N-348: Capital Infrastructure Tax Credit (2025)
Hawaii · Hawaii DoTax · Used for tax years 2025
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. The credit expired on December 31, 2019, and the form may be filed only if you have a prior-year carryover.
Who files this form
For tax year 2025, 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 preserve a carryover, attach Form N-348 and any required Schedule CR to your Hawaii income tax or franchise tax return. You must do this even if your remaining tax liability is zero and you cannot use any of the credit this year.
When it's due
The printed instructions state that the deadline to claim the credit, including amended claims, is 12 months after the close of your taxable year. You cannot claim or amend the credit after that deadline.
No specific calendar filing deadline is printed for tax year 2025. The 2025 form is limited to prior-year credit carryovers.
What you'll need
- Form N-348, with your name as shown on your tax return and your SSN or FEIN.
- Your Hawaii income tax or franchise tax return and the amount of unused credit carried over from the prior year.
- Schedule CR if you file Form N-11, N-15, N-30, N-40, or N-70NP.
- The Capital Infrastructure Tax Credit Worksheet printed in the instructions, if you claim other nonrefundable credits.
- Any Schedule K-1 reporting your share of credit recapture, if applicable.
How to file
Attach Form N-348 to the applicable return: Form F-1, N-11, N-15, N-20, N-30, N-35, N-40, or N-70NP. The supplied text does not give a mailing address or e-filing directions.
For Part I:
- Enter your unused prior-year credit on line 1.
- Enter your adjusted tax liability on line 2. Form N-20 and N-35 filers do not complete line 2.
- 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 if the result is zero or negative.
- Enter the smaller of line 1 or line 4 on line 5. Also report it on Schedule CR, line 23, column (c), or Form F-1, line 73, as applicable.
- Subtract line 5 from line 1 to find your unused carryover. If it is greater than zero, also enter it on Schedule CR, line 23, column (d).
If credit recapture applies, complete Part II and enter or include the total, rounded to the nearest dollar, on the applicable line of your tax return.
Common mistakes
- Trying to claim a new credit. The credit has expired. This form is only for prior-year carryovers.
- Leaving out carryover forms because no credit can be used this year. The instructions warn that you will lose your unused carryover if the required forms are not attached, even when your remaining tax liability is zero.
- Skipping the worksheet when claiming other nonrefundable credits. Certain other credits must reduce your tax liability before the capital infrastructure tax credit is allowed.
Questions people ask
Can I use Form N-348 for a new 2025 credit?
No. The credit expired on December 31, 2019. You may file this form only for a credit carryover from a prior year.
How much of my carryover can I use this year?
Part I, line 5 uses the smaller of your prior-year carryover on line 1 or your remaining tax liability on line 4.
What happens to credit I cannot use?
Unused credit may be carried forward and used against tax liability in later years until exhausted. You must attach the required carryover forms to preserve it.
Do I need to file the forms if my remaining tax liability is zero?
Yes. The instructions require the carryover forms with your Hawaii tax return even when line 4 is zero.