Fillable Form N-163 - Fuel Tax Credit (Page 2 of 2) in pdf

FORM N-163

(REV. 2016)

PAGE 2

CHANGES TO NOTE

(1) Form N-163

(2) Schedule CR (for Form N-11, N-15, N-30, and N-70-NP filers)

Maui County Resolution No. 16-79 increases the County

of Maui liquid fuel tax from $0.18 per gallon to $0.23 per gallon

(3) Schedule K-1 (Required only if you are claiming a distributive

effective July 1, 2016.

share of a credit from a partnership, S corporation, estate, or

GENERAL INSTRUCTIONS

trust)

Flow-Through Entities

Note: Effective December 2, 2013, Hawaii recognizes same-

sex marriages. Therefore, all same-sex couples that are legally

If you are a partnership, S corporation, estate, or trust that is

married in Hawaii or any other jurisdiction where such marriages

allocating this credit to your partners, shareholders, or beneficiaries,

are valid are married for all tax purposes.

complete Form N-163 and attach it to your Hawaii income tax

Note: Effective January 1, 2012, civil unions are recognized in

return. Then enter the total fuel tax credit for commercial fishers

on the applicable line of your Hawaii income tax return (see the

Hawaii. Hawaii’s laws that apply to a husband and wife, spouses,

instructions for line 5). Prepare and provide Schedule K-1 reporting

or person in a legal marital relationship shall be deemed to apply

the distributive share of the fuel tax credit for commercial fishers for

to partners in a civil union with the same force and effect as if they

each partner, shareholder, or beneficiary.

were “husband and wife,” “spouses,” or other terms that describe

persons in a legal marital relationship.

Deadline for Claiming the Credit

A principal operator of a commercial fishing vessel who files an

The deadline to claim the credit, including amended claims, is

income tax return for the taxable year may be eligible for the fuel tax

12 months after the close of your taxable year. You cannot claim or

credit for commercial fishers.

amend the credit after the deadline.

The amount of the credit is limited to the fuel taxes imposed

SPECIFIC INSTRUCTIONS

under section 243-4(a), Hawaii Revised Statutes (HRS), and paid

PART I — COMPUTATION OF TAX CREDIT FOR COMMERCIAL

by the principal operator for use in the operation of the fishing

FISHERS

vessel during the indicated taxable year.

Line 4. Flow through of tax credit received from other entities,

A taxpayer and spouse filing separate returns, where a joint

return could have been filed, shall claim only the credit to which the

if any. In the case of a taxpayer who is a member of a flow-through

taxpayer and spouse would have been entitled had a joint return

entity (i.e., S corporation, partnership, estate, or trust), enter the

been filed.

amount of the tax credit received from the entity on line 4. Attach a

copy of the applicable Schedule K-1 to Form N-163 when the tax

If the properly claimed and allowed credit exceeds the amount

credit is claimed.

of the income tax due and payable from the principal operator, the

excess will be refunded to the principal operator.

Line 5. Form N-11, N-15, N-30, and N-70NP filers, enter the

amount on line 5 on Schedule CR, line 18 (rounded to the nearest

Purpose of Form

dollar).

Use Form N-163 to figure and claim the fuel tax credit for

Form N-40 filers, enter the amount on line 5 that is allocated

commercial fishers under sections 235-110.6, HRS, and 18-235-

to the estate or trust on Form N-40, Schedule F, line 1. Enter the

110.6, Hawaii Administrative Rules.

amount on line 5 that is allocated to the beneficiary on line 9 of

Who May Claim This Credit

Schedule K-1, Form N-40, for each beneficiary.

This credit may be claimed by a principal operator of a

Form N-35 filers, enter the amount on line 5 on Schedule K,

commercial fishing vessel who purchases and actually uses the

line 16a.

fuel to operate a fishing vessel for commercial purposes.

Form N-20 filers, enter the amount on line 5 on Schedule K,

When the Credit May Not Be Claimed

line 17.

This credit may not be claimed if any of the following apply:

PART II — WORKSHEET FOR GASOLINE PURCHASED AND

USED BY PRINCIPAL OPERATOR

(1) You are claiming the Ethanol Facility Tax Credit for the same

tax year.

Line 2, Column B. The County of Maui fuel tax per gallon of

liquid fuel is as follows:

(2) You use the fuel in the operation of charter fishing boats and

the like where the income is derived from fees and sources

$0.330 per gallon from July 1, 2007 through June 30, 2015

other than from commercial fishing.

$0.350 per gallon from July 1, 2015 through December 31, 2015

(3) You use the fuel in the operation of a fishing vessel where

$0.340 per gallon from January 1, 2016 through June 30, 2016

the activity is not engaged in for profit as provided in Internal

Revenue Code section 183.

$0.390 per gallon from July 1, 2016

(4) You use alternative fuels. However, you may obtain a refund

If your tax credit will be calculated using two different tax rates,

of the fuel taxes paid by filing Form M-36, Combined Claim for

attach a separate schedule showing the calculation. Leave lines 1

Refund of Fuel Taxes.

and 2 of Column B blank, and enter the total amount of the credit

on line 3, Column B.

Credit Requirements

To claim this credit, you must complete and attach to your

Hawaii income tax return:

FORM N-163

Form N-163 - Fuel Tax Credit Page 2

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