N-360: Renewable Fuels Production Tax Credit (For Tax Years Beginning After December 31, 2021) (2024)
Hawaii · Hawaii DoTax · Used for tax years 2024
Hawaii Form N-360 calculates the renewable fuels production tax credit, including refundable and nonrefundable amounts and unused credit carried forward. It also reports credit received from other entities and allocations to partners, shareholders, or beneficiaries.
Who files this form
Use Form N-360 to claim Hawaii’s renewable fuels production tax credit. The form covers certified credits issued to you, credits received from other entities, and unused nonrefundable credits carried over from prior years.
Partners, S corporation shareholders, beneficiaries, and patrons can report credits received from other entities. Flow-through entities allocating the credit to partners, shareholders, or beneficiaries complete Part III.
What you'll need
- The credit certificate issued by the Hawaii State Energy Office (HSEO). The form directs you to attach it.
- Your name and SSN or FEIN, as shown on your tax return.
- If you received a credit from another entity, the applicable Schedule K-1 from Form N-20, N-35, or N-40, or federal Form 1099-PATR. You also need the entity’s name and federal employer identification number.
- If claiming a nonrefundable credit, your prior-year unused credit amount and adjusted income tax liability from the applicable Hawaii return. If claiming other nonrefundable credits, the form calls for the worksheet on page 2 of its instructions.
- For allocations in Part III, each recipient’s name, address, identifying number, and allocated credit amount. Attach additional sheets if needed.
How to file
Attach Form N-360 to Form N-11, N-15, N-20, N-30, N-35, N-40, or N-70NP. Attach the HSEO credit certificate as directed.
- Enter your certified credit on line 1 and any credit received from other entities on line 2. Add them on line 3.
- To elect refundable treatment, complete the refundable credit section. Otherwise, skip to line 9 for the nonrefundable credit calculation.
- Report the resulting credit amounts on Schedule CR as directed by the form.
Pass-through entities enter line 3 on the appropriate lines of their tax return and skip to Part III. Form N-40 filers reporting the trust or estate’s own share continue to line 4 or line 9.
The supplied form does not specify a mailing address or an e-file method.
Common mistakes
- Missing the certificate: The form directs you to attach the HSEO credit certificate.
- Starting on the wrong line: If you are only claiming a distributed share from a partnership, S corporation, estate, or trust, skip line 1 and begin on line 2.
- Overlooking the election warning: The election to claim the credit as refundable cannot be revoked or amended.
- Continuing after the refundable calculation: After completing line 7 or line 8, stop. Do not complete the rest of the form.
- Allocating a different total: Part III, line 4 must equal Part III, line 1.
Questions people ask
Can I choose to make the credit refundable?
Yes. Complete the refundable credit section to make that election. Under box 4(a), the credit is reduced by 30%. The election cannot be revoked or amended.
When does the refundable credit avoid the 30% reduction?
Box 4(b) applies if all your income is exempt from Hawaii taxation under a public retirement system or received as a pension for past services, or if your Hawaii adjusted gross income is $20,000 or less ($40,000 or less if filing jointly). If you check that box, line 8 uses the full amount from line 3.
What happens to an unused nonrefundable credit?
Line 16 calculates the unused credit available to carry forward against tax liability in subsequent tax years until exhausted.
Where do I find a credit passed through to me?
Partners use Schedule K-1 (Form N-20), S corporation shareholders use Schedule K-1 (Form N-35), beneficiaries use Schedule K-1 (Form N-40), and patrons use federal Form 1099-PATR. Report the appropriate amount on line 2.