N-340: Motion Picture, Digital Media, and Film Production Tax Credit (Revision 2022)
Hawaii · Hawaii DoTax · Used for tax years 2024, 2025, 2026
Hawaii Form N-340 calculates the Motion Picture, Digital Media, and Film Production Income Tax Credit from qualified production costs, including costs passed through from other entities. It also reports payments to loan-out companies and withholding payments remitted.
Who files this form
Form N-340 is used to claim Hawaii’s Motion Picture, Digital Media, and Film Production Income Tax Credit for qualified production costs.
The form also includes flow-through qualified production costs received by S corporation shareholders, partners, beneficiaries, and patrons. The supplied form does not state the full eligibility requirements.
What you'll need
- The letter from DBEDT, which must be attached with Form N-340 to your tax return.
- Schedule CR, where you report the credit from line 15.
- If you receive flow-through qualified production costs, the applicable Schedule K-1 from Form N-35, N-20, or N-40, or federal Form 1099-PATR. You also need the entity’s name and federal employer identification number.
To complete the form, you need your name, SSN or FEIN, qualified production cost totals, and amounts subject to the adjustments on lines 2 and 9. Part III asks for total payments to loan-out companies and total withholding payments remitted.
How to file
Attach Form N-340 and the letter from DBEDT to the applicable return: Form N-11, N-15, N-20, N-30, N-35, N-40, or N-70NP.
Enter the total credit from line 15, rounded to the nearest dollar, on the appropriate credit line of Schedule CR.
The supplied form does not provide a mailing address or e-filing instructions.
Common mistakes
Do not leave out the DBEDT letter. The form specifically reminds filers to attach both Form N-340 and the letter to the applicable tax return.
Questions people ask
What credit rates are shown on the form?
Part I uses a 22% rate for qualified production costs incurred in a county with a population over 700,000. Part II uses a 27% rate for costs incurred in a county with a population of 700,000 or less.
Which costs must be subtracted before calculating the credit?
Lines 2 and 9 identify costs for which an Internal Revenue Code Section 179 deduction was taken, or costs financed by investments for which any taxpayer claimed a credit under section 235-110.9, HRS. Subtract those amounts from the corresponding qualified production cost totals.
Where do I report flow-through qualified production costs?
Use line 4 for costs qualifying for the 22% credit and line 11 for costs qualifying for the 27% credit. Check the applicable entity box and enter the entity’s name and federal employer identification number.
What does Part III ask for?
Enter total payments to loan-out companies on line 16 and total withholding payments remitted on line 17.