If you conducted business or earned income in Hawaii, you may be subject to Hawaii state taxes. If this applies to you, please find below the details regarding the R&D tax credit application, key tax deadlines, and extension information for 2024.
In Hawaii, businesses aiming to claim the Tax Credit for Research Activities must complete and receive approval for an application.
The deadlines for filing the Tax Credit for Research Activities are aligned with the state's income tax filing deadlines for different business entities.
In Hawaii, you may:
File your taxes online with Hawaii Tax Online
When filing by mail, ensure that your documents are postmarked by the due date.
Federal filing is required.
Amendments are not allowed.
Application Information
Hawaii's R&D tax credit program requires the filing and approval of an application to claim the credit, which is granted on a first-come, first-served basis. This credit is exclusive to "high technology" businesses and serves to lower the taxpayer's net income tax liability for the applicable taxable year.
Here is how you can apply
Here is how you can apply
Apply for the online application before the March 30th deadline.
You’ll need to complete the 2023 credit study in order to fill out the application.
Complete an online questionnaire/an annual survey as prescribed by the Department of Business, Economic Development, and Tourism by June 30.
Provide details of the qualifying expenditures, revenue and expense data, intellectual property filings, and information about related businesses.
Overview, Eligibility, Limitations, and Allocation Cap
Overview, Eligibility, Limitations, and Allocation Cap
Tax Credit for Research Activities
The Tax Credit for Research Activities 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.
Eligible Entities
C-Corporations, S-Corporations, LLCs, Partnerships
Qualified High Technology Business
The same as in Section 41(d) of the Internal Revenue Code
The development and design of computer software for ultimate commercial sale, lease, license or to be otherwise marketed, for economic consideration.
The business shall have substantial control and retain substantial rights to the resulting intellectual property.
Biotechnology
Performing arts products
Sensor and optic technologies
Ocean sciences
Astronomy
Non-fossil fuel energy-related technology
Credit Carryforward
No – Excess is refundable.
If the amount of the Hawaii credit exceeds the amount of the taxpayer’s Hawaii tax liability for the applicable tax year, the difference is refunded to the taxpayer.
Allocation Cap
The calendar year 2024 cap of $5 million has been fully allocated.
For Calendar Year 2024, the applications for the Tax Credit for Research Activities will be accepted starting on Friday, March 1, 2025, 9:00 A.M. Hawaii Time.
For the past 2 years, the $5 million cap was reached almost as soon as the online applications were opened. For 2024, the statute has not been amended so the procedure will be the exact same.
The tax credit will be repealed from statute on December 31, 2024
Hawaii Revised Statutes §235-110.91
S-Corporation / Partnership
You must file in Hawaii by April 20, 2025.
Applicable R&D Forms
Form N-346A – Certified Statement of Research and Development Costs Incurred by a Qualified High Technology Business (QHTB) and Claim of the Tax Credit for Research Activities
File the above form with the following tax forms:
Form N-35 – S-Corporation Income Tax Return
Form N-20 – Partnership Return of Income
Extension to File Taxes in Hawaii for 2024
Hawaii does not accept Federal extension forms.
Taxes owed in Hawaii for the tax year 2024 must be paid by April 20, 2025.
No separate extension filing is required in Hawaii.
Hawaii automatically grants a 6-month extension for both S-Corporation and Partnership tax returns.
S-Corporation: the extension deadline is October 20, 2025.
Partnership: the extension deadline is October 20, 2025.
Note that this extension pertains to the filing deadline, not the payment deadline.
Payment of taxes owed is still due by April 20, 2025.
C-Corporation
You must file in Hawaii by April 20, 2025.
Applicable R&D Forms
Form N-346A – Certified Statement of Research and Development Costs Incurred by a Qualified High Technology Business (QHTB) and Claim of the Tax Credit for Research Activities
File the above form with the following tax forms:
Form N-30 – Hawaii Corporation Income Tax Return
Extension to File Taxes in Hawaii for 2024
Hawaii does not accept Federal extension forms.
Taxes owed in Hawaii for the tax year 2024 must be paid by April 20, 2025.
No separate extension filing is required in Hawaii.
Hawaii automatically grants a 6-month extension for C-Corporation tax returns.
C-Corporation: the extension deadline is October 20, 2025.
Note that this extension pertains to the filing deadline, not the payment deadline.
Payment of taxes owed is still required by April 20, 2025.
Sole-Proprietorship
Sole-Proprietorship
You must file in Hawaii by April 22, 2025.
Applicable R&D Forms
Not eligible
File the above form with the following tax forms:
Form N-11 – Residents
Form N-15 – Nonresidents or Part-Year Residents
Extension to File Taxes in Hawaii for 2024
Hawaii does not accept Federal extension forms.
Taxes owed in Hawaii for the tax year 2024 must be paid by April 22, 2025.
No separate extension filing is required in Hawaii.
Hawaii automatically grants a 6-month extension for individual tax returns.
Sole-Proprietorship: the extension deadline is October 22, 2025.
Note that this extension pertains to the filing deadline, not the payment deadline.
Payment of taxes owed is still required by April 15, 2025.
References
We strive to ensure the accuracy of the information on this page, but it is not intended as tax or legal advice. Please use your own professional judgment and consult with a tax professional. Any advice you provide in connection with tax return preparation must comply in full with the requirements of IRS Circular 230.