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INSTRUCTIONS STATE OF HAWAII—DEPARTMENT OF TAXATION
SCHEDULE CR
(REV. 2023) INSTRUCTIONS FOR SCHEDULE CR
SCHEDULE OF TAX CREDITS
(NOTE: References to “married” and “spouse” are also references to “in a civil union”
and “civil union partner,” respectively.)
PURPOSE OF FORM Form N-35, Schedule K-1. Report each shareholder’s distributive
share of the fuel tax credit for commercial fishers on line 16a of Schedule
Schedule CR, Schedule of Tax Credits, is used to summarize the total K-1.
refundable and nonrefundable tax credits claimed. Schedule CR and the Form N-40, Schedule K-1. Report each beneficiary’s distributive share
applicable tax credit form(s) MUST be properly completed and attached of the fuel tax credit for commercial fishers on line 9c of Schedule K-1.
immediately behind your tax return to claim, apply or carryover the tax
credits listed on the form. Enter any total refundable or nonrefundable tax To claim this credit. Complete Form N-163 and Schedule CR and
credits from lines 10 and 32 on the appropriate lines of your tax return. attach them to your return.
For Form N-40 filers, enter the fiduciary’s share of the credit on
IMPORTANT Schedule CR, line 2.
Unused carryover amounts must be claimed every tax year until the Deadline for claiming this credit. You cannot claim or amend the
carryover amount is exhausted. Schedule CR and the applicable tax credit credit after 12 months following the close of your taxable year.
forms must be attached to your tax return with the claimed unused carryover
amounts, whether or not you are applying any carryover amounts to your Line 3 – Motion Picture, Digital Media, and Film
remaining tax liability for the tax year, or the unused carryover amounts Production Income Tax Credit (Form N-340)
will be forfeited. Act 217, Session Laws of Hawaii (SLH) 2022, amends the motion
picture, digital media, and film production income tax credit for taxable
PART I — Refundable Tax Credits years beginning after December 31, 2022 by (1) changing the repeal date
Complete Part I of Schedule CR to claim the following refundable tax credits. from January 1, 2026 to January 1, 2033; (2) increasing the credit amount
from 20% of qualified production costs to 22% in a county with a population
Line 1 – Capital Goods Excise Tax Credit (Form N-312) of over 700,000, and from 25% of qualified production costs to 27% in a
A 4% credit is available to Hawaii businesses that acquire qualifying county with a population of 700,000 or less; (3) increasing the credit ceiling
business property and place it in service during the taxable year. from $15,000,000 per qualified production to $17,000,000 per qualified
For more information, see the instructions for Form N-312, Tax production; (4) reducing the amount of qualified productions costs from
Information Release No. 88-6, “Capital Goods Excise Tax Credit,” $200,000 to $100,000; (5) removing the requirement for productions to
Tax Information Release No. 88-8, “Capital Goods Excise Tax Credit submit a verification review by a qualified certified public accountant; (6)
Recapture,” Tax Information Release No. 89-4, “The Taxpayer Who requiring the report by Department of Business Economic Development
Is Entitled To The Capital Goods Excise Tax Credit When The Parties and Tourism (DBEDT) to include the dollar amount claimed, name of the
Characterize A Transaction As A Lease Or Sale-Leaseback,” and Tax company, and name of the qualified production of the taxpayer; (7) changing
Information Release No. 2001-4, “The Definition of “Cost”; The Payment the time frame for DBEDT to issue a letter to the taxpayer claiming the tax
of Tax Requirement; and Safe Harbor Guidelines Pertaining to the Capital credit; and (8) requiring taxpayers to submit a fee to DBEDT.
Goods Excise Tax Credit.” A taxpayer may claim an income tax credit of (1) 22% of the qualified
Form N-20, Schedule K-1. Report each partner’s distributive share of production costs incurred before January 1, 2033, by a qualified production
in the City and County of Honolulu, and (2) 27% of the qualified production
the total cost of the qualifying property, not the credit amount, on line 16 costs incurred before January 1, 2033, by a qualified production in the
of Schedule K-1. If the partnership has credits from more than one source Kauai, Maui, or Hawaii county. The total tax credits claimed per qualified
such as another flow-through entity, separately identify each amount in the production shall not exceed $17,000,000.
“Other Information Provided by Partnership” section.
For more information, see Form N-340, Motion Picture, Digital Media,
Form N-35, Schedule K-1. Report each shareholder’s distributive and Film Production Income Tax Credit.
share of the total cost of the qualifying property, not the credit amount, on
line 16b of Schedule K-1. Form N-20, Schedule K-1. Report each partner’s distributive share of
the qualified production costs on line 21 of Schedule K-1. If the partnership
Form N-40, Schedule K-1. Report each beneficiary’s distributive share has credits from more than one source such as another flow-through entity,
of the total cost of the qualifying property, not the credit amount, on line 7a separately identify each amount in the “Other Information Provided by
of Schedule K-1. Partnership” section.
To claim this credit. Complete Form N-312 and Schedule CR and Form N-35, Schedule K-1. Report each shareholder’s distributive
attach them to your return. share of the qualified production costs on line 16f of Schedule K-1.
For Form N-40 filers, enter the fiduciary’s share of the credit on Form N-40, Schedule K-1. Report each beneficiary’s distributive share
Schedule CR, line 1. of the qualified production costs on line 9c of Schedule K-1.
Deadline for claiming this credit. You cannot claim or amend the To claim this credit. Complete Form N-340 and Schedule CR and
credit after 12 months following the close of your taxable year. attach them to your return.
Line 2 – Fuel Tax Credit for Commercial Fishers (Form For Form N-40 filers, enter the fiduciary’s share of the credit on
N-163) Schedule CR, line 3.
Each principal operator of a commercial fishing vessel may claim an Deadline for claiming this credit. You cannot claim or amend the
income tax credit against their income tax for certain fuel taxes paid during credit after 12 months following the close of your taxable year.
the year. The tax credit shall be an amount equal to the fuel taxes imposed Line 4 – Refundable Renewable Energy Technologies
under section 243-4(a), Hawaii Revised Statutes (HRS), and paid by the (For Systems Installed and Placed in Service on
principal operator during the taxable year. Income Tax Credit
or After July 1, 2009)
Form N-20, Schedule K-1. Report each partner’s distributive share of (Form N-342)
the fuel tax credit for commercial fishers on line 17 of Schedule K-1. If the If you install and place in service an eligible renewable energy
partnership has credits from more than one source such as another flow- technology system in Hawaii, you may qualify to claim this credit. You may
through entity, separately identify each amount in the “Other Information claim the credit as nonrefundable or refundable. For information on how
Provided by Partnership” section. to claim the credit as nonrefundable, see the instructions for line 28. A
refundable credit means you will receive a tax refund if your credit amount

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Page 2 Instructions for Schedule CR (REV. 2023)
is greater than the amount of income tax you owe. You may elect to claim Line 5 – Important Agricultural Land Qualified
the credit as a refundable credit under the following circumstances:
Agricultural Cost Tax Credit (Form N-344)
Reduced Credit
Act 139, SLH 2022, extends the sunset date of the important agricultural
For a solar energy system such as a solar water heater or photovoltaic land agricultural cost tax credit to December 31, 2030.
system, you must reduce the credit amount by 30% unless you meet the
conditions described in the “Full Credit” paragraph. If you are claiming the important agricultural land qualified agricultural
Full Credit cost tax credit, see Form N-344 for information.
For a solar or wind energy system, you may claim the full credit as a Form N-20, Schedule K-1. Report each partner’s distributive share
refundable credit if you are an individual taxpayer and any of the following of the important agricultural land qualified agricultural cost tax credit on
apply: line 24 of Schedule K-1. If the partnership has credits from more than
one source such as another flow-through entity, separately identify each
(1) All your (and your spouse’s) income is retirement income such as amount in the “Other Information Provided by Partnership” section.
pension distributions, social security, or distributions from a public
retirement system that is exempt from Hawaii income tax; or Form N-35, Schedule K-1. Report each shareholder’s distributive
share of the important agricultural land qualified agricultural cost tax credit
(2) Your Hawaii adjusted gross income (AGI) is $20,000 or less on line 16i of Schedule K-1.
($40,000 or less if you are married filing a joint return).
Form N-40, Schedule K-1. Report each beneficiary’s distributive share
A taxpayer and spouse who do not file a joint tax return shall only be of the important agricultural land qualified agricultural cost tax credit on line
entitled to make this election to the extent that they would have been 9c of Schedule K-1.
entitled to make the election had they filed a joint tax return.
To claim this credit. Complete Form N-344 and Schedule CR and
Irrevocable Election attach them to your return.
Once an election is made to treat the tax credit as refundable, the For Form N-40 filers, enter the fiduciary’s share of the credit on
election cannot be revoked. An amended return cannot be filed to change Schedule CR, line 5.
the tax credit from refundable to nonrefundable.
Deadline for claiming this credit. You cannot claim or amend the
Total Output Capacity credit after 12 months following the close of your taxable year.
A system classified under “other solar energy system” such as a
photovoltaic system must meet the total output capacity requirement to Line 6 – Tax Credit for Research Activities (Form
qualify for the credit unless an exception applies. N-346)
The total output capacity requirements are: Note: The federal credit for increasing research activities must be
• Single-family residential property – 5 kilowatts per system claimed in order to claim the state tax credit for research activities.
• Multi-family residential property – 0.360 kilowatts per unit per A qualifying taxpayer may claim a refundable tax credit for research
system activities for tax years beginning before January 1, 2025.
• Commercial property – 1,000 kilowatts per system In order to qualify for this tax credit, the qualified high technology
For more information, see Form N-342 and its instructions, Tax business shall also claim a federal tax credit for the same qualified
Information Release No. 2010-10, “Common Income Tax & General Excise research activities under Internal Revenue Code (IRC) section 41.
Tax Issues Associated with the Renewable Energy Technologies Income Qualified research expenses shall not include research expenses incurred
Tax Credit, HRS §235-12.5,” and Tax Information Release No. 2022-02, outside Hawaii. Research expenses must be certified in order to claim the
“Updated Guidance Relating to the Renewable Technologies Income Tax credit. See Forms N-346 and N-346A for details.
Credit.” Form N-20, Schedule K-1. Report each partner’s distributive share
Form N-20, Schedule K-1. Use Form N-342A to report each partner’s of the tax credit for research activities on line 25 of Schedule K-1. If the
distributive share of the renewable energy technologies income tax credit partnership has credits from more than one source such as another flow-
and attach it to the partner’s Schedule K-1. The partner’s distributive share through entity, separately identify each amount in the “Other Information
is reported on line 23 of Schedule K-1. Partners will use Form N-342 to Provided by Partnership” section.
claim their credit and need to attach a copy of their Form N-342A to their Form N-35, Schedule K-1. Report each shareholder’s distributive
Hawaii net income tax return in order to receive the credit. If the partnership share of the tax credit for research activities on line 16j of Schedule K-1.
has credits from more than one source such as another flow-through entity,
separately identify each amount in the “Other Information Provided by Form N-40, Schedule K-1. Report each beneficiary’s distributive share
Partnership” section. of the tax credit for research activities on line 7c of Schedule K-1.
Form N-35, Schedule K-1. Use Form N-342A to report each To claim this credit. Complete Form N-346 and Schedule CR and
shareholder’s distributive share of the renewable energy technologies attach them to your return. Form N-346A, which must be certified, and your
income tax credit and attach it to the shareholder’s Schedule K-1. The federal Form 6765 also must be attached to your return.
shareholder’s distributive share is reported on line 16h of Schedule K-1. For Form N-40 filers, enter the fiduciary’s share of the credit on
Shareholders will use Form N-342 to claim their credit and need to attach Schedule CR, line 6.
a copy of their Form N-342A to their Hawaii net income tax return in order Deadline for claiming this credit. You cannot claim or amend the
to receive the credit. credit after 12 months following the close of your taxable year.
Form N-40, Schedule K-1. Use Form N-342A to report each
beneficiary’s distributive share of the renewable energy technologies Line 7 – Refundable Renewable Fuels Production Tax
income tax credit and attach it to the beneficiary’s Schedule K-1. The Credit (For Tax Years Beginning After December 31, 2021) (Form
beneficiary’s distributive share is reported on line 9c of Schedule K-1. N-360)
Beneficiaries will use Form N-342 to claim their credit and need to attach
a copy of their form N-342A to their Hawaii net income tax return in order Act 216, SLH 2022, establishes a new renewable fuels production tax
to receive the credit. credit for taxable years beginning after December 31, 2021. (1) The credit
is available for 10 consecutive years beginning with the first taxable year
To claim this credit. Complete Form N-342 and Schedule CR and the taxpayer claiming the credit begins producing at least 2.5 billion British
attach them to your return. Fill in the appropriate oval on Schedule CR to thermal units (BTU) of renewable fuel per year; (2) the dollar amount of the
indicate the type of energy system. credit is 20 cents per 76,000 BTU of renewable fuels; (3) the Hawaii State
For Form N-40 filers, enter the fiduciary’s share of the credit on Energy Office must certify all claims for the credit, which cannot exceed
Schedule CR, line 4. $3,500,000 in any given year; and (4) allows the taxpayer to elect to have
Deadline for claiming this credit. You cannot claim or amend the the credit be refunded to them.
credit after 12 months following the close of your taxable year.

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Instructions for Schedule CR (REV. 2023)                                                                                                                    Page 3
Each taxpayer producing renewable fuels may claim a nonrefundable                    Lines 9a and 9b – Other Credits
or refundable  renewable  fuels  production  tax credit  for taxable  years 
beginning after December 31, 2021. For information on how to claim the               Line 9a – Pro Rata Share of Taxes Withheld and Paid by a Partnership or 
credit as nonrefundable, see the instructions for line 31. A refundable credit       S Corporation on the Sale of Hawaii Real Property Interests
means you will receive a tax refund if your credit amount is greater than            If the tax was withheld by a partnership or S corporation, and you are 
the amount of income tax you owe. You may elect to claim the credit as a             taxable on a pro rata share of the entity’s gain on the sale, include ONLY 
refundable under the following circumstances:                                        the amount of your pro rata share of any net income taxes withheld and 
Reduced Credit                                                                       paid by the partnership or S corporation on Schedule CR, line 9a, and 
You must  reduce the credit amount by 30% unless you meet the                        attach a copy of the Schedule K-1 issued to you by the partnership or S 
conditions described in the “Full Credit” paragraph.                                 corporation.
Full Credit                                                                          Note:   If  the  partnership  or  S  corporation  filed  a  Form  N-288C, 
                                                                                     Application  for Tentative Refund of Withholding  on Dispositions  by 
If you are an individual taxpayer and any of the following apply:                    Nonresident Persons of Hawaii Real Property Interests, you may not claim 
(3)  All your (and your spouse’s) income is retirement income such as                this credit for your share of the amount being refunded to the entity.
     pension distributions, social security, or distributions from a public          Form N-20, Schedule K-1. Report each partner’s distributive share of 
     retirement system that is exempt from Hawaii income tax; or                     the credit for income tax withheld on Form N-288A on line 29 of Schedule 
(4)  Your Hawaii adjusted gross income (AGI)  is  $20,000 or less                    K-1. If the partnership  has credits from more than one  source  such as 
     ($40,000 or less if you are married filing a joint return).                     another flow-through entity, separately identify each amount in the “Other 
A taxpayer and spouse who do not file a joint tax return shall only be               Information Provided by Partnership” section.
entitled  to make this election  to the extent that they would  have  been           Form N-35,  Schedule K-1. Report  each  shareholder’s distributive 
entitled to make the election had they filed a joint tax return.                     share of the credit for income tax withheld on Form N-288A on line 16n of 
Irrevocable Election                                                                 Schedule K-1.
Once an election  is made  to treat the tax credit as refundable,  the               Line 9b – Credit From a Regulated Investment Company
election cannot be revoked. An amended return cannot be filed to change              A shareholder of a regulated investment company is allowed a credit 
the tax credit from refundable to nonrefundable.                                     for the tax paid  to the State by the company  on the amount  of capital 
For more information, see Form N-360, Renewable Fuels Production                     gains which by IRC section 852(b)(3)(D) is required to be included in the 
Tax Credit (For Tax Years Beginning After December 31, 2021).                        shareholder’s return. The regulated investment company will notify you of 
                                                                                     the undistributed capital gains amount and the tax paid, if any. If this credit 
Form N-20, Schedule K-1. Report each partner’s distributive share of                 applies to you, include the amount on Schedule CR, line 9b, and attach an 
the renewable fuels production tax credit on line 27 of Schedule K-1. If the         explanation.
partnership has credits from more than one source such as another flow-
through entity, separately identify each amount in the “Other Information            Part II — Nonrefundable Credits 
Provided by Partnership” section.
                                                                                     The following nonrefundable tax credits are included on Schedule CR:
Form N-35,  Schedule K-1. Report  each  shareholder’s distributive 
share of the renewable fuels production tax credit on line 16l of Schedule           Line 11 – Credit for Income Taxes Paid to Other States 
K-1.                                                                                 and Countries
Form N-40, Schedule K-1. Report each beneficiary’s distributive share                This credit may be claimed by N-11, N-15, N-40, and N-70NP filers.
of the renewable fuels production tax credit on line 9c of Schedule K-1.
To  claim  this  credit. Complete Form  N-360 and Schedule CR and                    Note: If you claim a credit for income taxes paid to other states and 
                                                                                     countries, you cannot also claim those amounts as an itemized deduction 
attach them to your return.                                                          for state and foreign income taxes paid to another state or foreign country.
For  Form  N-40  filers,  enter  the  fiduciary’s  share  of  the  credit  on        Note: This credit may not be claimed by nonresidents, unless they are 
Schedule CR, line 7.                                                                 married and filing a joint resident or joint part-year resident return.
Deadline for claiming  this  credit. You cannot claim or amend the                   If you have out-of-state income that is taxed by another state or foreign 
credit after 12 months following the close of your taxable year.                     country and also by Hawaii, you may claim a credit against your Hawaii 
Line 8 – Earned Income Tax Credit (Form N-356)                                       income for the net income tax you paid to the other state or foreign country 
                                                                                     on income you reported in Column B while you were a Hawaii resident if 
Act 163, SLH 2023, amends the earned income tax credit for taxable                   you meet the following conditions:
years 2023 to  2027 by increasing  the credit amount from  20% to  40% 
of the federal earned income tax credit claimed on the taxpayer’s federal            (1)  The income was earned while you were a Hawaii resident (or you 
income tax return.                                                                   are  married  and  filing  a  joint  resident  or  joint  part-year  resident 
                                                                                     return) and was not exempt from Hawaii income tax;
A qualifying individual taxpayer may claim a refundable earned income 
tax credit equal to 40 percent of the federal earned income credit claimed           (2)  The  income on which the  state  or  foreign tax  is  imposed was 
on the taxpayer’s federal income tax return for taxable years 2023 through           derived or received from sources outside Hawaii;
2027. For  information on how to  claim the  carryover credit from  prior            (3)  You were liable  for and  paid  tax to the foreign  jurisdiction  (net 
taxable years, see instructions for line 24.                                         amount of tax paid to a foreign  jurisdiction  after all credits, 
A qualifying individual taxpayer is a taxpayer that: (1) files a federal             reductions, and refunds allowed or allowable by the laws of the 
income tax return for the taxable year and claims the earned income credit           foreign jurisdiction have been deducted);
under  IRC  section  32,  and  (2)  files  a  Hawaii  income  tax  return  for  the  (4)  The tax paid to the other state or foreign country is an income-
taxable year using the same filing status used on the federal income tax             based  tax that is imposed  on both residents  and  nonresidents 
return, and claiming the same dependents claimed on the federal income               of  the  other state  or foreign country,  rather than a  sales, gross 
tax return.                                                                          receipts, withholding, or value added tax (i.e., taxes withheld on 
For more information, see Form N-356, Earned Income Tax Credit.                      dividends paid from foreign investments do not qualify);
To  claim  this  credit.  Complete Form  N-356 and Schedule CR and                   (5)  No credit is allowed if the foreign income is excluded on the federal 
attach them to your return.                                                          return;
Deadline for claiming  this  credit. You cannot claim or amend the                   (6)  No credit is allowed if the foreign tax credit is allowed on the federal 
credit after 12 months following the close of your taxable year.                     return;
                                                                                     (7)  The income must be taxed by the other state or foreign country for 
                                                                                     the same taxable year for which the Hawaii credit is claimed;

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Page 4 Instructions for Schedule CR (REV. 2023)
(8) No credit is allowed for penalties or interest paid to the other state the producing of agricultural products, the credit shall continue after the
or foreign country; and seventh year in an amount equal to 20% of the taxes paid during the eighth,
(9) No credit is allowed for city or local income taxes paid to another ninth, and tenth tax years. This credit is not refundable and any unused
state. credit may NOT be carried forward.
Out-of-State Tax Refund. If you claim this credit and you later receive For more information, see Form N-756, Enterprise Zone Tax Credit.
a tax refund from the other state or foreign country, you MUST report this Form N-20, Schedule K-1. Use Form N-756A to report each partner’s
to the Department. You may be subject to penalties if you fail to make this distributive share of the enterprise zone tax credit and attach it to the
report. partner’s Schedule K-1. The partner’s distributive share is reported on line
For more information, see section 235-55, HRS, and section 18-235-55, 18 of Schedule K-1. Partners will use Form N-756 to claim their credit and
HAR. need to attach a copy of their Form N-756A to their Hawaii net income tax
return in order to receive the credit. If the partnership has credits from more
To claim this credit. Complete the Other State and Foreign Tax Credit than one source such as another flow-through entity, separately identify
Worksheet in the instructions for your tax return. Enter the net amount of each amount in the “Other Information Provided by Partnership” section.
tax paid to the other state after all credits, reductions, and refunds allowed
or allowable by the laws of the other state have been deducted (net tax Form N-35, Schedule K-1. Use Form N-756A to report each
liability). You must attach the following to your return: shareholder’s distributive share of the enterprise zone tax credit and attach
it to the shareholder’s Schedule K-1. The shareholder’s distributive share is
(1) A copy of the tax return(s) from the other state(s). reported on line 16c of Schedule K-1. Shareholders will use Form N-756 to
(2) A copy of all federal Form(s) 1116 that you are filing this year. If you claim their credit and need to attach a copy of their Form N-756A to Hawaii
are not required to file federal Form 1116 net income tax return in order to receive the credit.
(3) Attach a copy of the payee statement (such as federal Form 1099- Form N-40, Schedule K-1. Use Form N-756A to report each
DIV or 1099-INT) that you received for your foreign source income. beneficiary’s distributive share of the enterprise zone tax credit and attach
See the instructions for your return for more information. it to the beneficiary’s Schedule K-1. The beneficiary’s distributive share is
reported on line 9c of Schedule K-1. Beneficiaries will use Form N-756 to
Credit for Beneficiaries of Foreign Trusts claim their credit and need to attach a copy of their form N-756A to their
Any resident beneficiary of a trust with a situs in another State may Hawaii net income tax return in order to receive the credit.
claim a credit for income taxes paid by the trust to the other State on any Complete Form N-756 and Schedule CR and
income that is attributable to assets other than intangibles. This credit is not To claim this credit.
allowed for trusts that are residents in a foreign country (or in any territory attach them to your return.
or possession of the United States). For Form N-40 filers, enter the fiduciary’s share of the credit on Schedule
The trust will inform you of what your share of the trust’s income is, CR, line 12.
and how much of it is long-term capital gains. The trust will also tell you Line 13 – Pass-Through Entity Tax Credit (Form N-362)
your share of the tax the trust paid to the other state. Find out how much
of the trust’s income was attributable to real property and tangible personal Act 50, SLH 2023, allow partnerships and S corporations to annually
property (not including stocks, bonds, mortgages, and other intangibles. elect to pay Hawaii income taxes at the entity level. Eligible members of an
Divide that number by the total amount of the trust’s income, and multiply electing PTE may claim a nonrefundable income tax credit for their pro rata
your share of the out-of-state tax by that percentage. share of PTE taxes paid by the entity. Effective for taxable years beginning
after December 31, 2022.
Credit for Shareholders of S Corporations
For more information, see Form N-362, Pass-Through Entity Tax
A shareholder of an S corporation shall be considered to have paid a tax Credit and Tax Information Release No. 2023-03 (Amended), “Proposed
imposed on the shareholder in an amount equal to the shareholder’s pro Temporary Administrative Rules Relating to Pass-Through Entity Taxation
rata share of any net income tax paid by the S corporation to a state which as Enacted by Act 50, Session Laws of Hawaii 2023.”
does not measure the income of S corporation shareholders by the income
of the S corporation. The term “net income tax” means any tax imposed on Form N-20, Schedule K-1. Report each partner’s distributive share of
or measured by a corporation’s net income. the PTE tax credit on line 28 of Schedule K-1. If the partnership has credits
from more than one source such as another PTE, separately identify each
The S corporation will inform you of what your share of its income is, and amount in the “Other Information Provided by Partnership” section.
how much of it is long-term capital gains. The S corporation will also tell you
your share of the tax paid to the other state. Form N-35, Schedule K-1. Report each shareholder’s distributive
share of the PTE tax credit on line 16m of Schedule K-1.
Credit for Members’ Pro Rata Share of Taxes Paid by a Pass-Through
Entity (PTE) to Another State Form N-40, Schedule K-1. Report each beneficiary’s distributive share
of the PTE tax credit on line 9c of Schedule K-1.
A resident or part-year resident who is a member of a partnership or
S corporation may claim a nonrefundable credit for their pro rata share To claim this credit. Complete Form N-362 and Schedule CR and
of taxes paid by the partnership or S corporation to another state or the attach them to your return.
District of Columbia, provided the taxes paid to the other state or District of For Form N-40 filers, enter the fiduciary’s share of the credit on Schedule
Columbia result from a tax that is substantially similar to the tax imposed by CR, line 13.
Act 50, SLH 2023.
PART II — Lines 14 through 24
To claim this credit, you must attach the following to your return:
(1) A copy of the partnership’s or S corporation’s tax return filed in the Column (b) – Please enter the amount of the credit that will be applied
other state or District of Columbia; and to your remaining tax liability for this tax year.
(2) All available schedules showing the pro rata share of the taxes paid Column (c) – Please enter the amount of the unused credit that will
to the other state or District of Columbia. be carried over to subsequent years. This line must be completed if you
are carrying over any amount of unused tax credit whether or not you are
Line 12 – Enterprise Zone Tax Credit (Form N-756) applying any carryover amounts to your remaining tax liability for the tax
year.
A qualified enterprise zone business may claim a credit for a percentage
of net income tax due to the State attributable to the conduct of business Line 14 – Carryover of the Credit for Energy
within a zone and a percentage of the amount of unemployment insurance Conservation (Form N-323)
premiums paid based on the payroll of employees employed at the business
firm establishments in the zone. The applicable percentage is 80% the first Note: The credit for energy conservation expired on June 30, 2003. This
year; 70% the second year; 60% the third year; 50% the fourth year; 40% credit may be claimed only if you have a carryover of the tax credit from a
the fifth year; 30% the sixth year; and 20% the seventh year. For qualifying prior year. For new installations, see Form N-342.
businesses engaged in the manufacturing of tangible personal property or

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Instructions for Schedule CR (REV. 2023) Page 5
Each taxpayer who files an individual, corporate, fiduciary, or exempt the taxpayer’s income tax liability are not refunded but may be used as a
organization business income tax return and who has unused energy credit against the taxpayer’s income tax liability in subsequent years until
conservation tax credits from the prior year may claim a tax credit against exhausted.
its income tax liability. Tax credits that exceed the taxpayer’s income tax For more information, see Form N-323, Carryover of Tax Credits.
liability are not refunded but may be used as a credit against the taxpayer’s
income tax liability in subsequent years until exhausted. To claim the carryover of this credit. Complete Form N-323 and
Schedule CR and attach them to your return.
For more information, see Form N-323, Carryover of Tax Credits.
Note: To claim the unused credit to carryover to subsequent tax years,
To claim the carryover of this credit. Complete Form N-323 and Schedule CR, line 17 must be completed every tax year until the carryover
Schedule CR and attach them to your return. amount is exhausted. The unused carryover amount must be claimed,
Note: To claim the unused credit to carryover to subsequent tax years, whether or not you are applying any carryover amounts to your remaining
Schedule CR, line 14 must be completed every tax year until the carryover tax liability for the tax year, or the unused carryover amount will be forfeited.
amount is exhausted. The unused carryover amount must be claimed,
whether or not you are applying any carryover amounts to your remaining Line 18 – Carryover of the Hotel Construction and
tax liability for the tax year, or the unused carryover amount will be forfeited. Remodeling Tax Credit (Form N-323)
Line 15 – Carryover of the High Technology Business Note: The 10% nonrefundable hotel construction and remodeling tax
Investment Tax Credit (Form N-323) credit may not be claimed for qualified construction or renovation costs
incurred after June 30, 2003. This credit may be claimed only if you have a
Note: The high technology business investment tax credit is not carryover of the tax credit from a prior year.
available for investments made after December 31, 2010. You may claim Each taxpayer who files an individual, corporate, fiduciary, or exempt
the tax credit only if you have a carryover of the tax credit from a prior year. organization business income tax return and who has unused hotel
Each taxpayer who files an individual, corporate, fiduciary, or exempt construction and remodeling tax credits for qualified construction or
organization business income tax return and who has unused high renovation costs from the prior year may claim a tax credit against its income
technology business investment tax credits may claim a tax credit against tax liability. Tax credits that exceed the taxpayer’s income tax liability are not
its income tax liability. A tax credit which exceeds the taxpayer’s income tax refunded but may be used as a credit against the taxpayer’s income tax
liability may be used as a credit against the taxpayer’s income tax liability in liability in subsequent years until exhausted.
subsequent years until exhausted. For more information, see Form N-323, Carryover of Tax Credits, and
For more information, see Form N-323, Carryover of Tax Credits. Tax Information Release No. 2000-2, “Hotel Construction and Remodeling
To claim the carryover of this credit. Complete Form N-323 and Tax Credit.”
Schedule CR and attach them to your return. To claim the carryover of this credit. Complete Form N-323 and
Note: To claim the unused credit to carryover to subsequent tax years, Schedule CR and attach them to your return.
Schedule CR, line 15 must be completed every tax year until the carryover Note: To claim the unused credit to carryover to subsequent tax years,
amount is exhausted. The unused carryover amount must be claimed, Schedule CR, line 18 must be completed every tax year until the carryover
whether or not you are applying any carryover amounts to your remaining amount is exhausted. The unused carryover amount must be claimed,
tax liability for the tax year, or the unused carryover amount will be forfeited. whether or not you are applying any carryover amounts to your remaining
tax liability for the tax year, or the unused carryover amount will be forfeited.
Line 16 – Carryover of the Cesspool Upgrade,
Conversion or Connection Income Tax Credit (Form Line 19 – Carryover of the Residential Construction
N-323) and Remodeling Tax Credit (Form N-323)
Note: The cesspool upgrade, conversion, or connection tax credit is not Note: The residential construction and remodeling tax credit may not be
available for taxable years beginning after December 31, 2020. This credit claimed for construction or renovation costs incurred after June 30, 2003.
may be claimed only if you have a carryover of the tax credit from a prior This credit may be claimed only if you have a carryover of the tax credit
year. from a prior year.
Each taxpayer who files an individual, corporate, fiduciary, or exempt Each taxpayer who files an individual, corporate, fiduciary, or exempt
organization business income tax return and who has unused cesspool organization business income tax return and who has unused residential
upgrade, conversion, or connection income tax credits from the prior year construction and remodeling tax credits for qualified construction or
may claim a tax credit against its income tax liability. Tax credits that exceed renovation costs from the prior year may claim a tax credit against its income
the taxpayer’s income tax liability are not refunded but may be used as a tax liability. Tax credits that exceed the taxpayer’s income tax liability are not
credit against the taxpayer’s income tax liability in subsequent years until refunded but may be used as a credit against the taxpayer’s income tax
exhausted. liability in subsequent years until exhausted.
For more information, see Form N-323, Carryover of Tax Credits. For more information, see Form N-323, Carryover of Tax Credits,
and Tax Information Release No. 2002-3, “Residential Construction and
To claim the carryover of this credit. Complete Form N-323 and Remodeling Tax Credit.”
Schedule CR and attach them to your return.
Note: To claim the unused credit to carryover to subsequent tax years, To claim the carryover of this credit. Complete Form N-323 and
Schedule CR and attach them to your return.
Schedule CR, line 16 must be completed every tax year until the carryover
amount is exhausted. The unused carryover amount must be claimed, Note: To claim the unused credit to carryover to subsequent tax years,
whether or not you are applying any carryover amounts to your remaining Schedule CR, line 19 must be completed every tax year until the carryover
tax liability for the tax year, or the unused carryover amount will be forfeited. amount is exhausted. The unused carryover amount must be claimed,
whether or not you are applying any carryover amounts to your remaining
Line 17 – Carryover of the Technology Infrastructure tax liability for the tax year, or the unused carryover amount will be forfeited.
Renovation Tax Credit (Form N-323) Line 20 – Carryover of the Renewable Energy
Note: The technology infrastructure renovation tax credit is not available Technologies Income Tax Credit (For Systems Installed and
for taxable years beginning after December 31, 2010. This credit may be Placed in Service Before July 1, 2009) (Form N-323)
claimed only if you have a carryover of the tax credit from a prior year.
Each taxpayer who files an individual, corporate, fiduciary, or exempt Note: This credit may be claimed only if you have a carryover of the
organization business income tax return and who has unused technology renewable energy technologies income tax credit for systems installed and
infrastructure renovation tax credits from the prior year for renovation costs placed in service before July 1, 2009.
to provide a commercial building with technology enabled infrastructure Each taxpayer who files an individual, corporate, fiduciary, or exempt
may claim a tax credit against its income tax liability. Tax credits that exceed organization business income tax return and who has unused renewable

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Page 6 Instructions for Schedule CR (REV. 2023)
energy technologies income tax credits for systems installed and placed in liability are not refunded but may be used as a credit against the taxpayer’s
service before July 1, 2009, may claim a tax credit against its income tax income tax liability in subsequent years until exhausted.
liability. A tax credit which exceeds the taxpayer’s income tax liability may For more information, see Form N-348, Capital Infrastructure Tax Credit.
be used as a credit against the taxpayer’s income tax liability in subsequent
years until exhausted. To claim the carryover of this credit. Complete Form N-348 and
Schedule CR and attach them to your return.
For more information, See Form N-323, Carryover of Tax Credits.
Note: To claim the unused credit to carryover to subsequent tax years,
To claim the carryover of this credit. Complete Form N-323 and Schedule CR, line 23 must be completed every tax year until the
Schedule CR and attach them to your return. carryover amount is exhausted. The unused carryover amount must be
Note: To claim the unused credit to carryover to subsequent tax years, claimed, whether or not you are applying any carryover amounts to your
Schedule CR, line 20 must be completed every tax year until the carryover remaining tax liability for the tax year, or the unused carryover amount will
amount is exhausted. The unused carryover amount must be claimed, be forfeited.
whether or not you are applying any carryover amounts to your remaining
tax liability for the tax year, or the unused carryover amount will be forfeited. Line 24 – Carryover of the Earned Income Tax Credit
See the discussion for the Renewable Energy Technologies Income (Form N-356)
Tax Credit (For Systems Installed and Placed in Service on or After July 1, Note: The nonrefundable earned income tax credit is not available
2009), for the credit available for current system installations. for taxable years beginning after December 31, 2022. This credit may be
Line 21 – Carryover of the Organic Foods Production claimed only if you have a carryover of the tax credit from a prior year.
Tax Credit (Form N-323) Each taxpayer who files an individual income tax return and who has
unused earned income tax credits from the prior year may claim a tax
Note: The organic foods production tax credit is not available for taxable credit against its income tax liability. Tax credits that exceed the taxpayer’s
years beginning after December 31, 2021. This credit may be claimed only income tax liability are not refunded but may be used as a credit against
if you have a carryover of the tax credit from a prior year. the taxpayer’s income tax liability in subsequent years until exhausted,
Each taxpayer who files an individual, corporate, fiduciary, or exempt provide that no credit carried forward from tax years 2018, 2019, 2020, and
organization business income tax return and who has unused organic foods 2021 shall be used as a credit for taxable years beginning after December
production tax credits from the prior year may claim a tax credit against 31, 2024. For information on how to claim the refundable credit for taxable
its income tax liability. Tax credits that exceed the taxpayer’s income tax years beginning after December 31, 2022, see the instructions for Line 8,
liability are not refunded but may be used as a credit against the taxpayer’s “Earned Income Tax Credit (Form N-356)” on page 3.
income tax liability in subsequent years until exhausted. For more information, see Form N-356, Earned Income Tax Credit.
For more information, see Form N-323, Carryover of Tax Credits. To claim the carryover of this credit. Complete Form N-356 and
To claim the carryover of this credit. Complete Form N-323 and Schedule CR and attach them to your return.
Schedule CR and attach them to your return. Note: To claim the unused credit to carryover to subsequent tax years,
Note: To claim the unused credit to carryover to subsequent tax years, Schedule CR, line 24 must be completed every tax year until the carryover
Schedule CR, line 21 must be completed every tax year until the carryover amount has expired or is exhausted. The unused carryover amount must
amount is exhausted. The unused carryover amount must be claimed, be claimed, whether or not you are applying any carryover amounts to your
whether or not you are applying any carryover amounts to your remaining remaining tax liability for the tax year, or the unused carryover amount will
tax liability for the tax year, or the unused carryover amount will be forfeited. be forfeited.
Line 22 – Carryover of the Renewable Fuels Production PART II — Lines 25 through 31
Tax Credit (For Tax Years Beginning Before January 1, 2022) (Form Column (a) – Please enter the NEW credit amount you are CLAIMING
N-323) this tax year for the applicable tax credit. This line must be completed to
properly claim any new tax credits whether or not you are applying any of
Note: The renewable fuels production tax credit is not available for the new credit amount to your remaining tax liability for the tax year.
taxable years beginning after December 31, 2021. This credit may be
claimed only if you have a carryover of the tax credit from a prior year. Column (b) – Please enter the amount of the credit that will be applied
to your remaining tax liability for this tax year.
Each taxpayer who files an individual, corporate, fiduciary, or exempt
organization business income tax return and who has unused renewable Column (c) – Please enter the amount of the unused credit that will
fuels production tax credits for taxable years beginning before January be carried over to subsequent years. This line must be completed if you
1, 2022 from the prior year may claim a tax credit against its income tax are carrying over any amount of unused tax credit whether or not you are
liability. Tax credits that exceed the taxpayer’s income tax liability are not applying any carryover amounts to your remaining tax liability for the tax
refunded but may be used as a credit against the taxpayer’s income tax year.
liability in subsequent years until exhausted. Line 25 – Tax Credit for Low-Income Housing (Form
For more information, see Form N-323, Carryover of Tax Credits. N-586)
To claim the carryover of this credit. Complete Form N-323 and
Schedule CR and attach them to your return. Note: Do not confuse this credit with the credit for low-income household
renters.
Note: To claim the unused credit to carryover to subsequent tax years,
Schedule CR, line 22 must be completed every tax year until the carryover Hawaii’s low-income housing tax credit is equal to 50% of the federal
amount is exhausted. The unused carryover amount must be claimed, credit for qualified buildings located in the State of Hawaii. Owners of
whether or not you are applying any carryover amounts to your remaining qualified low-income buildings placed in service after December 31, 2011,
tax liability for the tax year, or the unused carryover amount will be forfeited. may receive a low-income housing tax credit loan instead of taking the
credit.
Line 23 – Carryover of the Capital Infrastructure Tax Contact the Hawaii Housing Finance and Development Corporation for
Credit (Form N-348) qualifying requirements and further information.
Note: The capital infrastructure tax credit is not available for taxable Form N-20, Schedule K-1. Report each partner’s distributive share of
years beginning after December 31, 2019. This credit may be claimed only the tax credit for low-income housing on line 19 of Schedule K-1. If the
if you have a carryover of the tax credit from a prior year. partnership has credits from more than one source such as another flow-
through entity, separately identify each amount in the “Other Information
Each taxpayer who files an individual, corporate, fiduciary, or exempt Provided by Partnership” section.
organization business income tax return and who has unused capital
infrastructure tax credits from the prior year may claim a tax credit against Form N-35, Schedule K-1. Report each shareholder’s distributive
its income tax liability. Tax credits that exceed the taxpayer’s income tax share of the tax credit for low-income housing on line 16d of Schedule K-1.

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Instructions for Schedule CR (REV. 2023) Page 7
Form N-40, Schedule K-1. Report each beneficiary’s distributive share liability may be used as a credit against the taxpayer’s income tax liability in
of the tax credit for low-income housing on line 7b of Schedule K-1. subsequent years until exhausted.
To claim this credit and any carryover amount. Complete Form For more information, see Form N-330, School Repair and Maintenance
N-586 and Schedule CR and attach them to your return. Tax Credit.
For Form N-40 filers, enter the fiduciary’s share of the credit on Schedule Form N-20, Schedule K-1. Report each partner’s distributive share of
CR, line 25. the credit for school repair and maintenance on line 22 of Schedule K-1. If
Note: To claim the unused credit to carryover to subsequent tax years, the partnership has credits from more than one source such as another flow-
Schedule CR, line 25 must be completed every tax year until the carryover through entity, separately identify each amount in the “Other Information
amount is exhausted. The unused carryover amount must be claimed, Provided by Partnership” section.
whether or not you are applying any carryover amounts to your remaining Form N-35, Schedule K-1. Report each shareholder’s distributive share
tax liability for the tax year, or the unused carryover amount will be forfeited. of the credit for school repair and maintenance on line 16g of Schedule K-1.
Deadline for claiming this credit. You cannot claim or amend the Form N-40, Schedule K-1. Report each beneficiary’s distributive share
credit after 12 months following the close of your taxable year. of the credit for school repair and maintenance on line 9c of Schedule K-1.
Line 26 – Credit for Employment of Vocational To claim this credit and any carryover amount. Complete Form
N-330 and Schedule CR and attach them to your return.
Rehabilitation Referrals (Form N-884)
For Form N-40 filers, enter the fiduciary’s share of the credit on Schedule
The amount of the tax credit for the taxable year is equal to 20% of the CR, line 27.
qualified first-year wages for that year. The amount of the qualified first-year To claim the unused credit to carryover to subsequent tax years,
wages which may be taken into account with respect to any individual shall Note:
not exceed $6,000. Schedule CR, line 27 must be completed every tax year until the carryover
amount is exhausted. The unused carryover amount must be claimed,
“Qualified wages” means the wages paid or incurred by the employer whether or not you are applying any carryover amounts to your remaining
during the taxable year to an individual who is a vocational rehabilitation tax liability for the tax year, or the unused carryover amount will be forfeited.
referral and more than one-half of the wages paid or incurred for such an You cannot claim or amend the
individual is for services performed in a trade or business of the employer. Deadline for claiming this credit.
credit after 12 months following the close of your taxable year.
“Qualified first-year wages” means, with respect to any vocational
rehabilitation referral, qualified wages attributable to service rendered Line 28 – Nonrefundable Renewable Energy
during the one-year period beginning with the day the individual begins Technologies Income Tax Credit (For Systems Installed and
work for the employer. Placed in Service on or After July 1, 2009) (Form N-342)
The credit allowed shall be claimed against net income tax liability for
the taxable year. A tax credit which exceeds the taxpayer’s income tax If you install and place in service an eligible renewable energy technology
liability may be used as a credit against the taxpayer’s income tax liability in system in Hawaii, you may qualify to claim this credit. You may claim the
subsequent years until exhausted. credit as nonrefundable or refundable. For information on how to claim
the credit as refundable, see the instructions for Refundable Renewable
For more information, see Form N-884, Credit for Employment of Energy Technologies Income Tax Credit on page 1. A nonrefundable credit
Vocational Rehabilitation Referrals. means your credit will be applied towards the amount of income tax you
Form N-20, Schedule K-1. Report each partner’s distributive share of owe. If your nonrefundable credit is greater than the amount of income tax
the credit for employment of vocational rehabilitation referrals on line 20 that you owe, then you may carryover the remaining credit and apply it
of Schedule K-1. If the partnership has credits from more than one source towards next year’s income tax. You may continue to carryover the credit
such as another flow-through entity, separately identify each amount in the until it is used up.
“Other Information Provided by Partnership” section. Total Output Capacity
Form N-35, Schedule K-1. Report each shareholder’s distributive A system classified under “other solar energy system” such as a
share of the credit for employment of vocational rehabilitation referrals on photovoltaic system must meet the total output capacity requirement to
line 16e of Schedule K-1. qualify for the credit unless an exception applies.
Form N-40, Schedule K-1. Report each beneficiary’s distributive share The total output capacity requirements are:
of the credit for employment of vocational rehabilitation referrals on line 9c Single-family residential property — 5 kilowatts per system
of Schedule K-1. •
To claim this credit and any carryover amount. Complete Form • Multi-family residential property — 0.360 kilowatts per unit per
system
N-884 and Schedule CR and attach them to your return. Commercial property — 1,000 kilowatts per system
•
For Form N-40, enter the fiduciary’s distributive share of the credit on For more information, see Form N-342 and its instructions, Tax
Schedule CR, line 26. Information Release No. 2010-10, “Common Income Tax & General Excise
Note: To claim the unused credit to carryover to subsequent tax years, Tax Issues Associated with the Renewable Energy Technologies Income
Schedule CR, line 26 must be completed every tax year until the carryover Tax Credit, HRS §235-12.5,” Tax Information Release No. 2022-02,
amount is exhausted. The unused carryover amount must be claimed, “Updated Guidance Relating to the Renewable Technologies Income Tax
whether or not you are applying any carryover amounts to your remaining Credit,” and Tax Facts 2022-2, “Renewable Energy Technology Income Tax
tax liability for the tax year, or the unused carryover amount will be forfeited. Credit - Photovoltaic Systems.”
Deadline for claiming this credit. You cannot claim or amend the Form N-20, Schedule K-1. Use Form N-342A to report each partner’s
credit after 12 months following the close of your taxable year. distributive share of the renewable energy technologies income tax credit
and attach it to the partner’s Schedule K-1. The partner’s distributive share
Line 27 – Credit for School Repair and Maintenance is reported on line 23 of Schedule K-1. Partners will use Form N-342 to
(Form N-330) claim their credit and need to attach a copy of their Form N-342A to their
Licensed contractors, pest control operators, and professional Hawaii net income tax return in order to receive the credit. If the partnership
engineers, architects, surveyors and landscape architects who are subject has credits from more than one source such as another flow-through entity,
to Hawaii’s income tax may claim an income tax credit for contributions of separately identify each amount in the “Other Information Provided by
in-kind services for the repair and maintenance of public schools. The credit Partnership” section.
shall be an amount equal to 10% of the value of the services contributed. Form N-35, Schedule K-1. Use Form N-342A to report each
Certain other limitations and restrictions apply. shareholder’s distributive share of the renewable energy technologies
The credit allowed shall be claimed against net income tax liability for income tax credit and attach it to the shareholder’s Schedule K-1. The
the taxable year. A tax credit which exceeds the taxpayer’s income tax shareholder’s distributive share is reported on line 16h of Schedule K-1.

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Page 8 Instructions for Schedule CR (REV. 2023)
Shareholders will use Form N-342 to claim their credit and need to attach Form N-35, Schedule K-1. Report each shareholder’s distributive share
a copy of their Form N-342A to Hawaii net income tax return in order to of the historic preservation income tax credit on line 16k of Schedule K-1.
receive the credit. Form N-40, Schedule K-1. Report each beneficiary’s distributive share
Form N-40, Schedule K-1. Use Form N-342A to report each beneficiary’s of the historic preservation income tax credit on line 9c of Schedule K-1.
distributive share of the renewable energy technologies income tax credit To claim this credit and any carryover amount. Complete Form
and attach it to the beneficiary’s Schedule K-1. The beneficiary’s distributive N-325 and Schedule CR and attach them to your return.
share is reported on line 9c of Schedule K-1. Beneficiaries will use Form
N-342 to claim their credit and need to attach a copy of their form N-342A to For Form N-40 filers, enter the fiduciary’s share of the credit on Schedule
their Hawaii net income tax return in order to receive the credit. CR, line 30.
To claim this credit and any carryover amount. Complete Form N-342 Note: To claim the unused credit to carryover to subsequent tax years,
and Schedule CR and attach them to your return. Fill in the appropriate oval Schedule CR, line 30 must be completed every tax year until the carryover
on Schedule CR to indicate the type of energy system. amount is exhausted. The unused carryover amount must be claimed,
whether or not you are applying any carryover amounts to your remaining
For Form N-40 filers, enter the fiduciary’s share of the credit on Schedule tax liability for the tax year, or the unused carryover amount will be forfeited.
CR, line 28.
Deadline for claiming this credit. You cannot claim or amend the
Note: To claim the unused credit to carryover to subsequent tax years, credit after 12 months following the close of your taxable year.
Schedule CR, line 28 must be completed every tax year until the carryover
amount is exhausted. The unused carryover amount must be claimed, Line 31 – Nonrefundable Renewable Fuels Production
whether or not you are applying any carryover amounts to your remaining Tax Credit (For Tax Years Beginning After December 31,
tax liability for the tax year, or the unused carryover amount will be forfeited. 2021) (Form N-360)
Deadline for claiming this credit. You cannot claim or amend the
credit after 12 months following the close of your taxable year. Act 216, SLH 2022, establishes a new renewable fuels production tax
credit for taxable years beginning after December 31, 2021. (1) The credit
Line 29 – Healthcare Preceptor Income Tax Credit is available for 10 consecutive years beginning with the first taxable year
(Form N-358) the taxpayer claiming the credit begins producing at least 2.5 billion British
thermal units (BTU) of renewable fuel per year; (2) the dollar amount of the
A qualifying individual taxpayer may claim a nonrefundable healthcare credit is 20 cents per 76,000 BTU of renewable fuels; (3) the Hawaii State
preceptor income tax credit equal to $1,000 for each volunteer-based Energy Office must certify all claims for the credit, which cannot exceed
supervised clinical training rotation supervised by the taxpayer, up to a $3,500,000 in any given year; and (4) allows the taxpayer to elect to have
maximum of $5,000 per taxable year, for taxable years beginning after the credit be refunded to them.
December 31, 2018.
Each taxpayer producing renewable fuels may claim a nonrefundable or
For more information, see Form N-358, Healthcare Preceptor Income refundable renewable fuels production tax credit for taxable years beginning
Tax Credit. after December 31, 2021. For information on how to claim the credit as
To claim this credit and any carryover amount. Complete Form refundable, see the instructions for line 7. A nonrefundable credit means
N-358 and Schedule CR and attach them to your return. your credit will be applied towards the amount of income tax you owe. If
Note: To claim the unused credit to carryover to subsequent tax years, your nonrefundable credit is greater than the amount of income tax that you
Schedule CR, line 29 must be completed every tax year until the carryover owe, then you may carryover the remaining credit and apply it towards next
amount is exhausted. The unused carryover amount must be claimed, year’s income. You may continue to carryover the credit until it is used up.
whether or not you are applying any carryover amounts to your remaining For more information, see Form N-360, Renewable Fuels Production
tax liability for the tax year, or the unused carryover amount will be forfeited. Tax Credit (For Tax Years Beginning After December 31, 2021).
Deadline for claiming this credit. You cannot claim or amend the Form N-20, Schedule K-1. Report each partner’s distributive share of
credit after 12 months following the close of your taxable year. the renewable fuels production tax credit on line 27 of Schedule K-1. If the
partnership has credits from more than one source such as another flow-
Line 30 – Historic Preservation Income Tax Credit through entity, separately identify each amount in the “Other Information
(Form N-325) Provided by Partnership” section.
Each qualified taxpayer that obtains a credit certificate issued by the Form N-35, Schedule K-1. Report each shareholder’s distributive share
Department of Land and Natural Resources may claim a nonrefundable of the renewable fuels production tax credit on line 16l of Schedule K-1.
historic preservation income tax credit, for taxable years beginning after Form N-40, Schedule K-1. Report each beneficiary’s distributive share
December 31, 2019, and before December 31, 2024. of the renewable fuels production tax credit on line 9c of Schedule K-1.
The tax credit is equal to the 30% of the qualified expenses of the To claim this credit and any carryover amount. Complete Form
qualified taxpayer, provided that the total amount of tax credits allowed N-360 and Schedule CR and attach them to your return.
under this section shall not exceed $1,000,000 for all qualified taxpayers For Form N-40 filers, enter the fiduciary’s share of the credit on Schedule
in any taxable year. CR, line 31.
For more information, see Form N-325, Historic Preservation Income Note: To claim the unused credit to carryover to subsequent tax years,
Tax Credit. Schedule CR, line 31 must be completed every tax year until the carryover
Form N-20, Schedule K-1. Report each partner’s distributive share of amount is exhausted. The unused carryover amount must be claimed,
the historic preservation income tax credit on line 26 of Schedule K-1. If the whether or not you are applying any carryover amounts to your remaining
partnership has credits from more than one source such as another flow- tax liability for the tax year, or the unused carryover amount will be forfeited.
through entity, separately identify each amount in the “Other Information Deadline for claiming this credit. You cannot claim or amend the
Provided by Partnership” section. credit after 12 months following the close of your taxable year.

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