N-346A: Certified Statement of Research and Development Costs Incurred by a Qualified High Technology Business (QHTB) and Claim of the Tax Credit for Research Activities (Revision 2024)
Hawaii · Hawaii DoTax · Used for tax years 2025, 2026
Hawaii Form N-346A reports a qualified high technology business's eligible research expenses, the portion attributable to research conducted in Hawaii, and its claim for the tax credit for research activities. It includes a certification by the Department of Business, Economic De
Who files this form
A qualified high technology business (QHTB) must submit completed Form N-346A before it can claim or distribute the Hawaii tax credit for research activities.
The form states that:
- Research expenses attributable to activities outside Hawaii do not qualify.
- You must have claimed or plan to claim the federal credit for increasing research activities for the expenses reported on line 1g.
- Nonprofit organizations exempt from taxation under IRC section 501(c) cannot claim the Hawaii credit.
When it's due
The form says it must be submitted to the Department of Business, Economic Development, and Tourism (DBEDT) on or before March 30.
The printed text does not specify the deadline year or give separate dated deadlines for tax years 2025 and 2026.
What you'll need
Have the following information and attachments ready:
- The QHTB's name as shown on its Hawaii tax return, SSN or FEIN, mailing address, and contact information.
- Eligible research expense amounts to be reported on federal Form(s) 6765, the portion attributable to Hawaii research, and the federal credit amount.
- All supplemental schedules.
- A brief description of the research projects. Attach a separate sheet if needed.
- For a partnership, S corporation, estate, trust, or cooperative: a list of the partners, shareholders, beneficiaries, or patrons, their SSNs or FEINs, and each person's allocated or distributive share of the credit.
When claiming the credit, attach completed Part II to Form N-346. If the QHTB is a flow-through entity, also attach its Schedule K-1 establishing your share of the credit.
How to file
- Complete Part I and attach all supplemental schedules. An authorized person must sign the declaration and provide the date, printed name, and title.
- Complete lines 1 through 3 of Part II, then submit the form to DBEDT for certification.
- DBEDT will complete Part II and mail it to the QHTB at the address reported on page 1.
- Attach a copy of completed Part II to Form N-346, Tax Credit for Research Activities. The form also directs attachment to the applicable return: Form N-11, N-15, N-20, N-30, N-35, N-40, or N-70NP.
The supplied text does not give a submission mailing address or e-filing directions.
Common mistakes
- Including research expenses attributable to activities outside Hawaii. These do not qualify for the credit.
- Including wages used to figure the federal work opportunity credit in line 1c.
- Claiming the Hawaii credit when you answered “No” to the federal credit question on line 5, or “Yes” to the tax-exempt nonprofit question on line 7.
- Forgetting to attach all supplemental schedules.
- Treating DBEDT certification as approval of eligibility. The audit notice says certification only acknowledges receipt of taxpayer-provided information. All credit claims remain subject to audit and challenge.
Questions people ask
How is the tentative Hawaii credit calculated?
Divide eligible Hawaii research expenses on line 1g, Column B, by total eligible research expenses on line 1g, Column A. Round that result to six decimal places, then multiply it by the federal credit amount entered on line 3.
How should I round dollar amounts?
Round all dollar entries to the nearest whole dollar.
Who completes Part II?
The QHTB completes lines 1 through 3. DBEDT certifies Part II and mails it to the QHTB at the address on page 1.
Does certification guarantee the credit?
No. Certification acknowledges receipt of the information provided. The Department reserves the right to challenge all or part of the credit claim.