N-304: Affiliations Schedule (2025)
Hawaii · Hawaii DoTax · Used for tax years 2025
Hawaii Form N-304 is an affiliations schedule filed with each consolidated income tax return. It reports the common parent and subsidiary corporations, their estimated tax credits, business activities, stock ownership, and changes in stock holdings during the year.
Who files this form
File Form N-304 with each consolidated income tax return. The form states that consolidated returns are allowed only for domestic (Hawaii) corporations.
List every corporation that was a member of the affiliated group at any time during the taxable year.
What you'll need
Have the following information available to complete the schedule:
- The taxable year-end date and the common parent's name, mailing address, and federal employer identification number.
- Each corporation's name, mailing address, federal employer identification number, principal business activity, and portion of estimated tax credits.
- The corresponding total on Form N-30, so you can check that the totals match.
- Whether each subsidiary made any nondividend distributions.
- Beginning-of-year stock and ownership details, including voting and nonvoting shares, the owning corporation's number, voting power, and percentage of value.
- Stock changes during the year, including dates, shares acquired or disposed of, year-end holdings, and any stock issued or retired.
- Details about excluded nonvoting stock and any equitable owners who differed from the holders of record.
How to file
Submit Form N-304 with the consolidated income tax return. An officer must sign and date the declaration and provide their title.
The supplied form does not specify a mailing address or an e-file method.
Common mistakes
- Leaving out a group member: Include all corporations that belonged to the affiliated group at any time during the taxable year.
- Reporting mismatched totals: The estimated tax credit total must equal the amount shown on Form N-30.
- Using inconsistent corporation numbers: Corporation numbers on page 2 must agree with those on the front.
- Missing special stock reporting rules: Do not show nonvoting stock that is limited and preferred as to dividends in the stock listing. Describe the dividend limitation and preference under “Remarks.” If more than one class of nonvoting stock is outstanding, show the number of shares for each class that must be listed.
- Missing stock transaction details: Give dates and amounts for additional stock issued or stock retired during the year. If a corporation did not exist at the beginning of the year, show its stock outstanding at the date issued.
- Omitting ownership details: Give full details if the equitable owners of reported capital stock were different from the holders of record.
Questions people ask
Is Form N-304 filed separately from the consolidated return?
No. The form says to file it with each consolidated income tax return.
Do we include a corporation that belonged to the group for only part of the year?
Yes. List every corporation that was a member at any time during the taxable year.
What ownership levels does the form use to define an affiliated group?
The form says a group forms when an includible common parent directly owns stock in another includible corporation possessing at least 80 percent of the voting power of all classes of stock and at least 80 percent of each class of nonvoting stock. Nonvoting stock that is limited and preferred as to dividends is excluded from that nonvoting-stock test.
Where do we report stock ownership changes during the year?
Use the “Changes in Stock Holdings During the Year” section on page 2. The corporation numbers must match those on the front. Also show the dates and amounts of any additional stock issued or stock retired.
Who signs the schedule?
An officer signs the declaration and enters their title and the date. The declaration states that the information has been examined and is true, correct, and complete to the best of the officer's knowledge and belief.