Hawaii Film Tax Credit and Hawaii Research Credit

DBEDT Tax Credit Certifications

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

Applications for the Tax Credit for research activities will be accepted starting on Wednesday 3/1/2023 at 9am HST.

The link is: (note: the form is hosted on an external site and will remain inactive until the open period)

https://www.tfaforms.com/5042147

IMPORTANT NOTE: For the past 2 years, the $5 million cap was reached almost as soon as the online applications were opened. For 2023, the statute has not been amended so the procedure will be the exact same.

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

The application period for 2023 is 3/1/23 to 3/31/23. The application fee for 2023 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 The tax credit will be repealed from statute on December 31, 2024.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 files.hawaii.gov/tax/forms/2021/n346a_i.pdf

    2. a. The date a completed, signed form is received by DBEDT will be considered the applicants application date.

  2. 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, 2023. 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: [email protected]