Instructions for Form N-350 Cesspool Upgrade, Conversion or Connection Income Tax Credit - Hawaii

Form N-350 Cesspool Upgrade, Conversion or Connection Income Tax Credit - Hawaii

This document contains official instructions for Form N-350 , Cesspool Upgrade, Conversion or Connection Income Tax Credit - a form released and collected by the Hawaii Department of Taxation. An up-to-date fillable Form N-350 is available for download through this link.

FAQ

Q: What is Form N-350?A: Form N-350 is a tax form used in Hawaii to claim an income tax credit for upgrading, converting, or connecting a cesspool.

Q: What is a cesspool?A: A cesspool is an underground tank or pit used for the disposal of wastewater or sewage.

Q: What is the purpose of the income tax credit?A: The income tax credit is designed to encourage homeowners in Hawaii to upgrade their cesspools to more environmentally friendlywaste disposal systems.

Q: Who is eligible for the income tax credit?A: Homeowners who have upgraded, converted, or connected their cesspools between January 1, 2016, and December 31, 2025, are eligible for the tax credit.

Q: How much is the income tax credit?A: The tax credit is equal to 50% of the costs incurred for the upgrade, conversion, or connection, up to a maximum of $10,000 per qualified improvement.

Q: How do I claim the income tax credit?A: To claim the tax credit, you need to complete and file Form N-350 with your Hawaii state tax return.

Q: Are there any documentation requirements?A: Yes, you must provide documentation that proves the costs incurred for the cesspool upgrade, conversion, or connection, such as receipts or invoices.

Q: What is the deadline for filing Form N-350?A: Form N-350 must be filed with your Hawaii state tax return by the due date, which is usually April 20th for most taxpayers.

Q: Can I claim the income tax credit for multiple cesspool upgrades?A: Yes, you can claim the tax credit for each qualified improvement, as long as each upgrade, conversion, or connection meets the eligibility requirements.

Q: What if I have already claimed the income tax credit in a previous year?A: If you have already claimed the tax credit in a previous year, you cannot claim it again for the same improvement.