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INSTRUCTIONS STATE OF HAWAII - DEPARTMENT OF TAXATION
FORM N-330
(REV. 2023) INSTRUCTIONS FOR FORM N-330
CREDIT FOR SCHOOL REPAIR AND MAINTENANCE

(3) Schedule K-1 (Required only if you are claiming a distributive share of
GENERAL INSTRUCTIONS a credit from a partnership, S Corporation, estate, or trust.)
PURPOSE OF FORM Even if you are not able to use this credit because your tax liability on line
Use Form N-330 to figure and claim the credit for school repair and main- 16 is zero, file the forms listed above with your Hawaii tax return to claim and
tenance under section 235-110.2, Hawaii Revised Statutes (HRS). carryover your unused credit. If the forms are not attached, then no claim for
the credit has been made, and you will lose the carryover of your unused
WHO MAY CLAIM THIS CREDIT credit.
Each taxpayer licensed under chapter 444, 460J, or 464, HRS, who is DEADLINE FOR CLAIMING THE CREDIT
subject to Hawaii income taxes, and who does not owe delinquent taxes,
penalties, or interest, may claim a nonrefundable credit for the value of con- The deadline to claim the credit, including amended claims, is 12 months
tributions of in-kind services for the repair and maintenance of public schools after the close of your taxable year. You cannot claim or amend the credit
provided by the licensed taxpayer in Hawaii. The credit shall be deductible after the deadline.
from the taxpayer’s net income tax liability, if any, for the taxable year in which
the credit is properly claimed. SPECIFIC INSTRUCTIONS
Enter the name(s) shown on your return. If filing a joint return, enter the
FLOW-THROUGH ENTITIES social security number of the person whose name is shown first on the return.
In the case of a taxpayer licensed under chapter 444, 460J, or 464, HRS, Lines 1 through 8 must be completed by the Department of Educa-
who is also a partnership, S Corporation, estate, or trust, the credit is al- tion prior to commencement of the work.
lowable for the value of contributions of in-kind services for the repair and
maintenance of public schools provided by the entity. The cost upon which Line 6 — Chapter 444, HRS, applies to general specialty building industry
the credit is computed is determined at the entity level. Form N-330 shall be contractors; Chapter 460J, HRS, applies to pest control operators; Chapter
completed and attached to the entity’s return. Each partner, S Corporation 464, HRS, applies to professional engineers, architects, surveyors, and land-
shareholder, or beneficiary of an estate or trust shall separately report its scape architects.
share of the credit (amount on the Schedule K-1 given to them) on their own
Form N-330. Attach Schedule K-1 and their completed Form N-330 to the Line 7 — Enter the contractor’s or responsible managing employee’s
separate return. (RME) license number.
CREDIT REQUIREMENTS Line 8 — A tax clearance certificate to certify that the contractor does not
owe any delinquent Hawaii taxes, penalties or interest must be obtained from
For purposes of the credit: the Department of Taxation before the Department of Education will certify
the value of the contributed in-kind services.
“Value of contributions of in-kind services” means the fair market value of
uncompensated services or labor as determined and certified by the Depart- Complete lines 9 through 14 to claim the credit, unless you are
ment of Education. claiming your distributive share of the credit distributed from a partner-
ship, an S corporation, an estate, or a trust.
“Public schools” has the same meaning as defined in section 302A-101.
(All academic and noncollege type schools maintained by the Department of Note: If you are only claiming your distributive share of a credit distrib-
Education in accordance with law.) uted from a partnership, an S corporation, an estate, or a trust, skip lines 9
through 10 and begin on line 11.
The Department of Education shall maintain records of the names of tax-
payers eligible for the credit and the total value of in-kind services contributed Line 9 — Enter the amount of the certified value listed in line 4 of the form
for the repair and maintenance of public schools for the taxable year. All con- or $40,000, whichever is less. If you contributed more than once, add the to-
tributions shall be verified by the Department of Education. The Department tal certified contributions from line 4 of all Forms N-330 and enter the total on
of Education shall total all contributions that the Department certifies. Upon one of the Forms N-330 to claim the credit. Your total contributions of in-kind
each determination, the Department of Education shall issue a certificate to services claimed cannot be more than $40,000.
the taxpayer certifying: Note: All in-kind services contributed must be certified by the Depart-
(1) The amount of the contribution; ment of Education: Department of Education, Auxiliary Services Branch,
3633 Waialae Avenue, Building C210, Honolulu, Hawaii 96816. Call (808)
(2) That the taxpayer is licensed under chapter 444, 460J, or 464; and 784-6800 for further information.
(3) That the taxpayer has obtained a current and valid certificate signed Line 10 — Multiply line 9 by 10% (.10). Enter the result here.
by the Director of Taxation, showing that the taxpayer does not owe
the State any delinquent taxes, penalties, or interest. Line 11 — Enter the name and federal employer identification number of
any flow-through entity that has passed the credit through to you. Also, if you
The taxpayer shall attach the certificate from the Department of Education are claiming your share of the credit for school repair and maintenance from
to the taxpayer’s tax return. When the total amount of certified contributions a partnership, S corporation, estate or trust, then enter the amount here. If
reaches $2,500,000, the Department of Education shall immediately discon- you received a Schedule K-1 (Form N-20), enter the amount from line 22. If
tinue certifying contributions and notify the Department of Taxation. you received a Schedule K-1 (Form N-35), enter the amount from line 16g.
The State shall provide not more than $250,000 in tax credits for contribu- If you received a Schedule K-1 (Form N-40), enter the amount from line 9c
tions of in-kind services in Hawaii for the repair and maintenance of public (credit for school repair and maintenance). If you received a federal Form
schools. 1099-PATR, enter the appropriate amount.
The amount of the credit for the taxable year shall be equal to ten percent Line 12. Total New Credit Claimed — This is the total amount of the
of the value of contributions of in-kind services to the Hawaii school repair credit being claimed in the current year. Enter this amount on Schedule CR,
and maintenance fund for that taxable year; provided that the aggregate line 27, in Column (a). Form N-20 filers, enter the amount on line 14 on
value of the contributions of in-kind services claimed by a taxpayer shall not Form N-20. Schedule K, line 22. Form N-35 filers, enter the amount on line
exceed $40,000. 14 on Form N-35, Schedule K, line 16g. Form N-40 filers, enter the distribu-
tive share amount on Form N-40, Schedule K-1, line 9c for each beneficiary,
The credit allowed shall be claimed against net income tax liability for the otherwise continue on to line 13. All others, continue to line 13.
taxable year. A tax credit which exceeds the taxpayer’s income tax liability
may be used as a credit against the taxpayer’s income tax liability in subse- Line 13 — This line is for the carryover of unused credit for school repair
quent years until exhausted. and maintenance from prior years.
To claim the credit, you must complete and attach to your Hawaii income Line 14 — Add lines 12 and 13. This is your tentative current year credit
tax return: for school repair and maintenance.
(1) Form N-330
(2) Schedule CR (For tax returns for which Schedule CR is required.)

See page 2 for Credit Worksheet and continuation of instructions

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Instructions for Form N-330
Page 2 (Rev. 2023)

Line 16 — Certain other credits must be used to offset a taxpayer’s tax li-
ability before the credit for school repair and maintenance may be used. If you
Adjusted Tax Liability Limitations are claiming other nonrefundable credits, complete the Credit Worksheet
Line 15 — Enter your adjusted tax liability. below and enter the result on line 16.
• Form F-1 filers, enter the amount from Form F-1,line 71. Line 18. Total Credit Applied — Compare the amounts on lines 14 and
17. Enter the smaller of line 14 or 17, rounded to the nearest dollar, here and
• Form N-11 filers, enter the amount from Form N-11, line 34. in Column (b) on Schedule CR, line 27. This is your maximum credit allowed
for this taxable year.
• Form N-15 filers, enter the amount from Form N-15, line 51.
Line 19. Unused Credit to Carryover — This represents your carry-
• Form N-30 filers, enter the amount from Form N-30, line 13. over of your credit for school repair and maintenance which exceeds your
• Form N-40 filers, enter the amount from Form N-40, Schedule G, tax liability and may be used as a credit against your tax liability in subse-
line 3. quent years until exhausted. If this amount is more than zero, also enter it on
Schedule CR, in Column (c), line 27.
• Form N-70NP filers, enter the amount from line 18.

CREDIT WORKSHEET
Tax Credit Amount
a. Income Taxes Paid to Another
State or Foreign Country .......
b. Enterprise Zone Tax Credit ....
c. Pass-Through Entity
Tax Credit ...............................
d. Carryover of the Energy
Conservation Tax Credit ........
e. Credit for Employment of
Vocational Rehabilitation
Referrals ................................
f. Add lines a through e.
Enter the amount here
and on line 16 ........................

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