N-348: Capital Infrastructure Tax Credit (2024)
Hawaii · Hawaii DoTax · Used for tax years 2024
Hawaii Form N-348 calculates the use and remaining carryover of an unused Capital Infrastructure Tax Credit from a prior year. It also reports any recapture of the credit.
Who files this form
For tax year 2024, you may file Form N-348 only if you have unused capital infrastructure tax credit carried over from a prior year. The credit expired on December 31, 2019.
To carry over unused credit, complete and attach Form N-348 to your Hawaii income tax or franchise tax return. You must file the required forms even if your remaining tax liability is zero and you cannot use any credit this year.
When it's due
The instructions in the 2024 form state that the deadline to claim the credit, including amended claims, is 12 months after the close of your taxable year. They say you cannot claim or amend the credit after that deadline.
No specific calendar filing deadline for tax year 2024 is printed. The 2024 form is limited to carryovers of prior-year credit.
What you'll need
- Form N-348, with your name as shown on your tax return and your SSN or FEIN.
- Your Hawaii tax return: Form F-1, N-11, N-15, N-20, N-30, N-35, N-40, or N-70NP, as applicable.
- Schedule CR if you file Form N-11, N-15, N-30, N-40, or N-70NP.
- Your prior-year unused credit amount for Part I, line 1.
- Your adjusted tax liability from the applicable return. Form N-20 and N-35 filers do not complete Part I, line 2.
- The credit worksheet in the instructions if you claim other nonrefundable credits.
- Schedule K-1(s) reporting credit recapture, if applicable, for Part II, line 2.
How to file
- Enter your prior-year unused credit on Part I, line 1.
- Enter your adjusted tax liability on line 2, unless you file Form N-20 or N-35.
- If you claim other nonrefundable credits, complete the credit worksheet and enter its total on line 3. Otherwise, enter zero.
- Subtract line 3 from line 2. Enter zero on line 4 if the result is zero or less.
- Enter the smaller of line 1 or line 4 on line 5. Also report that amount on Schedule CR, line 22, column (c), or Form F-1, line 73, whichever applies.
- Subtract line 5 from line 1 to find your unused credit carryover on line 6. If it is more than zero, also enter it on Schedule CR, line 22, column (d).
Attach Form N-348 to your applicable Hawaii tax return. Attach Schedule CR as required for Forms N-11, N-15, N-30, N-40, and N-70NP.
The supplied text does not provide a mailing address or e-filing instructions.
Common mistakes
- Trying to claim a new credit: The credit expired on December 31, 2019. You may file this form only for a prior-year carryover.
- Skipping the attachments when no credit can be used: You must still attach the required forms if your remaining tax liability is zero. The instructions warn that you will lose your unused credit carryover if the forms are not attached.
- Ignoring other nonrefundable credits: Certain credits must reduce your tax liability before this credit is allowed. Complete the worksheet if you claim other nonrefundable credits.
- Using the same costs for another credit: The instructions say this credit may not be claimed if the capital infrastructure costs are used to claim another credit.
Questions people ask
Can I claim a new capital infrastructure tax credit for 2024?
No. The credit expired on December 31, 2019. The 2024 form may be filed only if you have a carryover from a prior year.
What happens if I cannot use all of my carryover this year?
The unused amount on Part I, line 6 may be carried over and used against tax liability in later years until exhausted.
Do I need to file the form if my remaining tax liability is zero?
Yes. File Form N-348 and any required Schedule CR with your Hawaii tax return to preserve the carryover. The instructions warn that you will lose the carryover if the required forms are not attached.
How much of the carryover can I use this year?
Part I, line 5 is the smaller of your prior-year unused credit on line 1 or your remaining tax liability on line 4.
Where do I report recapture shown on my Schedule K-1s?
Enter the total recapture reported on all Schedule K-1s issued to you on Part II, line 2. Add Part II, lines 1 and 2, then enter or include the total, rounded to the nearest dollar, on the applicable line of your tax return.