000 but not over $4,000 ............................................................................................... $28.00 plus 3.2% of excess over $2,000
Over $4,000 but not over $8,000 ............................................................................................... $92.00 plus 5.5% of excess over $4,000
Over $8,000 but not over $12,000 ............................................................................................. $312.00 plus 6.4% of excess over $8,000
Over $12,000 but not over $16,000 ........................................................................................... $568.00 plus 6.8% of excess over $12,000
Over $16,000 but not over $20,000 ........................................................................................... $840.00 plus 7.2% of excess over $16,000
Over $20,000 but not over $30,000 ........................................................................................... $1,128.00 plus 7.6% of excess over $20,000
Over $30,000 but not over $40,000 ........................................................................................... $1888.00 plus 7.9% of excess over $30,000
Over $40,000 ............................................................................................................................. $2,678.00 plus 8.25% of excess over $40,000

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