Instructions For Form N-342c - Department Of Taxation State Of Hawaii

INSTRUCTIONS

STATE OF HAWAII—DEPARTMENT OF TAXATION

FORM N-342C

INSTRUCTIONS FOR FORM N-342C

(2012)

COMPOSITE INFORMATION STATEMENT FOR FORM N-342

(FOR 10 OR MORE SYSTEMS INSTALLED AND PLACED IN SERVICE BY AN ENTITY IN A SINGLE TAXABLE YEAR)

GENERAL INSTRUCTIONS

PURPOSE OF A COMPOSITE FORM N-342

A composite Form N-342 is used to claim the total tax credits attributable

(Note: If you are claiming the Ethanol Facility Tax Credit, no other credit

to the installation and placing in service 10 or more systems. Use composite

can be claimed for the same taxable year.)

Form N-342 to summarize and report the amounts from Form N-342C.

(Note: Failing to properly file and/or comply with the terms and conditions

Print the word “COMPOSITE” in capital letters at the top of Form N-342

for composite filing may result in the disallowance of all or part the

to designate it as a composite form. Add the amounts reported in the

tax credits and the revocation of the election to composite file.)

columns for each line in Part I of Form N-342C, and report the total on the

applicable line of the composite Form N-342. For example, if the amount

Each individual or corporate taxpayer may claim a renewable energy

technologies income tax credit (RETITC) for each renewable energy

in each column on line 1 of Form N-342C is $10,000 and there are 10

systems (i.e., 10 columns), then enter $100,000 ($10,000 x 10) on line 1 of

technology system (system) that is installed and placed in service in a

the composite Form N-342.

single taxable year as provided for under section 235-12.5, Hawaii Revised

Statutes (HRS).

PURPOSE OF FORM N-342C

In the case of a partnership, S corporation, estate, trust, or condominium

Form N-342C is used to calculate the tax credit for each system. Form

apartment association (entity), the cost upon which the tax credit is

N-342C is a detailed schedule of the information reported on a composite

computed shall be determined at the entity level. For taxable years that

Form N-342.

begin on or after January 1, 2011, an entity that has installed and placed in

service 10 or more systems in a single taxable year may elect to composite

PURPOSE OF A COMPOSITE FORM N-342A

file Forms N-342 and N-342A pertaining to the RETITC. The requirements

A composite Form N-342A is prepared by the entity and used to report

for composite filing are discussed in these instructions and in Department

a member’s total share of the tax credits. Use composite Form N-342A to

of Taxation Announcement No. 2012-01.

summarize and report the amounts from Form N-342B.

Print the word “COMPOSITE” in capital letters at the top of Form

FORMS REQUIRED TO BE FILED BY THE ENTITY

N-342A to designate it as a composite form. Add the amounts reported

Every entity that has installed and placed in service 10 or more

in the columns for each line in Part I of Form N-342B, and report the total

systems in a single taxable year and elects to composite file shall prepare

on the applicable line of the composite Form N-342A. For example, if the

and attach to its Hawaii income tax return the following forms:

amount in each column on line 1 of Form N-342B is $20,000 and there are

(1) Composite Form N-342;

10 systems (i.e., 10 columns), then enter $200,000 ($20,000 x 10) on line

(2) Form N-342C;

1 of the composite Form N-342A.

(3) Composite Form(s) N-342A;

(4) Form(s) N-342B

PURPOSE OF FORM N-342B

Attach the forms listed above along with all other required forms,

Form N-342B is prepared by the entity to report a member’s distributive

schedules, and attachments and submit the complete Hawaii income tax

share of the tax credit per system. Form N-342B is a detailed schedule of

return in the manner prescribed in the applicable Hawaii income tax return

the information reported on a composite Form N-342A.

instructions.

INFORMATION FOR MEMBERS

In addition, the entity must provide a composite Form N-342A and

A composite Form N-342A and Form N-342B received from an

Form N-342B to each partner, shareholder, member, and beneficiary

entity is used by the member to complete a composite Form N-342 and

(member), to report the member’s distributive share of the entity’s tax

Form N-342C so that the member may claim its share of the entity’s

credits attributable to the installation and placing in service 10 or more

RETITC. See the “Forms Required to Be Filed by the Taxpayer Claiming

systems in a single taxable year.

the RETITC” section in these instructions for more information.

FORMS REQUIRED TO BE FILED BY THE TAXPAYER CLAIMING THE

IRREVOCABLE CREDIT ELECTIONS

RETITC

A separate (refundable or nonrefundable) election must be made for

Every individual or corporate taxpayer who is eligible to claim the

each system (or distributive share of a system) that generates a RETITC.

RETITC for 10 or more systems/distributive shares of systems in a single

Once an election is made, it is irrevocable. A taxpayers electing both

taxable year and elects to composite file shall prepare and attach to its

refundable and nonrefundable RETITC must file 2 separate sets of forms

Hawaii income tax return the following forms:

(one set for the refundable RETITC and another set for the nonrefundable

(1) Composite Form N-342; and

RETITC). Each set shall contain the forms listed in the “Forms Required

(2) Form N-342C;

to Be Filed by the Taxpayer Claiming the RETITC” section of these

and attach the following forms provided by the entity:

instructions. (Note: Refundable tax credits must be computed before

(3) Composite or separate Form(s) N-342A;

nonrefundable tax credits.)

(4) Form(s) N-342B; and

SPECIFIC INSTRUCTIONS

(5) Any other forms/schedules required to claim the credit.

Attach the forms listed above along with all other required forms,

Each column on Form N-342C represents a separate system. Additional

schedules, and attachments and submit the complete Hawaii income tax

Forms N-342C may be used if there are more than 10 systems to report.

return in the manner prescribed in the applicable Hawaii income tax return

Step 1 — Enter the taxpayer’s name, social security number (SSN) or

instructions.

federal identification number (FEIN), and Hawaii tax identification number

All claims for the RETITC, including amended claims, must be filed on

in the designated spaces on the form.

or before the end of the twelfth month following the close of the taxable year

Property Number — Enter the property number that corresponds to

for which the credit may be claimed. Failure to comply with this subsection

physical property address listed in Part II where each system was installed

shall constitute a waiver of the right to claim the credit.

and placed in service.

In addition, the taxpayer must also submit a “soft” or electronic copy

of the composite Form(s) N-342 and Form(s) N-342 to the Department of

Type of System — Enter the type (solar water, other solar, or wind) of

Taxation (Department) in one of the following ways:

system that was installed and placed in service.

Date Installed & Placed in Service — Enter the date the system was

(1)

E-mail to: Tax.Directors.Office@hawaii.gov

installed and placed in service.

(2)

Mail or hand-delivery to:

Part I, lines 1 through 55 — Fill in the applicable lines. Each line in Part

I represents a corresponding line on a composite Form N-342. Use Form

Department of Taxation

Attention: Director’s Office

N-342 and its instructions to complete the applicable lines in Part I.

830 Punchbowl Street

Part II — Enter the physical address, city or town, and postal/ZIP code of the

Honolulu, HI 96813

real property where each system was installed and placed in service. In the

Property Number column, number each physical property address so that

Forms that are mailed or hand-delivered must be submitted on a digital

the number corresponds to property number listed for the systems in each

media storage source such as a CD-R or DVD-R. (Note: Digital media

column in Part I. If additional space is needed, attach a continuation sheet.

storage sources will not be returned by the Department.)

Instructions For Form N-342c - Department Of Taxation State Of Hawaii - 2012

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