Hawaii Renewable Energy Tax Credit Form N-342 and Cash Credit form Schedule CR
Each individual or corporate taxpayer may claim a tax credit against the Hawaii net income tax or franchise tax liability for an eligible renewable energy technology system installed and placed in service in Hawaii. The tax credit shall apply only to the actual cost of the solar thermal, wind-powered, or photovoltaic energy system, including their accessories and installation, and shall not include the cost of consumer incentive premiums unrelated to the operation of the system or offered with the sale of the system (such as “free gifts”, offers to pay electricity bills, or rebates) and costs for which another credit is claimed. For taxable years beginning after December 31, 2005, the dollar amount of any utility rebate shall be deducted from the cost of the qualifying system and its installation before determining the State credit. Tax credits that exceed your income tax liability are not refunded but may be used as a credit against your income tax liability in subsequent years until exhausted. All claims for credit, including any amended claims, must be filed on or before the twelfth month following the close of the taxable year for which the credit may be claimed. Multiple owners of a single renewable energy technology system shall be entitled to a single tax credit. Further, the tax credit shall be apportioned between the owners in proportion to their contribution to the cost of the system. The tax credit may be claimed for the following renewable energy technology systems installed and placed in service in Hawaii:
Type of Renewable Energy Technology System Rate Tax Credit Rate
1. Solar thermal energy systems
a. Single-family residential The lesser of 35% of the actual property cost of the system or $2,250.
b. Multi-family residential Per building unit: property The lesser of 35% of each unit’s actual cost of the system or $350.
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