Instructions For Form N-318 - Hawaii Department Of Taxation - 1999
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1payer, no repayment except for dividends or inter-
companies, attach a schedule to Form N-318.
Form N-318
est shall be made for at least three years from the
Instructions
Line 2.—Enter the total amount of the investment made
date the investment is made.
in the QHTB listed in the same column. Do not enter
(1999)
The annual amount of any dividend and inter-
any amounts from investments made before July 1,
General Instructions for Part I
est payment to the taxpayer shall not exceed
1999.
Purpose of Form. Act 178, Session Laws of
twelve per cent of the amount of the investment.
Line 3.—Multiply the amount on line 2, column a, by
Hawaii 1999, created tax credits to assist in the
(b) For the purposes of this section:
10% (0.1) and enter the result on line 3, column a. Cal-
creation of opportunities for high technology com-
culate each column the same way. These are the total
“Qualified high technology business” means:
panies. Use this form to calculate the allowed
maximum credits allowed per QHTB per tax year.
high-technology tax credits. Part I is used to claim
(1) A business, employing or owning capital
Line 4.—Add line 3, column(s) a through c and any ad-
the High-Technology Business Investment Tax
or property, or maintaining an office, in
ditional maximum credit allowed per QHTB from an at-
Credit created under the Income Tax Law. The
this State; and which
tached schedule. Enter the total here.
Franchise and Insurance Premium Tax Laws also
(2) (A) Conducts one hundred per cent of
provide those companies filing under those tax
Line 5.—Enter the name and federal employer identifi-
its activities in performing qualified
laws to also claim the tax credit.
cation number of any flow-through entity who has
research in this State; or
passed the high-technology business investment tax
For more information, contact the Department
(B) Receives one hundred per cent of
credit through to the taxpayer. If additional space is
of Taxation, Technical Section at (808) 587-1577.
its gross income derived from quali-
needed, include the information on an attached sched-
Statutory Reference. § 235-( uncodified) ,
fied research; provided that the in-
ule.
Hawaii Revised Statutes (HRS).
come is received from products sold
Line 6.—For 1999, this space is reserved for the carry-
from, manufactured, or produced in
High-technology business investment tax
over of unused high technology business investment
the State; or services performed in
credit. (a) There shall be allowed to each tax-
tax credits from prior years.
this State.
payer, subject to the taxes imposed by this chap-
Line 7.—Add lines 5 and 6. This is your tentative cur-
ter, a high technology investment tax credit that
The term “ qualified high technology business ”
rent year high-technology business investment tax
shall be deductible from the taxpayer’s net income
does not include:
credit. Form N-20, N-35 and 314 filers, stop here and
tax liability, if any, imposed by this chapter for the
(1) Any trade or business involving the per-
enter the amount on line 7 on the appropriate lines of
taxable year in which the credit is properly
formance of services in the field of law,
your tax return. All others, continue to line 8.
claimed. The tax credit shall be an amount equal
architecture, accounting, actuarial sci-
to ten per cent of the investment made by the tax-
Tax Liability Limitations
ence, performing arts, consulting, athlet-
payer in each qualified high technology business,
ics, financial services, or brokerage
NOTE: If you are also claiming the Low-Income
up to a maximum allowed credit of $500,000 for
services;
Housing Tax Credit (Form N-586), complete Form N-586
the taxable year for the investment made by the
before completing this form. If you have any carryover of
(2) Any banking, insurance, financing, leas-
taxpayer in a qualified high technology business.
unused credit from Form N-586, do not complete lines 8
ing, rental, investing, or similar business;
(b) The credit allowed under this section shall
and 9 of this form. Enter zero on line 10 and continue to
any farming business, including the busi-
be claimed against the net income tax liabil-
line 12. Your total high-technology business investment
ness of raising or harvesting trees; any
ity for the taxable year. For the purpose of
tax credit cannot be used this year and must be carried
business involving the production or ex-
this section, “net income tax liability” means
over to next year.
traction of products of a character with
net income tax liability reduced by all other
respect to which a deduction is allow-
Line 8.—Enter the tax liability before any credits from
credits allowed under this chapter.
able under section 611 (with respect to
the appropriate line of your tax return.
(c) If the tax credit under this section exceeds
allowance of deduction for depletion),
Line 9.—The law requires that ALL other credits offset
the taxpayer’s income tax liability, the excess
613 (with respect to basis for percentage
a taxpayer's tax liability BEFORE allowing a credit for
of the tax credit over liability may be used as
depletion), or 613A (with respect to limi-
investment in a qualified high technology business.
a credit against the taxpayer’s income tax li-
tation on percentage depleting in cases
Complete this worksheet and enter the result on line 9.
ability in subsequent years until exhausted.
of oil and gas wells) of the Internal Rev-
enue Code;
Tax Credit
Amount
All claims, including any amended claims, for
tax credits under this section shall be filed on or
(3) Any business operating a hotel, motel,
a. Income Taxes Paid to another
before the end of the twelfth month following the
restaurant, or similar business; and
state or foreign country · · · · · ·
close of the taxable year for which the credit may
(4) Any trade or business involving a hospi-
b. Energy Conservation Tax
be claimed.
Credit· · · · · · · · · · · · · · · · · · · ·
tal, a private office of a licensed health
Failure to comply with the foregoing provision
care professional, a group practice of li-
c.
Enterprise Zone Tax Credit · · ·
shall constitute a waiver of the right to claim the
censed health care professionals, or a
d. Low-Income Housing Tax
credit.
nursing home.
Credit· · · · · · · · · · · · · · · · · · · ·
(d) As used in this section:
“ Qualified research ” means:
e. Credit for Employment of
Vocational Rehabilitation
“Computer software” means a set of computer
(1) The same as in section 41(d) of the In-
Referrals · · · · · · · · · · · · · · · · ·
programs, procedures, or associated documenta-
ternal Revenue Code; or
f.
Low-Income Refundable Tax
tion concerned with the operation and function of
(2) Developing, designing, modifying, pro-
Credit· · · · · · · · · · · · · · · · · · · ·
a computer system, and includes both systems
gramming, and licensing computer
g. Credit for Low-Income
and application programs and subdivisions, such
software;
Household Renters · · · · · · · · ·
as assemblers, compilers, routines, generators,
except that it shall not include research conduct-
h. Credit for Child and Dependent
and utility programs.
Care Expenses · · · · · · · · · · · ·
ed outside the State.
“Investment” means a nonrefundable invest-
I.
Credit for Child Passenger
(e) This section shall not apply to taxable years
ment, at risk, as that term is used in section 465
Restraint Systems · · · · · · · · · ·
beginning after December 31, 2005.
(with respect to deductions limited to amount at
j.
Capital Goods Excise Tax
risk) of the Internal Revenue Code, in a qualified
Specific Instructions
Credit· · · · · · · · · · · · · · · · · · · ·
high technology business, of cash that is trans-
For Part I
k.
Fuel Tax Credit for Commercial
ferred to the qualified high technology business,
Fishers· · · · · · · · · · · · · · · · · · ·
the transfer of which is in connection with a trans-
Partnerships, S Corporations, Franchise
l.
Motion Picture and Film
action in exchange for stock, interests in partner-
tax filers, Estates and Trusts.—Complete lines
Production Income Tax
ships, joint ventures, or other entities, licenses
1 through 7 to figure the credit to pass through to
Credit· · · · · · · · · · · · · · · · · · · ·
(exclusive or nonexclusive), rights to use technol-
the partners, shareholders, or beneficiaries. Do
m. Credit from a regulated
ogy, marketing rights, warrants, options, or any
not complete lines 8 through 12.
investment company · · · · · · · ·
items similar to those included herein, including
Insurers.—Complete lines 1 through 7 to fig-
n. Add lines a through m. Enter
but not limited to options or rights to acquire any
ure the credit to carry to Form 314, Annual Pre-
the amount here and on
of the items included herein.
line 9 · · · · · · · · · · · · · · · · · · · ·
mium Tax Return. Do not complete lines 8
The nonrefundable investment is entirely at
through 12.
risk of loss where repayment depends upon the
Line 1.—In each column, enter the name and
Line 11.—Compare the amounts on lines 7 and 10.
success of the qualified high technology business.
address of the qualified high-technology busi-
Enter the smaller of line 7 or 10 here. This is your max-
If the money invested is to be repaid to the tax-
ness (QHTB) invested in. If more than 3
imum credit allowed for this taxable year.
FORM N-318
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