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                                       STATE OF HAWAII — DEPARTMENT OF TAXATION 
                                                               
   FORM                                                                                                                                     TAX 
                               FUEL TAX CREDIT FOR COMMERCIAL FISHERS                                                                       YEAR 
N-163
                                                               
 (REV. 2020)
             Or fiscal year beginning                  , 20        and ending                       , 20                                    20__

                      ATTACH TO FORM N-11, N-15, N-20, N-30, N-35, N-40, OR N-70NP, 
                                           WHICHEVER IS APPLICABLE 
               NOTE: References to “married” and “spouse” are also references to “in a civil union” and “civil union partner,” respectively.
Name(s) as shown on tax return                                                   SSN or FEIN

  PART I — COMPUTATION OF TAX CREDIT FOR COMMERCIAL FISHERS

Note: If you are only claiming your distributive share(s) of a credit distributed from a partnership, an S Corporation, an 
   estate, or a trust, skip lines 1 through 3 and begin on line 4.

1.  Enter the number of gallons of diesel oil purchased and used by the principal operator ............................          

2.  Multiply the number of gallons from line 1 by $0.01 and enter the amount here .........................................     $  

3.  Add the amount of credit from Part II, line 3, Columns A through D, and enter total here. ..........................        $  

4.  Flow through of fuel tax credit for commercial fishers received from other entities, if any:  
   Check the applicable box below. Enter the name and Federal Employer I.D. No. of Entity: 
    __________________________________________________________________________________  
      aS corporation shareholder enter amount from Schedule K-1 (Form N-35), 
      bPartner enter amount from Schedule K-1 (Form N-20), 
      cBeneficiary enter amount from Schedule K-1 (Form N-40), 
      dPatron enter amount from federal Form 1099-PATR ......................................................................$  

5.  Add the credit from lines 2, 3, and 4. Enter the total here and on the appropriate line of Schedule CR 
   (for Form N-11, N-15, N-30, N-40 and N-70NP filers) (rounded to the nearest dollar)... .............................         $ 

  PART II — WORKSHEET FOR GASOLINE PURCHASED AND USED BY PRINCIPAL OPERATOR
                                                 Column A             Column B                      Column C                                Column D
                                                City & County of      County of                     County of                       County of
                                                 Honolulu                Maui                       Hawaii                                  Kauai
 1.  Enter the number of gallons of 
   gasoline purchased and used by the 
   principal operator.                                                                                                             

 2.  Rate (see Instructions)                 x $0.325              x                              x                               x $0.330 

 3.  Multiply the number of gallons from 
   line 1 by the rate listed on line 2       $                     $                              $                               $                  

N163_I 2020A 01 VID01                            ID NO 01                                                                                   FORM N-163



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FORM N-163 
(REV. 2020)                                                                                                                       PAGE 2

CHANGES TO NOTE                                                         (2)  Schedule CR (For tax returns for which Schedule CR is 
                                                                        required)
Maui County Resolution No. 20-82 increases the County of 
Maui fuel tax from $0.23 per gallon to $0.24 per gallon effective       (3)  Schedule K-1 (Required only if you are claiming a distributive 
July 1, 2020                                                            share of a credit from a partnership, S corporation, estate, or 
                                                                        trust)
GENERAL INSTRUCTIONS
                                                                        Flow-Through Entities
Note: Hawaii recognizes same-sex marriages. Therefore, all 
same-sex couples that are legally married in Hawaii or any other        If you are a partnership, S corporation, estate, or trust that is 
jurisdiction where such marriages are valid are married for all tax     allocating this credit to your partners, shareholders, or beneficiaries, 
purposes.                                                               complete Form N-163 and attach it to your Hawaii income tax 
                                                                        return. Then enter the total fuel tax credit for commercial fishers 
Note: Civil unions are recognized in Hawaii. Hawaii’s laws that         on the applicable line of your Hawaii income tax return (see the 
apply to a husband and wife, spouses, or person in a legal marital      instructions for line 5). Prepare and provide Schedule K-1 reporting 
relationship shall be deemed to apply to partners in a civil union      the distributive share of the fuel tax credit for commercial fishers for 
with the same force and effect as if they were “husband and wife,”      each partner, shareholder, or beneficiary.
“spouses,” or other terms that describe persons in a legal marital 
relationship.                                                           Deadline for Claiming the Credit
A principal operator of a commercial fishing vessel who files an        The deadline to claim the credit, including amended claims, is 
income tax return for the taxable year may be eligible for the fuel tax 12 months after the close of your taxable year. You cannot claim or 
credit for commercial fishers.                                          amend the credit after the deadline.
The amount of the credit is limited to the fuel taxes imposed           SPECIFIC INSTRUCTIONS
under section 243-4(a), Hawaii Revised Statutes (HRS), and paid 
by the principal operator for use in the operation of the fishing       PART I  COMPUTATION OF TAX CREDIT FOR COMMERCIAL 
vessel during the indicated taxable year.                               FISHERS
A taxpayer and spouse filing separate returns, where a joint            Line 4. Flow through of credit received from other entities, if 
return could have been filed, shall claim only the credit to which the  any. In the case of a taxpayer who is a member of a flow-through 
taxpayer and spouse would have been entitled had a joint return         entity (i.e., S corporation, partnership, estate, or trust), enter the 
been filed.                                                             amount of the credit received from the entity on line 4. Attach a 
                                                                        copy of the applicable Schedule K-1 to Form N-163 when the credit 
If the properly claimed and allowed credit exceeds the amount           is claimed.
of the income tax due and payable from the principal operator, the 
excess will be refunded to the principal operator.                      Line 5. Form N-11, N-15, N-30, and N-70NP filers, enter the 
                                                                        amount on line 5 on the appropriate line of Schedule CR (rounded 
Purpose of Form                                                         to the nearest dollar).
Use Form N-163 to figure and claim the fuel tax credit for              Form N-40 filers, enter the amount on line 5 that is allocated 
commercial fishers under sections 235-110.6, HRS, and 18-235-           to the estate or trust on the appropriate line of Schedule CR. Enter 
110.6, Hawaii Administrative Rules.                                     the amount on line 5 that is allocated to the beneficiary to Schedule 
Who May Claim This Credit                                               K-1, Form N-40, for each beneficiary.
This credit may be claimed by a principal operator of a                 Form N-35 filers, enter the amount on line 5 on the appropriate 
commercial  fishing  vessel who  purchases and  actually uses  the      line of Schedule K.
fuel to operate a fishing vessel for commercial purposes.               Form N-20 filers, enter the amount on line 5 on the appropriate 
When the Credit May Not Be Claimed                                      line of Schedule K.
This credit may not be claimed if any of the following apply:           PART II  WORKSHEET FOR GASOLINE PURCHASED AND 
                                                                        USED BY PRINCIPAL OPERATOR
(1)  You use the fuel in the operation of charter fishing boats and 
the like where the income is derived from fees and sources              Line 2, Column B. The County of Maui fuel tax per gallon of 
other than from commercial fishing.                                     liquid fuel is as follows:
(2)  You use the fuel in the operation of a fishing vessel where        $0.390 per gallon before July 1, 2020 
the activity is not engaged in for profit as provided in Internal               $0.400 per gallon from July 1, 2020.
Revenue Code section 183.                                               Line 2, Column C. The County of Hawaii fuel tax per gallon of 
(3)  You use alternative fuels. However, you may obtain a refund        liquid fuel is as follows:
of the fuel taxes paid by filing Form M-36, Combined Claim for          $0.350 per gallon from July 1, 2018 through June 30, 2019 
Refund of Fuel Taxes.                                                           $0.390 per gallon from July 1, 2019.
Credit Requirements                                                     If your credit will be calculated using two different tax rates, 
To claim this credit, you must complete and attach to your              attach a separate schedule showing the calculation. Leave lines 1 
Hawaii income tax return:                                               and 2 of Column B and C blank, and enter the total amount of the 
                                                                        credit on line 3, Column B and C.
(1)  Form N-163






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