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INSTRUCTIONS STATE OF HAWAII DEPARTMENT OF TAXATION
FORM N-323
(REV. 2023) INSTRUCTIONS FOR FORM N-323
CARRYOVER OF TAX CREDITS
GENERAL INSTRUCTIONS only if you have a carryover of the credit for costs incurred after November 1
2001, but before July 1, 2003, and a proper claim of the credit was made in
Use Form N-323, Carryover of Tax Credits, to carry forward any amount of the applicable prior year.
unused nonrefundable credits. The time to claim the original amount of these Line 7 — The law requires that ALL other credits offset a taxpayer’s tax
credits has expired and no NEW claims for the credits will be allowed. liability BEFORE allowing a hotel construction and remodeling tax credit.
Note: This form must be attached to the Schedule CR and both forms Complete the Hotel Construction and Remodeling Tax Credit Worksheet
MUST be filed every year whether or not an amount of carryover credit is on page 3 and enter the result on line 7.
applied to the current year’s tax liability. Line 9 — This line is for the carryover of any unused hotel construction and
remodeling tax credit.
SPECIFIC INSTRUCTIONS
Line 10. Total Credit Applied — Compare the amounts on lines 8 and 9.
Enter the smaller of line 8 or 9 here and in Column (b) on Schedule CR, line
Part I: Adjusted Tax Liability 18. This is your maximum credit allowed for this taxable year.
Line 1 — Enter your adjusted tax liability. Line 11. Unused Credit to Carryover — This represents your carryover of
• Form F-1 filers, enter the amount from Form F-1, line 71. unused hotel construction and remodeling tax credit which exceed your tax
• Form N-11 filers, enter the amount from Form N-11, line 34. liability and may be used as a credit against your tax liability in subsequent
years until exhausted. If the amount is more than zero, also enter it on
• Form N-15 filers, enter the amount from Form N-15, line 51. Schedule CR, line 18, in Column (c).
• Form N-30 filers, enter the amount from Form N-30, line 13.
• Form N-40 filers, enter the amount from Form N-40, Schedule G, line 3. Part IV: Carryover of the Cesspool Upgrade,
• Form N-70NP filers, enter the amount from Form N-70NP, line 18. Conversion or Connection Income Tax Credit
Part II: Carryover of the Credit for Energy Conservation The cesspool upgrade, conversion or connection income tax credit expired
on December 31, 2020. You may claim the credit only if you have a carryover
The energy conservation and residential construction and remodeling tax of the credit from a prior year and a proper claim of the credit was made in
credits expired on June 30, 2003. You may claim the tax credit(s) only if you the applicable prior year.
have a carryover of the tax credit(s) from a prior year and a proper claim of
the credit(s) was made in the applicable prior year. Line 12 — The law requires that ALL other credits offset a taxpayer’s tax
liability BEFORE allowing a cesspool upgrade, conversion or connection
See Form N-342, Renewable Energy Technologies Income Tax Credit for income tax credit. Complete the Cesspool Upgrade, Conversion or
Systems Placed in Service on or After July 1, 2009, for the credit available Connection Income Tax Credit Worksheet on page 3 and enter the result
for current system installations. For systems installed and placed in service on line 12.
before July 1, 2009, you may claim the credit only if you have a carryover of
the tax credit from a prior year. Line 14 — This line is for the carryover of any unused cesspool upgrade,
conversion or connection income tax credit.
Line 2 — The law requires that ALL other credits offset a taxpayer’s tax
liability BEFORE allowing an energy conservation tax credit. Complete the Line 15. Total Credit Applied — Compare the amounts on lines 13 and
Energy Conservation Tax Credit Worksheet on page 3 and enter the result 14. Enter the smaller of line 13 or 14 here and in Column (b) on Schedule
on line 2. CR, line 16. This is your maximum credit allowed for this taxable year.
Line 4 — This line is for the carryover of any unused energy conservation Line 16. Unused Credit to Carryover — This represents your carryover of
tax credit. unused cesspool upgrade, conversion or connection income tax credit which
exceed your tax liability and may be used as a credit against your tax liability
Line 5. Total Credit Applied — Compare the amounts on lines 3 and 4. in subsequent years until exhausted. If this amount is more than zero, also
Enter the smaller of line 3 or 4 here and in Column (b) on Schedule CR, line enter it on Schedule CR, line 16, in Column (c).
14. This is your maximum credit allowed for this taxable year.
Line 6. Unused Credit to Carryover — This represents your carryover Part V: Carryover of the Residential Construction and
of unused energy conservation tax credit which exceed your tax liability and Remodeling Tax Credit
may be used as a credit against your tax liability in subsequent years until
exhausted. If this amount is more than zero, also enter it on Schedule CR, Line 17 — The law requires that ALL other credits offset a taxpayer’s tax
line 14, in Column (c). liability BEFORE allowing a residential construction and remodeling tax
credit. Complete the Residential Construction and Remodeling Tax
Part III: Carryover of the Hotel Construction and Credit Worksheet on page 3 and enter the result on line 17.
Remodeling Tax Credit Line 19 — This line is for the carryover of any unused residential
construction and remodeling tax credit.
Each taxpayer subject to Hawaii’s net income tax and transient
accommodations tax was able to claim a hotel construction and remodeling Line 20. Total Credit Applied — Compare the amounts on lines 18 and
tax credit for a qualified hotel facility located in Hawaii. A nonrefundable tax 19. Enter the smaller of line 18 or 19 here and in Column (b) on Schedule
credit of 10 percent was available for qualified construction or renovation costs CR, line 19. This is your maximum credit allowed for this taxable year.
incurred after November 1, 2001, but before July 1, 2003. The credit changed Line 21. Unused Credit to Carryover — This represents your carryover
to a refundable 4 percent credit for qualified construction or renovation costs of unused residential construction and remodeling tax credit which exceed
incurred after June 30, 2003 through December 31, 2005. See Department your tax liability and may be used as a credit against your tax liability in
of Taxation Announcement No. 2001-20. subsequent years until exhausted. If this amount is more than zero, also enter
The hotel construction and remodeling tax credit is not available for taxable it on Schedule CR, line 19, in Column (c).
years beginning after December 31, 2005. However, you may claim the credit

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Instructions for Form N-323
(REV. 2023) Page 2
Part VI: Carryover of the Renewable Energy Line 34 — This line is for the carryover of any unused high technology
Technologies Income Tax Credit (For Systems Installed business investment tax credit.
and Placed In Service Before July 1, 2009) Line 35. Total Credit Applied — Compare the amounts on lines 33 and
34. Enter the smaller of line 33 or 34 here and in Column (b) on Schedule
Line 22 — The law requires that ALL other credits offset a taxpayer’s tax CR, line 15. This is your maximum credit allowed for this taxable year.
liability BEFORE allowing a renewable energy technologies income tax credit
(for systems installed and placed in service before July 1, 2009). Complete Line 36. Unused Credit to Carryover — This represents your carryover
of unused high technology business investment tax credit which exceed
the Renewable Energy Technologies Income Tax Credit (For Systems your tax liability and may be used as a credit against your tax liability in
Installed and Placed In Service Before July 1, 2009) Worksheet on page
4 and enter the result on line 22. subsequent years until exhausted. If this amount is more than zero, also enter
it on Schedule CR, line 15, in Column (c).
Line 24 — This line is for the carryover of any unused renewable energy
technologies income tax credit (for systems installed and placed in service Part IX: Carryover of the Organic Foods Production Tax
before July 1, 2009). Credit
Line 25. Tax Credit Applied — Compare the amounts on lines 23 and 24.
Enter the smaller of line 23 or 24 here and in Column (b) on Schedule CR, The organic foods production tax credit expired on December 31, 2021.
line 20. This is your maximum credit allowed for this taxable year. You may claim the credit only if you have a carryover of the credit from a prior
year and a proper claim of the credit was made in the applicable prior year.
Line 26. Unused Credit to Carryover — This represents your carryover
of unused renewable energy technologies income tax credit (for systems Line 37 — The law requires that ALL other credits offset a taxpayer’s tax
installed and placed in service before July 1, 2009) which exceed your tax liability BEFORE allowing an organic foods production tax credit. Complete
liability and may be used as a credit against your tax liability in subsequent the Organic Foods Production Tax Credit Worksheet on page 5 and enter
years until exhausted. If this amount is more than zero, also enter it on the result on line 37.
Schedule CR, line 20, in Column (c). Line 39 — This line is for the carryover of any unused organic foods
production tax credit.
Part VII: Carryover of the Technology Infrastructure Line 40. Total Credit Applied — Compare the amounts on lines 38 and
Renovation Tax Credit 39. Enter the smaller of line 38 or 39 here and in Column (b) on Schedule
The technology infrastructure renovation tax credit expired on December CR, line 21. This is your maximum credit allowed for this taxable year.
31, 2010. You may claim the credit only if you have a carryover of the credit Line 41. Unused Credit to Carryover — This represents your carryover
from a prior year and a proper claim of the credit was made in the applicable of unused organic foods production tax credit which exceed your tax liability
prior year. and may be used as a credit against your tax liability in subsequent years until
Line 27 — The law requires that ALL other credits offset a taxpayer’s exhausted. If this amount is more than zero, also enter it on Schedule CR,
tax liability BEFORE allowing a technology infrastructure renovation tax line 21, in Column (c).
credit. Complete the Technology Infrastructure Renovation Tax Credit
Worksheet on page 4 and enter the result on line 27. Part X: Carryover of the Renewable Fuels Production
Tax Credit (For Tax Years Before January 1, 2022)
Line 29 — This line is for the carryover of any unused technology
infrastructure renovation tax credit. The renewable fuels production tax credit (for tax years before January 1,
Line 30. Total Credit Applied — Compare the amounts on lines 28 and 2022) expired on December 31, 2021. You may claim the credit only if you
29. Enter the smaller of line 28 or 29 here and in Column (b) on Schedule have a carryover of the credit from a prior year and a proper claim of the credit
CR, line 17. This is your maximum credit allowed for this taxable year. was made in the applicable prior year.
Line 31. Unused Credit to Carryover — This represents your carryover of Line 42 — The law requires that ALL other credits offset a taxpayer’s tax
unused technology infrastructure renovation tax credit which exceed your tax liability BEFORE allowing a renewable fuels production tax credit (for tax
liability and may be used as a credit against your tax liability in subsequent years before January 1, 2022). Complete the Renewable Fuels Production
years until exhausted. If this amount is more than zero, also enter it on Tax Credit (For Tax Years Before January 1, 2022) Worksheet on page 5
Schedule CR, line 17, in Column (c). and enter the result on line 42.
Line 44 — This line is for the carryover of any unused renewable fuels
Part VIII: Carryover of the High Technology Business production tax credit (for tax years before January 1, 2022).
Investment Tax Credit Line 45. Total Credit Applied — Compare the amounts on lines 43 and
The high technology business investment tax credit expired on December 44. Enter the smaller of line 43 or 44 here and in Column (b) on Schedule
31, 2010. You may claim the credit only if you have a carryover of the credit CR, line 22. This is your maximum credit allowed for this taxable year.
from a prior year and a proper claim of the credit was made in the applicable Line 46. Unused Credit to Carryover — This represents your carryover
prior year. of unused renewable fuels production tax credit (for tax years before January
Line 32 — The law requires that ALL other credits offset a taxpayer’s 1, 2022) which exceed your tax liability and may be used as a credit against
tax liability BEFORE allowing a high technology business investment tax your tax liability in subsequent years until exhausted. If this amount is more
than zero, also enter it on Schedule CR, line 22, in
credit. Complete the High Technology Business Investment Tax Credit Column (c).
Worksheet on page 4 and enter the result on line 32.

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Instructions for Form N-323
(REV. 2023) Page 3

Worksheets

PART II — ENERGY CONSERVATION PART IV — CESSPOOL UPGRADE, CONVERSION OR
TAX CREDIT WORKSHEET CONNECTION INCOME TAX CREDIT WORKSHEET
Tax Credit Amount Tax Credit Amount
a. Income Taxes Paid to a. Income Taxes Paid to Another
Another State or Foreign State or Foreign Country .................
Country ............................................
b. Enterprise Zone Tax Credit ..............
b. Enterprise Zone Tax Credit ..............
c. Pass-Through Entity Tax Credit .......
c. Pass-Through Entity Tax Credit .......
d. Carryover of the Energy
d. Add lines a through c. Enter Conservation Tax Credit ..................
the amount here and on line 2.........
e. Credit for Employment of
Vocational Rehabilitation
Referrals ..........................................
PART III — HOTEL CONSTRUCTION AND REMODELING f. Credit for School Repair and
TAX CREDIT WORKSHEET Maintenance ....................................
Tax Credit Amount g. Carryover of the Renewable Energy
Technologies Income Tax Credit (For
a. Income Taxes Paid to Another Systems Installed and Placed In
State or Foreign Country ................. Service Before July 1, 2009) ...........
b. Enterprise Zone Tax Credit .............. h. Renewable Energy Technologies
Income Tax Credit (Nonrefundable) ..
c. Pass-Through Entity Tax Credit .......
i. Add lines a through h. Enter the
d. Carryover of the Energy amount here and on line 12............
Conservation Tax Credit ..................
e. Credit for Employment of
Vocational Rehabilitation
Referrals .......................................... PART V — RESIDENTIAL CONSTRUCTION AND
REMODELING TAX CREDIT WORKSHEET
f. Credit for School Repair and
Maintenance .................................... Tax Credit Amount
g. Carryover of the Renewable Energy a. Income Taxes Paid to Another
Technologies Income Tax Credit (For State or Foreign Country .................
Systems Installed and Placed in
Service Before July 1, 2009) ........... b. Enterprise Zone Tax Credit ..............
h. Renewable Energy Technologies c. Pass-Through Entity Tax Credit .......
Income Tax Credit (Nonrefundable) .. d. Carryover of the Energy
i. Carryover of the Cesspool Upgrade, Conservation Tax Credit ..................
Conversion, or Connection e. Credit for Employment of
Income Tax Credit ............................ Vocational Rehabilitation
j. Carryover of the Earned Income Referrals ..........................................
Tax Credit (Nonrefundable) ............. f. Credit for School Repair and
k. Healthcare Preceptor Tax Credit ..... Maintenance ....................................
l. Historic Preservation Income Tax Credit g. Carryover of the Renewable Energy
Technologies Income Tax Credit (For
m. Low-Income Housing Tax Credit ..... Systems Installed and Placed in
Service Before July 1, 2009) ...........
n. Carryover of the High Technology
Business Investment Tax Credit ...... h. Renewable Energy Technologies
Income Tax Credit (Nonrefundable) ..
o. Carryover of the Technology
Infrastructure Renovation Tax Credit i. Carryover of the Cesspool Upgrade,
Conversion, or Connection
p. Carryover of the Residential Income Tax Credit ............................
Construction and Remodeling
Tax Credit ........................................ j. Carryover of the Earned Income
Tax Credit (Nonrefundable) .............
q. Add lines a through p. Enter
the amount here and on line 7......... k. Healthcare Preceptor Tax Credit .....
l. Historic Preservation Income Tax Credit
m. Low-Income Housing Tax Credit .....
n. Carryover of the High Technology
Business Investment Tax Credit ......
o. Carryover of the Technology
Infrastructure Renovation Tax Credit
p. Add lines a through o. Enter
the amount here and on line 17.......

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Instructions for Form N-323
(REV. 2023) Page 4

Worksheets (continued)

PART VI — RENEWABLE ENERGY TECHNOLOGIES INCOME PART VIII — HIGH TECHNOLOGY BUSINESS
TAX CREDIT (FOR SYSTEMS INSTALLED AND PLACED INVESTMENT TAX CREDIT WORKSHEET
IN SERVICE BEFORE JULY 1, 2009) Tax Credit Amount
TAX CREDIT WORKSHEET
a. Income Taxes Paid to Another
Tax Credit Amount State or Foreign Country .................
a. Income Taxes Paid to Another b. Enterprise Zone Tax Credit ..............
State or Foreign Country .................
c. Pass-Through Entity Tax Credit .......
b. Enterprise Zone Tax Credit ..............
d. Carryover of the Energy
c. Pass-Through Entity Tax Credit ....... Conservation Tax Credit ..................
d. Carryover of the Energy e. Credit for Employment of
Conservation Tax Credit .................. Vocational Rehabilitation
e. Credit for Employment of Referrals ..........................................
Vocational Rehabilitation f. Credit for School Repair and
Referrals .......................................... Maintenance ....................................
f. Credit for School Repair and g. Carryover of the Renewable Energy
Maintenance .................................... Technologies Income Tax Credit (For
g. Add lines a through f. Enter Systems Installed and Placed in
the amount here and on line 22....... Service Before July 1, 2009) ...........
h. Renewable Energy Technologies
Income Tax Credit (Nonrefundable) ..
PART VII — TECHNOLOGY INFRASTRUCTURE i. Carryover of the Cesspool Upgrade,
Conversion, or Connection
RENOVATION TAX CREDIT WORKSHEET Income Tax Credit ............................
Tax Credit Amount j. Carryover of the Earned Income
a. Income Taxes Paid to Another Tax Credit (Nonrefundable) .............
State or Foreign Country ................. k. Healthcare Preceptor Tax Credit .....
b. Enterprise Zone Tax Credit .............. l. Historic Preservation Income Tax Credit
c. Pass-Through Entity Tax Credit ....... m. Low-Income Housing Tax Credit .....
d. Carryover of the Energy n. Add lines a through m. Enter
Conservation Tax Credit .................. the amount here and on line 32.......
e. Credit for Employment of
Vocational Rehabilitation
Referrals ..........................................
f. Credit for School Repair and
Maintenance ....................................
g. Carryover of the Renewable Energy
Technologies Income Tax Credit (For
Systems Installed and Placed in
Service Before July 1, 2009) ...........
h. Renewable Energy Technologies
Income Tax Credit (Nonrefundable) ..
i. Carryover of the Cesspool Upgrade,
Conversion, or Connection
Income Tax Credit ............................
j. Carryover of the Earned Income
Tax Credit (Nonrefundable) .............
k. Healthcare Preceptor Tax Credit .....
l. Historic Preservation Income Tax Credit
m. Low-Income Housing Tax Credit .....
n. Carryover of the High Technology
Business Investment Tax Credit ......
o. Add lines a through n. Enter
the amount here and on line 27.......

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Instructions for Form N-323
(REV. 2023) Page 5

Worksheets (continued)

PART IX — ORGANIC FOODS PRODUCTION PART X — RENEWABLE FUELS PRODUCTION TAX CREDIT
TAX CREDIT WORKSHEET (FOR TAX YEARS BEFORE JANUARY 1, 2022) WORKSHEET
Tax Credit Amount Tax Credit Amount
a. Income Taxes Paid to Another a. Income Taxes Paid to Another
State or Foreign Country ................. State or Foreign Country .................
b. Enterprise Zone Tax Credit .............. b. Enterprise Zone Tax Credit ..............
c. Pass-Through Entity Tax Credit ....... c. Pass-Through Entity Tax Credit .......
d. Carryover of the Energy d. Carryover of the Energy
Conservation Tax Credit .................. Conservation Tax Credit ..................
e. Credit for Employment of e. Credit for Employment of
Vocational Rehabilitation Vocational Rehabilitation
Referrals .......................................... Referrals ..........................................
f. Credit for School Repair and f. Credit for School Repair and
Maintenance .................................... Maintenance ....................................
g. Carryover of the Renewable Energy g. Carryover of the Renewable Energy
Technologies Income Tax Credit (For Technologies Income Tax Credit (For
Systems Installed and Placed in Systems Installed and Placed in
Service Before July 1, 2009) ........... Service Before July 1, 2009) ...........
h. Renewable Energy Technologies h. Renewable Energy Technologies
Income Tax Credit (Nonrefundable) .. Income Tax Credit (Nonrefundable) ..
i. Carryover of the Cesspool Upgrade, i. Carryover of the Cesspool Upgrade,
Conversion, or Connection Conversion, or Connection
Income Tax Credit ............................ Income Tax Credit ............................
j. Carryover of the Earned Income j. Carryover of the Earned Income
Tax Credit (Nonrefundable) ............. Tax Credit (Nonrefundable) .............
k. Healthcare Preceptor Tax Credit ..... k. Healthcare Preceptor Tax Credit .....
l. Historic Preservation Income Tax Credit l. Historic Preservation Income Tax Credit
m. Low-Income Housing Tax Credit ..... m. Low-Income Housing Tax Credit .....
n. Carryover of the High Technology n. Carryover of the High Technology
Business Investment Tax Credit ...... Business Investment Tax Credit ......
o. Carryover of the Technology o. Carryover of the Technology
Infrastructure Renovation Tax Credit Infrastructure Renovation Tax Credit
p. Carryover of the Residential p. Carryover of the Residential
Construction and Remodeling Construction and Remodeling
Tax Credit ......................................... Tax Credit .........................................
q. Carryover of the Hotel q. Carryover of the Hotel
Construction and Remodeling Construction and Remodeling
Tax Credit ......................................... Tax Credit .........................................
r. Carryover of the Capital r. Carryover of the Capital
Infrastructure Tax Credit .................. Infrastructure Tax Credit ..................
s. Carryover of the Renewable Fuels s. Add lines a through r. Enter
Production Tax Credit (For Tax the amount here and on line 42.......
Years Before January 1, 2022) .........
t. Add lines a through s. Enter
the amount here and on line 37.......

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