N-342A: Information Statement Concerning Renewable Energy Technologies Income Tax Credit for Systems Installed and Placed in Service on or after July 1, 2009 (Revision 2020)

Who files this form

Hawaii S corporations, partnerships, estates, trusts, and condominium apartment associations must prepare Form N-342A for each individual or corporate shareholder, partner, member, or beneficiary receiving a share of the renewable energy technologies income tax credit.

Use a separate form for each eligible system. The entity attaches copies of the statements it issues to its own return. Recipients use the statement to claim their share of the credit on Form N-342.

What you'll need

Have the following information available to complete the statement:

• The entity’s name, address, and Social Security number or federal employer identification number.
• The name of the individual or corporation receiving the statement.
• The tax year or fiscal-year beginning and ending dates.
• The physical address where the system was installed and placed in service, and the date this occurred.
• Total Output Capacity for an “other solar energy system.”
• Qualifying system costs, consumer incentive premiums, costs used for other credits, and utility rebates.
• For multi-family property calculations, the square footage of the unit and all units, plus the number of units owned to which the allocated cost applies.
• Any other Form N-342A reporting a share of solar or wind-powered energy tax credits to include.

To claim the credit, the recipient must attach Form N-342 and a copy of Form N-342A to the income tax return.

How to file

1. The entity completes Form N-342A for each recipient and each eligible system, filling in the lines that apply to the claim.
2. The entity attaches a copy of each statement issued to its own return.
3. The recipient transfers the solar energy credit share from Form N-342A, line 43, to Form N-342, line 40. The wind-powered energy credit share from line 44 goes on Form N-342, line 41.
4. The recipient attaches both Form N-342 and a copy of Form N-342A to the income tax return on which the credit is claimed.

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

Common mistakes

• Leaving out system details. Be sure to enter the physical property address, the installation and placed-in-service date, and Total Output Capacity for an “other solar energy system.”
• Combining eligible systems on one statement without following the composite filing rules. The form says to use a separate statement for each eligible system and provides a composite filing option for qualifying entities.
• Forgetting required attachments. The entity must attach copies of the statements it issues to its return. Recipients must attach both Form N-342 and a copy of Form N-342A to the return claiming the credit.

Questions people ask

Does Form N-342A itself claim my share of the credit?

No. Use the information on the statement to complete Form N-342. Attach both Form N-342 and a copy of Form N-342A to the return on which you claim the credit.

Do rebates and incentives affect the system cost used for the credit?

Yes. Deduct the consumer incentive premiums described in the form, costs for which another credit is claimed, and utility rebates from the qualifying system cost before determining the credit.

How is the system cost allocated to a unit in a multi-family property?

Divide the unit’s square footage by the square footage of all units, enter the decimal rounded to two decimal places, and multiply by the actual system cost. If that calculation does not fairly represent the owners’ contribution, provide an alternative calculation.

When may an entity use a composite Form N-342A?

For taxable years beginning on or after January 1, 2011, an eligible entity that installed and placed in service 10 or more systems in a single taxable year may file composite Forms N-342A. Print “COMPOSITE” at the top and report totals from Form N-342B. The form directs filers to Announcement No. 2012-01 and the Instructions for Form N-342B for more information.

Where can I find the requirements for claiming the credit?

The form directs you to the Instructions for Form N-342 for eligibility requirements and definitions.

Official sources

• https://files.hawaii.gov/tax/forms/current/n342a_i.pdf