Instructions for Form N-586 Tax Credit for Low-Income Housing - Hawaii

Form N-586 Tax Credit for Low-Income Housing - Hawaii

This document contains official instructions for Form N-586 , Tax Credit for Low-Income Housing - a form released and collected by the Hawaii Department of Taxation. An up-to-date fillable Form N-586 is available for download through this link.

FAQ

Q: What is Form N-586?A: Form N-586 is a tax credit form for low-income housing in Hawaii.

Q: Who is eligible for the tax credit?A: Low-income housing projects in Hawaii that meet certain requirements are eligible for the tax credit.

Q: What are the requirements for the tax credit?A: The low-income housing project must meet specific criteria, including income limits for tenants and compliance with certain regulations.

Q: When is the deadline to file Form N-586?A: The deadline to file Form N-586 is usually April 20th of the year following the tax year.

Q: What documentation do I need to include with Form N-586?A: You may need to include documentation such as the project's financial statements, tenant income certifications, and rent rolls.

Q: What is the purpose of the tax credit?A: The tax credit aims to incentivize the development and maintenance of low-income housing in Hawaii.

Q: Can the tax credit be carried forward or backward?A: No, the tax credit cannot be carried forward or backward.

Q: Is the tax credit refundable?A: No, the tax credit is not refundable. It can only be used to offset the taxpayer's Hawaii income tax liability.

Q: What happens if I don't meet the requirements for the tax credit?A: If you don't meet the requirements, you may not be eligible for the tax credit and may have to pay any claimed credit back.