Hawaii School Repairs and Maintenance Fund
The Hawaii School Repairs and Maintenance Fund allows licensed professionals in Hawaii to claim a tax credit for in-kind services contributed to the repair and maintenance of public schools. This credit is designed to support the upkeep of public school facilities by incentivizing professional contributions.
Eligibility and Credit Details
- Eligible taxpayers include licensed contractors, pest control operators, professional engineers, architects, surveyors, and landscape architects who are subject to Hawaii’s income tax.
- The credit is equal to 10% of the value of in-kind services contributed.
- The aggregate value of contributions claimed by a taxpayer cannot exceed $40,000 per taxable year.
- The credit is nonrefundable and reduces the taxpayer’s net income tax liability for the year.
How to Claim the Credit
Taxpayers must complete and attach Form N-330 to their Hawaii income tax return to claim the credit. The form is used to calculate the credit amount based on services provided.
- Line 12: Enter the value of in-kind services contributed.
- Line 13: Enter any carryover of unused credit from prior years.
- Line 14: Add lines 12 and 13 to determine the tentative current year credit.
Additionally, if you are part of a partnership, S Corporation, estate, or trust, you may need to report your distributive share of the credit using Schedule K-1 (Form N-20 or Form N-35), depending on your entity type.
Software Assistance
When filing your Hawaii state tax return using Online Taxes (OLT) software, you can add Form N-330 by navigating to the State section, selecting Credits, and choosing Form N-330 – School Repair and Maintenance Tax Credit. Follow the on-screen instructions to complete the form.
Important Notes
- Taxpayers must not owe any delinquent taxes, penalties, or interest to be eligible for the credit.
- The credit is only available for services performed in Hawaii.
- Form N-330 must be attached to your Hawaii income tax return along with Schedule CR if required.
Source:
Form N-330 Instructions
Schedule CR Instructions
Schedule K-1 (Form N-40) Instructions
Disclaimer: Always verify details with official forms and instructions from the Hawaii Department of Taxation or Federal/State Department of Revenue. OLT (Online Taxes) provides guidance based on retrieved context but does not guarantee accuracy for all individual circumstances.