Hawaii Film Tax Credit and Hawaii Research Credit

DBEDT Tax Credit Certifications

The link to the online application form will be posted on this page during the open period.

This is the DBEDT site for the Tax Credit for Research Activities(§HRS 235-110.91) and the Motion picture, digital media, and film production income tax credit (§HRS 235-17) certifications.

Tax Credit for Research Activities

The application period for 2021 ended on 3/31/21.

See Hawaii Revised Statutes §235-110.91 Tax credit for research activities for complete details.

The application period for 2021 is 3/1/21 to 3/31/21. The application fee for 2021 is being waived.

The Tax Credit for Research Activities (R&D Tax Credit) is a refundable income tax credit for a qualified high technology business equal to the credit for research activities provided by section 41 of the Internal Revenue Code and as modified by HRS 235-110.91.

The maximum credit available per year is $5 million. Certifications will be provided on a first come, first-served basis up until the cap is reached. The tax credit will be repealed from statute on December 31, 2024.

The online application form will require:

  1. Step 1 – Upload the completed, signed N346a form. The form is available to download on the DOTAX website at https://files.hawaii.gov/tax/forms/2020/n346a_i.pdf
  2. a. The date a completed, signed form is received by DBEDT will be considered the applicants application date.
  3. Step 2 – Upon completion of Step 1, a second form consisting of information previously collected through the R&D Tax Credit survey will be provided to the applicant. The information must be completed before the application will be reviewed. A sample questionnaire in PDF format can be obtained here.

DBEDT will review and verify the information submitted in the N346a application and, upon acceptance, return an approved certificate to the taxpayer. DBEDT anticipates certifications to be approved around June 30, 2021. The taxpayer is responsible for filing the certificate with the taxpayer’s tax return with the department of taxation.

Motion picture, digital media, and film production income tax credit (Film Tax Credit)

The Film Tax Credit a refundable income tax credit that is deductible from the taxpayer’s net income tax liability.

See Hawaii Revised Statutes §235-17 Motion picture, digital media, and film production income tax credit for complete details.

Contact: dbedt.tcra@hawaii.gov