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INSTRUCTIONS STATE OF HAWAII—DEPARTMENT OF TAXATION
FORM N-334
(REV. 2009) INSTRUCTIONS FOR FORM N-334
RENEWABLE ENERGY TECHNOLOGIES INCOME TAX CREDIT
(FOR SYSTEMS INSTALLED AND PLACED IN SERVICE BEFORE JULY 1, 2009)
3. Photovoltaic energy systems
CHANGES YOU SHOULD NOTE a. Single-family residential The lesser of 35% of the actual
property cost of the system or $5,000.
Act 151, Session Laws of Hawaii 2007, made the following changes to the
provisions of the renewable energy technologies income tax credit: b. Multi-family residential Per building unit:
For taxable years beginning after December 31, 2006: property The lesser of 35% of each unit’s
actual cost of the system
• All energy technology systems must be installed and placed in service or $350.
in the State of Hawaii to obtain the credit.
c. Commercial property The lesser of 35% of the actual
• Nonresident taxpayers can now claim the credit. cost of the system or $500,000.
GENERAL INSTRUCTIONS
Note: For systems installed and placed in service on or after July 1, 2009, DEFINITIONS
use Form N-342. FOR PURPOSES OF THE TAX CREDIT
Note: If you are claiming the Ethanol Facility Tax Credit, no other credit can “Actual cost” means costs related to the renewable energy technology
be claimed for the same taxable year.
systems provided by section 235-12.5(a), HRS, including accessories and
REQUIREMENTS FOR CLAIMING TAX CREDIT installation, but not including the cost of consumer incentive premiums
Each individual or corporate taxpayer may claim a tax credit against unrelated to the operation of the system or offered with the sale of the
the Hawaii net income tax or franchise tax liability for an eligible renewable system and costs for which another credit is claimed under Chapter 235,
energy technology system installed and placed in service in Hawaii. The tax HRS.
credit shall apply only to the actual cost of the solar thermal, wind-powered, “Renewable energy technology system” means a system that captures
or photovoltaic energy system, including their accessories and installation, and converts a renewable source of energy, such as wind, heat (solar
and shall not include the cost of consumer incentive premiums unrelated thermal), or light (photovoltaic) from the sun into:
to the operation of the system or offered with the sale of the system (such
as “free gifts”, offers to pay electricity bills, or rebates) and costs for which (1) A usable source of thermal or mechanical energy;
another credit is claimed. For taxable years beginning after December 31, (2) Electricity; or
2005, the dollar amount of any utility rebate shall be deducted from the cost
of the qualifying system and its installation before determining the State (3) Fuel.
credit. Tax credits that exceed your income tax liability are not refunded “Solar or wind energy system” means any identifiable facility, equipment,
but may be used as a credit against your income tax liability in subsequent apparatus, or the like that converts insolation or wind energy to useful
years until exhausted. All claims for credit, including any amended thermal or electrical energy for heating, cooling, or reducing the use of other
claims, must be filed on or before the twelfth month following the types of energy that are dependent upon fossil fuel for their generation.
close of the taxable year for which the credit may be claimed.
Multiple owners of a single renewable energy technology system shall SPECIFIC INSTRUCTIONS
be entitled to a single tax credit. Further, the tax credit shall be apportioned Note: Multiple owners of a single system are entitled to a single tax credit.
between the owners in proportion to their contribution to the cost of This means that if two people purchased and installed an eligible
the system. The tax credit may be claimed for the following renewable renewable energy technology system in Hawaii and they jointly
energy technology systems installed and placed in service in Hawaii: incur $6,000 in costs for the system, the total credit claimed by
the two people cannot exceed $2,250 for a solar thermal energy
Type of Renewable Tax Credit system, $1,500 for a wind-powered energy system, or $5,000 for a
Energy Technology System Rate photovoltaic energy system.
1. Solar thermal energy systems Be sure to enter the date each system was installed and placed in service
a. Single-family residential The lesser of 35% of the actual in the appropriate space.
property cost of the system or $2,250. Lines 1 through 47 — Fill in the lines as they apply to your claim.
b. Multi-family residential Per building unit: Lines 1, 11, 16, 26, 31, and 41 –– Enter the qualifying cost of the eligible
property The lesser of 35% of each unit’s renewable energy technology system installed and placed in service in
actual cost of the system Hawaii. Do not include that portion of the costs for consumer incentive
or $350. premiums unrelated to the operation of the system or offered with the sale
of the system (such as “free gifts”, offers to pay electricity bills, or rebates).
c. Commercial property The lesser of 35% of the actual Do not include that portion of the costs for which another tax credit was
cost of the system or $250,000. claimed under Hawaii’s income tax law for the taxable year. Do not claim
more than your share of the costs if there are multiple owners of the eligible
2. Wind-powered energy systems renewable energy technology system.
a. Single-family residential The lesser of 20% of the actual Lines 5, 20, and 35 — The per unit cost of a solar thermal, wind-powered,
property cost of the system or $1,500. or photovoltaic energy system installed and placed in service in Hawaii in a
multi-family residential property may be determined as follows:
b. Multi-family residential Per building unit: Total square feet of your unit
property The lesser of 20% of each unit’s
actual cost of the system Total square feet of all units x The actual cost
or $200. in the multi-family of the system
c. Commercial property The lesser of 20% of the actual residential property
cost of the system or $500,000. If the above per unit cost calculation, does not fairly represent the owners’
contribution to the cost of the system, provide alternative calculation.
(Continued on back)
State tax forms and information are available on the Internet at: INSTRUCTIONS
www.hawaii.gov/tax FORM N-334
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