Hawaii Capital Infrastructure Tax Credit

Capital Infrastructure Tax Credit
Form N-348, Rev. 2022, Capital Infrastructure Tax Credit
Clear Form
STATE OF HAWAII—DEPARTMENT OF TAXATION

		

CAPITAL INFRASTRUCTURE TAX CREDIT	

			
FORM
	
	

TAX
YEAR

		
		 N-348
	
Or fiscal year beginning ________________, 20__, and ending _________________, 20____	
20__
(REV. 2023)
ATTACH TO FORM F-1, N-11, N-15, N-20, N-30, N-35, N-40, OR N-70NP
Name(s) as shown on tax return	

SSN or FEIN

Note:	 The Capital Infrastructure Tax Credit expired on December 31, 2019. You may file this form only if you have a carryover of the tax credit from a
prior year.

Part I

CARRYOVER COMPUTATION

1	 Carryover of unused capital infrastructure tax credit from prior year..................................................................................	
2	 Adjusted Tax Liability (Not to be completed by Form N-20 and Form N-35 filers)
Enter your adjusted tax liability from the applicable Form F-1, N-11, N-15, N-30, N-40 or N-70NP......................................	
3	 If you are claiming other nonrefundable credits, complete the credit worksheet in the instructions and enter
the total here. If you are not claiming other nonrefundable credits, enter zero...................................................................	
4	 Line 2 minus line 3. This represents your remaining tax liability. If the result is zero or less than zero, enter zero............	
5	 Total Credit Applied — Enter the smaller of line 1 or line 4. This is your capital infrastructure tax credit applied for the
year. Also, enter this amount on Schedule CR, line 23 in Column (b) or Form F-1, line 73, whichever is applicable.......	
6	 Unused Credit to Carryover — Line 1 minus line 5. This represents your current year’s carryover of unused credit
which may be carried over and used as a credit against your tax liability in subsequent years until exhausted. If this
amount is more than zero, also enter it on Schedule CR, line 23 in Column (c) ..............................................................	

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1	 Enter the amount of the credit claimed in tax years 2014 through 2019.............................................................................	
2	 Enter your share of the recapture of the credits as reported on Schedule K-1(s)...............................................................	
3	 Add lines 1 and 2. This represents the recapture of the credit. Enter or include this amount, rounded to the nearest
dollar, on the applicable line of your tax return. (See Instructions).....................................................................................	

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2

Part II

RECAPTURE OF THE TAX CREDIT

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N348_I 2023A 01 VID01

ID NO 01

FORM N-348 (REV. 2023)

Form N-348 Instructions (REV. 2023)	

PAGE 2

Note: The Capital Infrastructure Tax Credit expired on December 31,
2019. You may file this form only if you have a carryover of the tax credit from
a previous year.

GENERAL INSTRUCTIONS

The capital infrastructure tax credit under section 235-17.5, Hawaii Revised Statutes, helps tenants who were displaced by the Kapalama container
terminal project, is effective for taxable years beginning after December 31,
2013. The credit will not be available for taxable years beginning after December 31, 2019.
The tax credit is the lesser of 50% of the capital infrastructure costs paid
or incurred by a qualified infrastructure tenant during the taxable year or
$2,500,000.
This credit may not be claimed if the capital infrastructure costs are used
to claim another credit.
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.

Carryover Requirements
To carryover this credit, you must complete and attach to your Hawaii
income tax or franchise tax return (1) Form N-348 and (2) Schedule CR
(Forms N-11, N-15, N-30, N-40 and N-70NP).
If you are not able to use this credit because your tax liability on line 4
is zero, file the forms listed above with your Hawaii tax return to claim and
carryover your unused credit. If the forms are not attached, you will lose any
carryover of your unused credit.

Recapture of the Tax Credit

CAPITAL INFRASTRUCTURE
TAX CREDIT WORKSHEET
Tax Credit	
a.	 Income Taxes Paid to Another
State or Foreign Country........	 	
b.	 Enterprise Zone Tax Credit.....	 	
c.	 Pass-Through Entity
Tax Credit................................	 	
d.	 Carryover of the Energy
Conservation Tax Credit.........	 	
e.	 Credit for Employment of
Vocational Rehabilitation
Referrals.................................	 	
f.	

Credit for School Repair and
Maintenance...........................	 	

g.	 Carryover of the Renewable Energy
Technologies Income Tax Credit (For
Systems Installed and Placed In
Service Before July 1, 2009)...	 	
h.	 Renewable Energy Technologies
Income Tax Credit (Nonrefundable)	
i.	

Carryover of the Cesspool Upgrade,
Conversion or Connection Income 		
Tax Credit................................	___________________________

j.	

Carryover of the Earned Income
Tax Credit (Nonrefundable).....	___________________________

Any credit claimed shall be recaptured following the close of the taxable
year for which the credit is claimed if:

k.	 Healthcare Preceptor Tax Credit	

(1)	Within three years:
(A)	 The qualified infrastructure tenant fails to continue the line of
business it conducted as of July 1, 2014; or
(B)	 The interest in the qualified infrastructure tenant, whether in whole
or in part, has been sold, exchanged, withdrawn, or otherwise
disposed of by the taxpayer claiming a credit; or
(2)	The qualified infrastructure tenant fails to relocate from the former
Kapalama military reservation site to another location, pursuant to
a lease with the Department of Transportation, within 90 days of the
execution of the lease.
The recapture shall be equal to 100% of the amount of the total tax credit
claimed in the preceding five taxable years, and shall be added to the taxpayer’s tax liability for the taxable year in which the recapture occurs.

m.	 Carryover of the High
Technology Business
Investment Tax Credit.............	 	

SPECIFIC INSTRUCTIONS

Part I, Carryover Computation
Line 1 — This line is for the carryover of unused capital infrastructure tax
credit from the prior year.
Line 3 — The law requires that certain other credits offset a taxpayer’s tax
liability before allowing a capital infrastructure tax credit. If you are claiming other nonrefundable credits, complete the Credit Worksheet in these
instructions and enter the result on line 3. If you are not claiming other
nonrefundable credits, enter zero.
Part II, Recapture of the Tax Credit
Line 1 — The recapture is 100% of the amount of the total tax credit claimed
in the preceding five taxable years.
Line 2 — Enter the total amount of recapture of the credit reported on all
Schedule K-1(s) issued to you.

Amount

l.	

Low-Income Housing Tax Credit	

n.	 Carryover of the Technology
Infrastructure Renovation Tax Credit	
o.	 Carryover of the Residential
Construction and Remodeling
Tax Credit................................	 	
p.	 Carryover of the Hotel
Construction and Remodeling
Tax Credit................................	 	
q.	 Add lines a through p.
Enter the amount here and
on Part I, line 3........................