Capital Goods Excise Tax Credit

Hawaii's Capital Goods Excise Tax Credit reimburses businesses for the general excise tax or use tax they pay on the purchase of a solar electric system. To be eligible for the credit, the property shall be depreciable property, used in the taxpayer's trade or business in Hawaii, and was subject to Hawaii's general excise or use tax at the rate of 4 percent upon acquisition. The credit is equal to 4 percent of the cost of the solar electric system and is refundable. The credit must be claimed within 12 months of the close of the taxable year. Tax Form N-312 and instructions are accessible on the state's Department of Taxation's Web site (http://www.state.hi.us/tax/taxforms.html)