N-323: Carryover of Tax Credits (Revision 2024)

Who files this form

Use Form N-323 to report unused tax credits carried over from prior years for these credits:

• Energy conservation.
• Hotel construction and remodeling, for costs incurred after November 1, 2001, but before July 1, 2003.
• Cesspool upgrade, conversion or connection.
• Residential construction and remodeling.
• Renewable energy technologies, for systems installed and placed in service before July 1, 2009.
• Technology infrastructure renovation.
• High technology business investment.
• Organic foods production.
• Renewable fuels production, for tax years before January 1, 2022.

The form is attached to Form F-1, N-11, N-15, N-30, N-40, or N-70NP.

What you'll need

Have the following information and forms available:

• Your name as shown on your return and your SSN or FEIN.
• Your tax year or fiscal-year beginning and ending dates.
• Your applicable tax return: Form F-1, N-11, N-15, N-30, N-40, or N-70NP. Line 1 asks for the adjusted tax liability from that return.
• The unused credit amounts carried over from prior years.
• The applicable credit worksheet in the instructions, if you are claiming other credits. Form N-323 directs you to enter the worksheet total in the relevant credit section.
• Schedule CR, or Form F-1, Schedule H where specified, to report the credit applied.

How to file

Attach Form N-323 to your Form F-1, N-11, N-15, N-30, N-40, or N-70NP.

Report each credit applied on the appropriate line of Schedule CR, column (c). For Form F-1 filers, the energy conservation, renewable energy technologies, and high technology business investment sections direct you to the appropriate line of Schedule H instead.

If an unused credit carryover is more than zero, the form directs you to also enter it on the appropriate line of Schedule CR, column (d).

The supplied form does not give a mailing address or e-filing instructions.

Common mistakes

• Using the wrong form for newer renewable energy systems. The note says to use Form N-342 for systems installed and placed in service on or after July 1, 2009.
• Using the wrong form for newer renewable fuels credits. The note says to use Form N-360 for taxable years beginning after December 31, 2021.
• Overlooking the hotel credit's cost dates. The note limits this computation to costs incurred after November 1, 2001, but before July 1, 2003.
• Treating expired credits as new credits. The form identifies the energy conservation, residential construction and remodeling, cesspool, technology infrastructure renovation, high technology business investment, and organic foods production credits as expired. These sections are for carryovers.

Questions people ask

How much of a carryover can I apply this year?

For each credit, enter the smaller of the remaining adjusted tax liability calculated in that section or the unused credit carried over from prior years.

What if the remaining adjusted tax liability is zero or negative?

Enter zero on that section's remaining tax liability line and on its “Total Credit Applied” line.

What happens to credit I cannot use this year?

Subtract the credit applied from the prior-year unused credit. The form says the remaining unused credit may be carried forward against your tax liability in subsequent years until exhausted.

What if I am claiming other credits too?

Complete the worksheet named in the relevant credit section and enter its total on Form N-323. The form refers to worksheets in the instructions, but those instructions were not included in the supplied text.

Official sources

• https://files.hawaii.gov/tax/forms/current/n323_i.pdf