N-342: Renewable Energy Technologies Income Tax Credit for Systems Placed in Service on or after July 1, 2009 (2024)

Who files this form

Use Form N-342 to claim the renewable energy technologies income tax credit for a qualified solar or wind-powered energy system installed and placed in service in Hawaii on or after July 1, 2009.

The form also covers:

• Your distributive share of a credit from Form N-342A.
• Unused credits carried over from prior years for systems installed and placed in service on or after July 1, 2009.

Use a separate form for each eligible system and for carryover credits.

What you'll need

Have the information needed for the parts of the form that apply to you:

• Your name and SSN or FEIN.
• The installation property's address and the date the system was installed and placed in service.
• The system's total cost, consumer incentive premiums, costs used for other credits, and utility rebates.
• Total output capacity for “Other Solar Energy Systems.”
• For multi-family property, your unit's square footage, the total square footage of all units, and the number of applicable units you own.
• Prior-year unused credit amounts, if claiming a carryover.
• Your adjusted tax liability and other credits, if completing the nonrefundable credit section.

Attach Form N-342A if claiming a distributive share of the credit. If you are claiming other credits, including a nonrefundable credit for another system, line 51 directs you to complete the credit worksheet in the instructions.

How to file

Attach Form N-342 to the applicable return: Form F-1, N-11, N-15, N-20, N-30, N-35, N-40, or N-70NP.

• Complete the solar or wind-powered system section that applies to your claim.
• If you are only claiming a distributive share from Form N-342A, skip lines 1 through 39 and begin on line 40.
• For a carryover claim, enter “CARRYOVER” on the property address line and continue to line 47.
• If filing Form N-20 or N-35, stop after line 41.
• Otherwise, complete the refundable election section if electing a refundable credit, or skip to line 47 for the nonrefundable credit.

Transfer the credit amounts to Schedule CR or the applicable Form F-1 schedule as directed on the form.

Common mistakes

• Combining claims on one form. The form requires a separate form for each eligible system or carryover credit.
• Overlooking the refundable election warning. An election to claim the credit as refundable cannot be revoked or amended.
• Continuing past a stop instruction. Form N-20 and N-35 filers must stop after line 41. Filers completing line 45 or 46 must stop there and not complete the rest of the form.
• Starting in the wrong place. Distributive-share-only claims begin on line 40. Carryover claims require “CARRYOVER” on the address line and continue at line 47.

Questions people ask

Does the form cover both solar and wind-powered systems?

Yes. It has separate sections for solar energy systems and wind-powered energy systems.

Does it matter whether my solar system heats household water?

Yes. Line 4 asks whether the system is primarily used to heat water for household use. If yes, continue to line 5. If no, go to line 15.

Can I elect a refundable solar energy credit?

Line 42(a) allows you to elect a refundable solar energy credit with a 30% reduction in the credit amount. The refundable election cannot be revoked or amended.

What happens to unused nonrefundable credit?

Line 54 states that unused credit may be carried over and used against income tax liability in subsequent years until exhausted.

Official sources

• https://files.hawaii.gov/tax/forms/2024/n342_i.pdf