N-309: Corporation Application for Tentative Refund from Carryback of Net Operating Loss (Revision 2023)
Hawaii · Hawaii DoTax · Used for tax years 2024, 2025, 2026
Hawaii Form N-309 is a corporation’s application for a tentative refund from carrying back a farming net operating loss (NOL). It reports the loss and computes the decrease in tax for the affected prior years. The application must be filed separately from the income tax return.
Who files this form
A corporation that wants a quick refund of taxes from carrying back a farming net operating loss (NOL) must use Form N-309. Use this form only if the corporation chooses to carry the farming NOL back.
This does not apply to an S corporation that elects the tax treatment provided by IRC section 1372(a).
For NOLs arising in tax years ending after December 31, 2017, only farming NOLs may be carried back two years.
What you'll need
Attach:
- Copies of the first two pages of the corporation’s federal return for the loss year.
- Forms or schedules from which the carryback results.
- Forms or schedules for items recalculated in the carryback years.
- A separate schedule showing all adjustments used to compute the farming NOL being carried back.
- The computation of the NOL deduction on line 12.
- Detailed computations of the new tax liability on lines 16, 17, and 19, and a schedule showing recalculated deductions.
- For accrual-basis taxpayers, a separate schedule showing the required NOL deduction reduction for the tax benefit from the original state income tax expense deduction.
Have the original or amended returns, or previously adjusted amounts, for the carryback years available. If a return was examined, use the amounts determined by that examination.
How to file
File Form N-309 separately from the corporation’s income tax return. Send it to:
Hawaii Department of Taxation
P.O. Box 3559
Honolulu, HI 96811-3559
Enter the corporation’s identifying information, loss year, NOL amount, and information about the affected carryback years. Recalculate the tax starting with the earliest carryback year, and attach the required computations and supporting documents.
An officer or agent must sign and date the application and enter their title.
Common mistakes
- Attaching N-309 to the income tax return. An attached application cannot be processed and will not be considered timely filed, even if submitted within the stated filing period.
- Not reporting a mailing address change. Complete Form ITPS-COA or update the address through Hawaii Tax Online at hitax.hawaii.gov. The U.S. Postal Service cannot forward a State refund check.
- Leaving out important information or making computation errors. The application may be disallowed if the director determines those problems cannot be corrected within 90 days.
- Trying to carry back a nonfarming NOL. For NOLs arising in tax years ending after December 31, 2017, only farming NOLs may be carried back two years.
Questions people ask
Can the corporation choose to carry a farming NOL forward instead?
Yes. Attach a statement making that election to a timely filed return, including extensions, for the farming NOL year. If the corporation makes this election, it can use that farming NOL only in the carryforward period.
Is there a limit on the farming NOL deduction?
For an NOL occurring in tax years beginning after December 31, 2017, the deduction attributable to farming losses cannot exceed 80% of taxable income for the year, calculated without the NOL. Any farming NOL carried back but not applied can be carried forward indefinitely.
How long does the Department have to act on the application?
The director will act within 90 days after the later of the application’s filing date or the last day of the month containing the legal filing deadline, including any granted extension, for the loss-year return.
What if the application is disallowed?
The corporation may file a regular claim for credit or refund on an amended Form N-30 before the applicable limitation period expires. Form N-309 itself does not constitute a claim for credit or refund.