Hawaii Fuel Tax Credit for Commercial Fishers - Individual

Fuel Tax Credit for Commercial Fishers - Individual
Form N-163, Rev. 2020, Fuel Tax Credit for Commercial Fishers
Clear Form
STATE OF HAWAII — DEPARTMENT OF TAXATION
FORM

FUEL TAX CREDIT FOR COMMERCIAL FISHERS

N-163
(REV. 2020)

TAX
YEAR

Or fiscal year beginning 	

, 20 	

and ending 	

20__

, 20 	

ATTACH TO FORM N-11, N-15, N-20, N-30, N-35, N-40, OR N-70NP,
WHICHEVER IS APPLICABLE
NOTE: References to “married” and “spouse” are also references to “in a civil union” and “civil union partner,” respectively.

Name(s) as shown on tax return	

SSN or FEIN

PART I — COMPUTATION OF TAX CREDIT FOR COMMERCIAL FISHERS
Note: If you are only claiming your distributive share(s) of a credit distributed from a partnership, an S Corporation, an
estate, or a trust, skip lines 1 through 3 and begin on line 4.
1.	 Enter the number of gallons of diesel oil purchased and used by the principal operator............................. 	

	

2.	 Multiply the number of gallons from line 1 by $0.01 and enter the amount here.......................................... 	$ 
	
3.	 Add the amount of credit from Part II, line 3, Columns A through D, and enter total here............................ 	$ 
	
4.	 Flow through of fuel tax credit for commercial fishers received from other entities, if any:
Check the applicable box below. Enter the name and Federal Employer I.D. No. of Entity:
__________________________________________________________________________________
 a S corporation shareholder — enter amount from Schedule K-1 (Form N-35),
 b Partner — enter amount from Schedule K-1 (Form N-20),
 c Beneficiary — enter amount from Schedule K-1 (Form N-40),
 d Patron — enter amount from federal Form 1099-PATR....................................................................... 	$ 
	
5.	 Add the credit from lines 2, 3, and 4. Enter the total here and on the appropriate line of Schedule CR
(for Form N-11, N-15, N-30, N-40 and N-70NP filers) (rounded to the nearest dollar)................................. 	$	

PART II — WORKSHEET FOR GASOLINE PURCHASED AND USED BY PRINCIPAL OPERATOR
	
	
	
1.	 Enter the number of gallons of
gasoline purchased and used by the
principal operator.	

Column A	

Column B	

Column C	

Column D

City & County of 	
County of	
County of	
County of
Honolulu	Maui	 Hawaii	 Kauai

	

	

	

	

	

2.	 Rate (see Instructions)	

x $0.325	

	

x	

	

x

3.	 Multiply the number of gallons from
line 1 by the rate listed on line 2	

$	

	$	

	$	

	

	

	

	

x $0.330	

	$	

	

		
FORM N-163
N163_I 2020A 01 VID01

ID NO 01

FORM N-163
(REV. 2020)	

CHANGES TO NOTE
Maui County Resolution No. 20-82 increases the County of
Maui fuel tax from $0.23 per gallon to $0.24 per gallon effective
July 1, 2020

GENERAL INSTRUCTIONS
Note: Hawaii recognizes same-sex marriages. Therefore, all
same-sex couples that are legally married in Hawaii or any other
jurisdiction where such marriages are valid are married for all tax
purposes.
Note: Civil unions are recognized in Hawaii. Hawaii’s laws that
apply to a husband and wife, spouses, or person in a legal marital
relationship shall be deemed to apply to partners in a civil union
with the same force and effect as if they were “husband and wife,”
“spouses,” or other terms that describe persons in a legal marital
relationship.

PAGE 2

(2)	 Schedule CR (For tax returns for which Schedule CR is
required)
(3)	 Schedule K-1 (Required only if you are claiming a distributive
share of a credit from a partnership, S corporation, estate, or
trust)
Flow-Through Entities
If you are a partnership, S corporation, estate, or trust that is
allocating this credit to your partners, shareholders, or beneficiaries,
complete Form N-163 and attach it to your Hawaii income tax
return. Then enter the total fuel tax credit for commercial fishers
on the applicable line of your Hawaii income tax return (see the
instructions for line 5). Prepare and provide Schedule K-1 reporting
the distributive share of the fuel tax credit for commercial fishers for
each partner, shareholder, or beneficiary.
Deadline for Claiming the Credit

A principal operator of a commercial fishing vessel who files an
income tax return for the taxable year may be eligible for the fuel tax
credit for commercial fishers.

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 the deadline.

The amount of the credit is limited to the fuel taxes imposed
under section 243-4(a), Hawaii Revised Statutes (HRS), and paid
by the principal operator for use in the operation of the fishing
vessel during the indicated taxable year.

SPECIFIC INSTRUCTIONS

A taxpayer and spouse filing separate returns, where a joint
return could have been filed, shall claim only the credit to which the
taxpayer and spouse would have been entitled had a joint return
been filed.
If the properly claimed and allowed credit exceeds the amount
of the income tax due and payable from the principal operator, the
excess will be refunded to the principal operator.
Purpose of Form
Use Form N-163 to figure and claim the fuel tax credit for
commercial fishers under sections 235-110.6, HRS, and 18-235110.6, Hawaii Administrative Rules.
Who May Claim This Credit
This credit may be claimed by a principal operator of a
commercial fishing vessel who purchases and actually uses the
fuel to operate a fishing vessel for commercial purposes.
When the Credit May Not Be Claimed
This credit may not be claimed if any of the following apply:
(1)	 You use the fuel in the operation of charter fishing boats and
the like where the income is derived from fees and sources
other than from commercial fishing.
(2)	 You use the fuel in the operation of a fishing vessel where
the activity is not engaged in for profit as provided in Internal
Revenue Code section 183.
(3)	 You use alternative fuels. However, you may obtain a refund
of the fuel taxes paid by filing Form M-36, Combined Claim for
Refund of Fuel Taxes.
Credit Requirements
To claim this credit, you must complete and attach to your
Hawaii income tax return:
(1)	 Form N-163

PART I — COMPUTATION OF TAX CREDIT FOR COMMERCIAL
FISHERS
Line 4. Flow through of credit received from other entities, if
any. In the case of a taxpayer who is a member of a flow-through
entity (i.e., S corporation, partnership, estate, or trust), enter the
amount of the credit received from the entity on line 4. Attach a
copy of the applicable Schedule K-1 to Form N-163 when the credit
is claimed.
Line 5. Form N-11, N-15, N-30, and N-70NP filers, enter the
amount on line 5 on the appropriate line of Schedule CR (rounded
to the nearest dollar).
Form N-40 filers, enter the amount on line 5 that is allocated
to the estate or trust on the appropriate line of Schedule CR. Enter
the amount on line 5 that is allocated to the beneficiary to Schedule
K-1, Form N-40, for each beneficiary.
Form N-35 filers, enter the amount on line 5 on the appropriate
line of Schedule K.
Form N-20 filers, enter the amount on line 5 on the appropriate
line of Schedule K.
PART II — WORKSHEET FOR GASOLINE PURCHASED AND
USED BY PRINCIPAL OPERATOR
Line 2, Column B. The County of Maui fuel tax per gallon of
liquid fuel is as follows:
$0.390 per gallon before July 1, 2020
$0.400 per gallon from July 1, 2020.
Line 2, Column C. The County of Hawaii fuel tax per gallon of
liquid fuel is as follows:
$0.350 per gallon from July 1, 2018 through June 30, 2019
$0.390 per gallon from July 1, 2019.
If your credit will be calculated using two different tax rates,
attach a separate schedule showing the calculation. Leave lines 1
and 2 of Column B and C blank, and enter the total amount of the
credit on line 3, Column B and C.