Form N-346 Tax Credit for Research Activities - Hawaii

What Is Form N-346?

This is a legal form that was released by the Hawaii Department of Taxation - a government authority operating within Hawaii. As of today, no separate filing guidelines for the form are provided by the issuing department.

FAQ

Q: What is Form N-346?
A: Form N-346 is a tax form used in Hawaii to claim tax credit for research activities.

Q: What is the purpose of Form N-346?
A: The purpose of Form N-346 is to allow businesses in Hawaii to claim a tax credit for qualified research activities.

Q: Who is eligible to use Form N-346?
A: Businesses engaged in qualified research activities in Hawaii are eligible to use Form N-346.

Q: What are qualified research activities?
A: Qualified research activities are activities that meet certain criteria defined by the Hawaii Department of Taxation. These activities generally involve the development or improvement of products, processes, or software.

Q: How much tax credit can be claimed using Form N-346?
A: The tax credit amount is determined based on the qualified research expenses incurred by the business. The credit can be up to 20% of the expenses.

Q: What is the deadline for filing Form N-346?
A: Form N-346 must be filed with the Hawaii Department of Taxation by the due date of the business's tax return, which is generally April 20th of the following year.

Q: What supporting documentation is required for Form N-346?
A: Businesses must provide a detailed description of the qualified research activities, as well as documentation of the expenses incurred.

Q: Can the tax credit be carried forward or transferred?
A: Yes, any unused tax credit can be carried forward for up to 7 years or transferred to another taxpayer.

Q: Are there any limitations or restrictions on the tax credit?
A: Yes, there are limitations on the amount of tax credit that can be claimed in a single year, as well as restrictions on the types of expenses that qualify for the credit. It is recommended to consult with a tax professional for specific guidance.