Instructions For Form N-342 - Renewable Energy Technologies Income Tax Credit (Page 3 of 4) in pdf

Instructions for Form N-342 (REV. 2016)

Page 3

TAX CREDIT RATES

residential installation fails to pass all the required inspections the credit

is properly claimed in the taxable year in which the system passes such

The tax credit may be claimed for the following renewable energy technology

inspection.

systems installed and placed in service in Hawaii on or after July 1, 2009:

SPECIFIC INSTRUCTIONS

Type of Renewable

Tax Credit

Note: If you are claiming a carryover credit(s), skip lines 1 through 47 and

Energy Technology System

Rate

begin on line 48.

Solar energy systems - Primary purpose is to use energy from

Note: Form N-20 and Form N-35 filers complete only lines 1 through 41

the sun to heat water for household use

(Do Not complete lines 42 through 55).

a. Single-family residential

The lesser of 35% of the actual

For eligible systems installed and placed in service in the taxable

property.

cost of the system or $2,250.

year, be sure to enter in the appropriate space (1) the physical property

address where the system was installed and placed in service (enter

“CARRYOVER” if claiming carryover credit(s)), (2) the date the system was

b. Multi-family residential

Per building unit:

installed and placed in service (leave blank if claiming carryover credit(s)),

property.

The lesser of 35% of each unit’s

and (3) the Total Output Capacity if the credit being claimed is for an “other

actual cost of the system

solar energy system” (leave blank if claiming carryover credit(s)). See the

or $350.

General Instructions for more information on “Total Output Capacity.”

c. Commercial property.

The lesser of 35% of the actual

Lines 1 through 41 — Fill in the lines as they apply to your claim.

cost of the system or $250,000.

Lines 1 or 27 –– Enter the qualifying cost of the eligible renewable energy

technology system installed and placed in service in Hawaii. Do not claim

Solar energy systems - All other solar energy systems

more than your share of the costs if there are multiple owners of the eligible

a. Single-family residential

The lesser of 35% of the actual

renewable energy technology system.

property.

cost of the system or $5,000.

Lines 2 or 28 –– Enter the dollar amount of any consumer incentive

premiums unrelated to the operation of the system or offered with the

b. Multi-family residential

Per building unit:

sale of the system (such as “free solar powered products,” “free gifts,”

property.

The lesser of 35% of each unit’s

offers to pay electricity bills, or rebates), costs for which another credit is

actual cost of the system

claimed, and any utility rebate received for the qualifying renewable energy

or $350.

technology system.

c. Commercial property.

The lesser of 35% of the actual

The dollar amount of any consumer incentive premiums, costs for which

cost of the system or $500,000.

another credit is claimed, and any utility rebate received are to be deducted

from the cost of the qualifying system before determining the credit.

Lines 8, 20, and 33 –– The per unit cost of a solar or wind-powered energy

system installed and placed in service in Hawaii in a multi-family residential

Wind-powered energy systems

property may be determined as follows:

a. Single-family residential

The lesser of 20% of the actual

Total square feet of your unit

property.

cost of the system or $1,500.

Total square feet of all units

x The actual cost

b. Multi-family residential

Per building unit:

in the multi-family

of the system

property.

The lesser of 20% of each unit’s

residential property

actual cost of the system

or $200.

If the above per unit cost calculation does not fairly represent the owners’

contribution to the cost of the system, provide an alternative calculation.

c. Commercial property.

The lesser of 20% of the actual

Line 42 — Make the election to treat the tax credit as refundable or

cost of the system or $500,000.

nonrefundable by checking the appropriate box. Once an election is

made to treat the tax credit as refundable, the election cannot be

DEFINITIONS

revoked or amended.

Lines 43 through 47 — If you are claiming the credit as refundable,

FOR PURPOSES OF THE TAX CREDIT

complete lines 43 through 47 as they apply to your claim.

“Actual cost” means costs related to the renewable energy technology

Lines 48 through 55 — If you are claiming the credit as nonrefundable,

systems provided by section 235-12.5(a), HRS, including accessories and

complete lines 48 through 55 as they apply to your claim

installation, but not including the cost of consumer incentive premiums

unrelated to the operation of the system or offered with the sale of the

Line 48 — If you have unused renewable energy technologies income

system and costs for which another credit is claimed under Chapter 235,

tax credit(s) (for one or more systems installed and placed in service

HRS.

on or after July 1, 2009) to carry over from the prior year, enter the total

carryover amount on this line. If you have carryover credit(s) and are also

“Household use” means any use to which heated water is commonly

claiming a credit for an eligible system installed and placed in service in

put in a residential setting, including commercial application of those uses.

the taxable year, complete one Form N-342 for the carryover credit(s) and

“Renewable energy technology system” means a new system that

then a separate Form N-342 for each eligible system installed and placed

captures and converts a renewable source of energy, such as solar or wind

in service for that taxable year.

energy into:

Line 49 — Enter the amount from line 14, 26, 39, 40, or 41.

(1) A usable source of thermal or mechanical energy;

Line 51 — Enter the amount from the appropriate line of your tax return.

(2) Electricity; or

Line 52 — The law requires that ALL other credits offset a taxpayer’s tax

(3) Fuel.

liability BEFORE allowing a renewable energy technologies income tax

credit. Complete the Credit Worksheet in these instructions and enter the

“Solar or wind energy system” means any identifiable facility, equipment,

result on line 52. If you are claiming the nonrefundable renewable energy

apparatus, or the like that converts solar or wind energy to useful thermal

technologies income tax credit for multiple systems, enter on line h of the

or electrical energy for heating, cooling, or reducing the use of other types

worksheet the amount of tax credit that is being claimed on line 54 of other

of energy that are dependent upon fossil fuel for their generation.

Form(s) N-342 that you have already completed for the taxable year.

“Installed and placed in service” means that the system is ready and

Line 54 — Enter the smaller of line 50 or 53 here. This is your maximum

available for its specific use. With respect to systems installed for residential

credit allowed for this taxable year.

property, all requirements will be completed and a system will be deemed

to be installed and placed in service when: (1) The actual cost has been

Line 55 — Tax credits which exceed the taxpayer’s net income tax liability

incurred; (2) all installation, including all related electrical work, has been

may be used as a credit against the taxpayer’s net income tax liability in

completed; and (3) any required requests for inspection of the installation

subsequent years until exhausted.

has been received by the appropriate government agency. However, if the

Instructions For Form N-342 - Renewable Energy Technologies Income Tax Credit Page 3

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