Instructions For Form N-342 - Renewable Energy Technologies Income Tax Credit Page 2
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Instructions for Form N-342 (REV. 2016)
CALCULATION — ALLOCATION OF TOTAL COST FOR
be filed to change the tax credit from refundable to nonrefundable. A
taxpayer and spouse who do not file a joint tax return shall only be entitled
OTHER SOLAR ENERGY SYSTEMS
to make this election to the extent that they would have been entitled to
make the election had they filed a joint return.
Listed below is the calculation to determine the total output capacity and
the allocation of the total cost per system where more than one system
For more information, see Tax Information Release No. 2010-10, “Common
is installed and placed in service on a single property in the taxable year.
Income Tax & General Excise Tax Issues Associated with the Renewable
Energy Technologies Income Tax Credit, HRS §235-12.5.”
Line
Description
Amount
TOTAL OUTPUT CAPACITY
Total Output Capacity
A
Maximum power of each cell, module,
A system classified under “other solar energy system,” such as a PV
or panel
__________ kilowatts
system, must meet the total output capacity requirement for the credit
unless an exception applies. The total output capacity of the system
B
Total number of cells, modules, or
determines how many credits you can claim.
panels installed and placed in service
__________ cells,
The total output capacity requirements are:
during the taxable year
modules, or panels
(1) Single-family residential property - 5 kilowatts per system
(2) Multi-family residential property - 0.360 kilowatts per unit per system
C
Total output capacity
(3) Commercial property - 1,000 kilowatts per system
(Multiply line A by line B)
__________ kilowatts
0.00
For PV systems, total output capacity is the maximum power of the cell,
D
Total cost of all installations during
module, or panel at Standard Test Conditions in kilowatts multiplied by the
number of cells, modules, or panels installed and placed in service during
the taxable year
$ ______________
the taxable year. The maximum power of the cell, module, or panel must be
provided and published by the manufacturer of the cell, module, or panel.
E
Cost per kilowatt
A credit may be claimed for a system that does not meet the total output
(Divide line D by line C)
$ ______________
capacity requirements if it qualifies for one of the following exceptions:
Total Cost Per System
•
Only One Credit Being Claimed - If a system that does not meet the total
F1
Total cost to be allocated to System 1
F1
output capacity requirement is installed and placed in service on one
property during the tax year, then the taxpayer may claim one credit.
(Multiply line E by line F1-kW)
$ ______________
0.00
Example: Taxpayer installs a PV system with a total output capacity of
F1-kW
Enter this amount on
4.0 kilowatts on his house (single-family residential property).
Total output capacity
1st Form N-342,
Even though the system does not meet the total output capacity
requirement of 5.0 kilowatts, the taxpayer may claim one credit.
of System 1 = __________ kilowatts
line 1
•
Only One System Does Not Meet the Requirement - If more than one
F2
Total cost to be allocated to System 2
F2
system is installed and placed in service during the tax year and one
of the systems fails to meet the total output capacity requirement, then
(Multiply line E by line F2-kW)
$ ______________
0.00
the taxpayer may still claim one credit for each system including a
F2-kW
Enter this amount on
credit for the one system that does not meet the total output capacity
requirement.
Total output capacity
2nd Form N-342,
Example: Taxpayer installs a PV system with a total output capacity of
of System 2 = __________ kilowatts
line 1
8.5 kilowatts on his home (single-family residential property). The
taxpayer may claim 2 credits. The first system is 5.0 kilowatts, the
F3
F3
Total cost to be allocated to System 3
second system is 3.5 kilowatts, and the cost would be allocated
(Multiply line E by line F3-kW)
$ ______________
0.00
accordingly. The cost of the system cannot be split evenly.
F3-kW
Enter this amount on
Total output capacity
3rd Form N-342,
of System 3 = __________ kilowatts
line 1
F4
Total cost to be allocated to System 4
F4
(Multiply line E by line F4-kW)
$ ______________
0.00
F4-kW
Enter this amount on
Total output capacity
4th Form N-342,
of System 4 = __________ kilowatts
line 1
Note: Additional lines should be added here as needed where more
than four systems have been installed and placed in service
during the taxable year on a single property.
G
Sum of lines F1 through F4
Line G must equal line D. The sum of
the total output capacities allocated to
$ ______________
0.00
each system must equal to line C.
H
Add lines F1-kW to F4-kW
(Sum of total output capacities
allocated to each system.)
__________ kilowatts
0.00
Line H must equal line C.
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