N-358: Healthcare Preceptor Income Tax Credit (2025)
Hawaii · Hawaii DoTax · Used for tax years 2025
Form N-358 is used to calculate and claim Hawaii’s nonrefundable Healthcare Preceptor Income Tax Credit. It records qualified clinical training rotations and credit amounts certified by the Department of Health, the credit applied for the year, and any unused credit carried forwa
Who files this form
Use Form N-358 to figure and claim the healthcare preceptor income tax credit. You may claim the credit for the taxable year in which the Department of Health certifies your qualified volunteer-based supervised clinical training rotations.
A qualifying preceptor must be a Hawaii resident who maintains a professional primary care practice in Hawaii and is a licensed:
- Physician or osteopathic physician;
- Advanced practice registered nurse; or
- Pharmacist.
A qualifying rotation is uncompensated supervised clinical training of an eligible student, totaling at least 80 hours of supervisory time annually.
When it's due
For tax year 2025, the deadline to claim the credit, including an amended claim, is 12 months after the close of your taxable year. You cannot claim or amend the credit after that deadline.
What you'll need
To claim the credit, you need:
- Form N-358, with Part II completed.
- The Department of Health credit certificate, which verifies your qualified rotations and certified credit amount. Part I is completed by the Department of Health only.
- Schedule CR.
- Your Hawaii income tax return, Form N-11 or N-15, including your adjusted tax liability.
To complete Part II, you also need any unused healthcare preceptor credit carried over from the prior year. If you claim other nonrefundable credits listed in the credit worksheet, complete that worksheet to determine the amount for line 5.
How to file
Complete Part II of Form N-358 and attach the form and Schedule CR to your Hawaii Form N-11 or N-15. File the Department of Health certificate with your tax return with the Department of Taxation.
Report these amounts on Schedule CR:
- New credit from Part II, line 1, in column (b) on the appropriate line.
- Credit applied from Part II, line 7, on line 29, column (c).
- Unused credit from Part II, line 8, if greater than zero, on line 29, column (d).
You may obtain the request for certification by mail from:
Department of Health
Preceptor Credit Assurance Committee
651 Ilalo St.
Medical Education Building, Room 224M
Honolulu, HI 96813
Certification contact information: (808) 956-5211, ptc@hawaii.edu, or preceptortaxcredit.hawaii.edu. This address is provided for obtaining the certification request, not as a tax-return filing address.
Common mistakes
- Completing Part I yourself: Only the Department of Health may complete that certificate section.
- Leaving out required attachments: Attach Form N-358 and Schedule CR, and file the credit certificate with your return.
- Ignoring other nonrefundable credits: Certain credits must reduce your tax liability before this credit is applied. Use the worksheet when applicable.
- Claiming more than the remaining tax liability: Line 7 must be the smaller of lines 3 and 6, rounded to the nearest dollar.
- Claiming or amending too late: The form says you cannot do either after the credit claim deadline.
Questions people ask
How much is the credit?
The credit is $1,000 for each qualifying volunteer-based supervised clinical training rotation, up to $5,000 per taxable year.
Is the credit refundable?
No. It is nonrefundable. Credit that exceeds your tax liability may be carried forward to later tax years until used up.
Which students can qualify?
Eligible students are advanced practice registered nurse students, medical students, or pharmacy students enrolled in an academic program. The Department of Health verifies that the student was enrolled in an academic program in Hawaii.
Is there an overall limit on certified credits?
Yes. The Department of Health may certify no more than $1,500,000 in total credits per taxable year. Credits are certified on a first-come, first-served basis, and certification stops when the annual limit is reached.