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                                                                                                                                         Clear Form
INSTRUCTIONS 
FORM N-360                             STATE OF HAWAII - DEPARTMENT OF TAXATION 
(REV. 2023)                            INSTRUCTIONS FOR FORM N-360 
                                       RENEWABLE FUELS PRODUCTION 
                  TAX CREDIT (FOR TAX YEARS BEGINNING AFTER 12/31/21)
GENERAL INSTRUCTIONS                                                          owe, then you may carryover the remaining credit and apply it towards 
                                                                              next year’s income tax. You may continue to carryover the credit until 
PURPOSE OF FORM                                                               it is used up.
Use Form N-360 to figure and claim the renewable fuels production             REFUNDABLE  (IRREVOCABLE): You  may  make  an  irrevocable 
tax credit allowed under section 235-110.32, Hawaii Revised Statutes.         election to claim the credit as refundable. A refundable credit means 
WHO MAY CLAIM THIS CREDIT                                                     you will receive a tax refund if your credit amount is greater than the 
                                                                              amount of income tax you owe. You may elect to claim the credit as a 
For  taxable  years  beginning  AFTER  December  31,  2021,  each             refundable credit under the following circumstances:
taxpayer  producing  renewable  fuels  that  obtains  a  credit  certificate 
issued  by  the  Hawaii  State  Energy  Office  (HSEO)  may  claim  a         Reduced Credit
renewable fuels production tax credit.                                        You must reduce the credit amount by 30%, unless you meet the 
Each taxpayer, together with all of its related entities as determined        conditions described in the “Full Credit” paragraph below.
under  section  267(b)  of  the  Internal  Revenue  Code  (IRC)  and  all     Full Credit
business entities under common control, as determined under sections 
414(b), 414(c), and 1563(a) of the IRC, is not eligible for more than a       You may claim the full credit as a refundable credit if you are an 
single ten-year credit period.                                                individual taxpayer and any of the following apply:
FLOW-THROUGH ENTITIES                                                         (1) All  of  your  (and  your  spouse’s)  income  is  retirement  income 
                                                                              such as pension distributions, social security, or distributions from a 
In the case of a partnership, S corporation, estate, or trust, the tax        public retirement system that is exempt from Hawaii income tax; or
credit allowable shall be determined at the entity level. Distribution and 
share of the credit shall be determined pursuant to section 704(b) (with      (2) Your  Hawaii  adjusted  gross  income  (AGI)  is  $20,000  or  less 
respect to partner’s distributive share) of the Internal Revenue Code.        ($40,000 or less if you are married filing a joint return).
For a fiscal year taxpayer, the taxpayer should report the credit in the      Irrevocable Election
taxable year in which the calendar year end is included.
                                                                              Once an election is made to treat the tax credit as refundable, 
CREDIT REQUIREMENTS                                                           the election cannot be revoked. An amended return cannot be filed 
Before the production of any renewable fuels for the calendar year,           to change the tax credit from refundable to nonrefundable. A taxpayer 
the taxpayer shall provide written notice of the taxpayer’s intention to      and spouse who do not file a joint tax return shall only be entitled to 
begin production of renewable fuels to the Department of Taxation and         make this election to the extent that they would have been entitled to 
the HSEO.                                                                     make the election had they filed a joint return.
The taxpayer shall provide written notice to the Director of Taxation         DEFINITIONS FOR PURPOSES OF THE CREDIT
and to the Chief Energy Officer of the HSEO within 30 days following          “Credit period” means a maximum period of ten consecutive years, 
the start of production to include the production start date and expected     beginning  from  the  first  taxable  year  in  which  a  taxpayer  begins 
renewable fuels production for the next 12 months.                            renewable  fuels  production  at  a  level  of  at  least  2.5  billion  British 
The tax credit is the lesser of 20 cents per 76,000 British thermal           thermal units of renewable fuels per calendar year.
units  of  renewable  fuels  using  the  lower  heating  value  sold  for     ‘’Renewable feedstocks” means:
distribution in Hawaii or $3,500,000 per taxable year. The taxpayer’s 
production of renewable fuels cannot be less than 2.5 billion British         (1)  Biomass crops and other renewable organic material, including 
thermal units of renewable fuels per year. The tax credit can only be         but not limited to logs, wood chips, wood pellets, and wood bark;
claimed for fuels with lifecycle emissions below that of fossil fuels.        (2)  Agricultural residues;
No other tax credit may be claimed under this chapter for the costs           (3)  Oil  crops,  including  but  not  limited  to  algae,  canola,  jatropha, 
related to renewable fuels production that are used to properly claim a       palm, soybean, and sunflower;
tax credit under this section for the taxable year.                           (4)  Sugar and starch crops, including but not limited to sugar cane 
To  claim  this  credit,  you  must  attach  to  your  Hawaii  income  tax    and cassava;
return:                                                                       (5)  Other agricultural crops;
(1)  Form N-360 (Complete Part II and attach.)                                (6)  Grease and waste cooking oil;
(2)  A completed Schedule CR (For tax returns for which Schedule CR           (7)  Food wastes;
is required.)                                                                 (8)  Municipal solid wastes and industrial wastes;
(3)  A completed Schedule K-1 (Required only if you are a member of           (9)  Water, including wastewater; and
a flow-through entity claiming a credit for the entity’s renewable            (10) Animal residues and wastes,
fuels production.)
                                                                              that can be used to generate energy.
(4)  The credit certificate issued to you by the HSEO.
                                                                              “Renewable  fuels”  means  fuels  produced  from  renewable 
DEADLINE FOR CLAIMING THE CREDIT                                              feedstocks; provided that the fuel:
The deadline to claim the credit, including amended claims, is 12             (1)  Is sold as a fuel in the State; and
months after the close of your taxable year. You cannot claim or amend 
the credit after the deadline.                                                (2)  Meets  the  relevant  ASTM  International  specifications  or  other 
                                                                              industry  specifications  for  the  particular  fuel,  including  but  not 
HOW TO TREAT THE CREDIT                                                       limited to:
NONREFUNDABLE:  A  nonrefundable  credit  means  your  credit                 (A)  Methanol, ethanol, or other alcohols;
will  be  applied  towards  the  amount  of  income  tax  you  owe.  If  your (B)  Hydrogen;
nonrefundable credit is greater than the amount of income tax that you

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Instructions for Form N-360
Page 2 (REV. 2023)
(C) Biodiesel or renewable diesel; identification number of any flow-through entity that has passed the
(D) Biogas; tax credit through to you and check the appropriate box.
(E) Other biofuels; Line 3. Total New Credit - If you are electing a nonrefundable credit,
enter this amount on line 9 and on Schedule CR in Column (a) of the
(F) Renewable jet fuel or renewable gasoline; or appropriate line.
(G) Logs, wood chips, wood pellets, or wood bark. • Form N-20 filers, enter the amount on line 3 on Form N-20, Sched-
ule K; skip lines 4 through 14 and continue to Part III.
CERTIFICATION OF CREDITS • Form N-35 filers, enter the amount on line 3 on Form N-35, Sched-
Not later than 30 days following the end of the calendar year, the ule K; skip lines 4 through 14; and continue to Part III.
taxpayer must complete and file an independent third-party certified • Form N-40 filers, enter the distributive share amount on Form
statement with HSEO. The certified statement is to be obtained at the N-40, Schedule K-1, for each beneficiary, otherwise, continue to
taxpayer’s own expense. HSEO will issue a credit certificate to the line 4.
taxpayer verifying the amount of renewable fuels produced and sold, • All others continue to line 4.
the credit amount certified for each taxable year, and the cumulative Lines 4 - 8. If you are electing a refundable credit, complete lines 4-8.
amount of the tax credit during the credit period. The taxpayer
shall file the credit certificate with the taxpayer’s tax return with the Line 9. If you are electing a nonrefundable credit, enter the amount
Department of Taxation. The Director of Taxation may audit and adjust from line 3 and on Schedule CR in Column (a) of the appropriate line.
the certification to conform to the facts. Line 10. Enter your adjusted tax liability.
If in any taxable year the annual amount of certified credits reaches • Form N-11 filers, enter the amount from Form N-11, line 34.
$20,000,000 in the aggregate, HSEO will immediately discontinue • N-15 filers, enter the amount from Form N-15, line 51.
issuing certificates for that taxable year and notify the Department • Form N-30 filers, enter the amount from Form N-30, line 13.
of Taxation. If the credit claims exceed $20,000,000 for all eligible • Form N-40 filers, enter the amount from Form N-40, Schedule G,
taxpayers in any given calendar year, the $20,000,000 shall be divided line 3
between all eligible taxpayers for that year in proportion to the total • Form N-70NP filers, enter the amount from Form N-70NP, line 18.
amount of renewable fuels produced by all eligible taxpayers.
Line 11. Certain other tax credits must be used to offset a taxpayer’s
To request a credit certificate to claim the Renewable Fuels tax liability before the renewable fuels production tax credit may be
Production Tax Credit, contact HSEO at: used. If you are claiming other nonrefundable tax credits, complete the
HSEO Credit Worksheet below and enter the result on line 11. If you are not
claiming any of the nonrefundable tax credits listed on the worksheet,
Hawaii State Energy Office enter zero on line 11.
235 S. Beretania Street, 5th Floor
Honolulu, Hawaii 96813 Line 13. Total Credit Applied - Compare the amounts on lines 3 and
12. Enter the smaller of line 3 or 12, rounded to the nearest dollar, here
Telephone: (808) 587-3807 and on Schedule CR in Column (b) of the appropriate line. This is your
Email: dbedt.energyoffice@hawaii.gov maximum credit allowed for this taxable year.
Line 14. Unused Credit to Carryover - This represents your carry-
SPECIFIC INSTRUCTIONS over of renewable fuels production tax credit which exceed your net
Part II , Computation of Tax Credit income tax liability and may be used as a credit against your net in -
Line 2. If you are claiming your share of the renewable fuels produc- come tax liability in subsequent years until exhausted. If this amount
tion tax credit from a partnership, S corporation, estate or trust, then is more than zero, also enter it on Schedule CR in Column (c) of the
enter the amount here. Also, enter the name and federal employer appropriate line.
CREDIT WORKSHEET CREDIT WORKSHEET
(CONTINUED)
Tax Credit Amount
a. Income Taxes Paid to Another Tax Credit Amount
State or Foreign Country ....... k. Healthcare Preceptor Income 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. Carryover of the High Technology
Conservation Tax Credit ........ Business Investment Tax Credit
e. Credit for Employment of o. Carryover of the Technology
Vocational Rehabilitation Infrastructure Renovation Tax Credit
Referrals ................................
p. Carryover of the Residential
f. Credit for School Repair and Construction and Remodeling Tax Credit
Maintenance ..........................
q. Carryover of the Hotel
g. Carryover of the Renewable Energy Construction and Remodeling Tax Credit
Technologies Income Tax Credit (For
Systems Installed and Placed In r. Carryover of the Capital Infrastructure
Service Before July 1, 2009) .. Tax Credit ...............................
h. Renewable Energy Technologies s. Carryover of the Renewable Fuels
Income Tax Credit (Nonrefundable) Production Tax Credit (For Years Before 12/31/21)
i. Carryover of the Cesspool Upgrade, t. Carryover of the Organic Foods
Conversion, or Connection Income Production Tax Credit .........
Tax Credit .................................
u. Add lines a through t.
j. Carryover of the Earned Income Enter the amount here and
Tax Credit (Nonrefundable) .... on Part II, line 11 ....................

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