Chapter 235 — Chapter 235

PART I. GENERAL PROVISIONS §235-1 Definitions. "Biotechnology" means fundamental knowledge regarding the function of biological systems from the macro level to the molecular and subatomic levels that has application to development including the development of novel products, serv…

§235-10 REPEALED. L 1978, c 173, §2(8).

§235-100 Persons in military service. The collection from any person in the military service of any tax on the income of such person, whether falling due prior to or during the person's period of military service (which term, as used in this section, shall have the same meaning a…

§235-101 Federal returns and assessments, when copies are required. (a) In prescribing the form of return the department of taxation may require that a person who is required to file a federal income tax return include in the person's return a reconciliation of the return with th…

§235-102 Records and special returns. (a) Records. Every person liable to any tax imposed by this chapter or for the collection or deduction thereof at source, shall keep full, complete, regular, and accurate books of account in which all the person's transactions shall be entere…

§235-102.5 Income check-off authorized. (a) Any individual whose state income tax liability for any taxable year is $3 or more may designate $3 of the liability to be paid over to the Hawaii election campaign fund, any other law to the contrary notwithstanding, when submitting a …

§235-103 REPEALED. L 2019, c 17, §2.

§235-104 Penalties. Penalties and interest shall be added to and become part of the tax, when and as provided by sections 231-39 and 235-97. The penalties and interest provided by section 231-39 shall apply to employers as well as taxpayers. [L Sp 1957, c 1, pt of §2; Supp, §121-…

§235-105 Failure to keep records, render returns, or make reports by responsible persons. The penalties provided by sections 231-34, 231-35, and 231-36 shall apply to any person, whether acting as principal, agent, officer, or director for oneself, itself, or another person and s…

§235-106 REPEALED. L 1995, c 92, §23.

§235-107 Procedure upon failure to file return. If any taxpayer or employer liable to make and file a return under this chapter fails, neglects, or refuses to make and file a return as required within the time prescribed, or declines to authenticate a return if made, the departme…

§235-108 Audit of return; procedure; additional taxes. (a) Audit. The director of taxation or a responsible person designated by the director to act in the premises for the purpose of verification or audit of a return made by the taxpayer or employer, or for the purpose of making…

§235-109 Jeopardy assessments, security for payment, etc. Section 231-24 shall apply to the taxes imposed by this chapter, both in respect of taxpayers and employers. [L Sp 1957, c 1, pt of §2; Supp, §121-43; HRS §235-109]

§235-109.5 REPEALED. L 2017, c 3, §5.

§235-11 REPEALED. L 1988, c 107, §1.

§235-110 Credits and refunds. (a) If the taxpayer has paid as an installment of the tax more than the amount determined to be the correct amount of such installment, the overpayment shall be credited against the unpaid installments, if any. If the amount already paid, whether or …

§235-110.2 Credit for school repair and maintenance. (a) There shall be allowed to each taxpayer licensed under chapter 444, 460J, or 464, who is subject to the tax imposed by this chapter, and does not owe the State delinquent taxes, penalties, or interest, a credit for contribu…

§235-110.3 REPEALED. L 2016, c 202, §3.

§235-110.31 REPEALED. L 2016, c 202, §6.

§§235-110.4 and 235-110.45 REPEALED. L 2007, c 9, §§23, 24.

§235-110.46 REPEALED. L 2017, c 3, §6.

§235-110.5 REPEALED. L 1987, c 40, §2.

§235-110.51 Technology infrastructure renovation tax credit. (a) There shall be allowed to each taxpayer subject to the taxes imposed by this chapter, an income tax credit which shall be deductible from the taxpayer's net income tax liability, if any, imposed by this chapter for …

§235-110.6 Fuel tax credit for commercial fishers. (a) Each principal operator of a commercial fishing vessel who files an individual or corporate net income tax return for a taxable year may claim an income tax credit under this section against the Hawaii state individual or cor…

§235-110.7 Capital goods excise tax credit. (a) There shall be allowed to each taxpayer subject to the tax imposed by this chapter a capital goods excise tax credit, which shall be deductible from the taxpayer's net income tax liability, if any, imposed by this chapter for the ta…

§235-110.8 Low-income housing tax credit. [Repeal and reenactment on December 31, 2027. L 2021, c 226, §2.] (a) As modified herein, section 42 (with respect to low-income housing credit) of the Internal Revenue Code shall be operative for the purposes of this chapter as provided …

§235-110.9 High technology business investment tax credit. (a) There shall be allowed to each taxpayer subject to the taxes imposed by this chapter a high technology business investment tax credit that shall be deductible from the taxpayer's net income tax liability, if any, impo…

§235-110.91 Tax credit for research activities. [Section repealed January 1, 2030. L 2024, c 139, §2.] (a) Section 41 (with respect to the credit for increasing research activities) and section 280C(c) (with respect to certain expenses for which the credit for increasing research…

§235-110.92 REPEALED. L 2007, c 9, §25.

§235-110.93 Important agricultural land qualified agricultural cost tax credit. (a) There shall be allowed to each taxpayer an important agricultural land qualified agricultural cost tax credit that may be claimed in taxable years beginning after the taxable year during which the…

§235-110.94 REPEALED. L 2016, c 258, §5.

§235-110.97 REPEALED. L 2019, c 267, §3.

§235-111 Limitation period for assessment, levy, collection, or credit; net operating loss carrybacks. (a) General rule. The amount of income taxes imposed by this chapter (also the amount of income taxes imposed by any preceding law of the State) and the liability of any employe…

§235-111.5 REPEALED. L 2021, c 117, §32.

§235-112 Time for assessment of deficiency attributable to gain upon conversion. (a) If a taxpayer has made the election provided in section 1033(a)(2)(A) of the Internal Revenue Code, the rules stated in this section apply. (b) The statutory period for the assessment of any defi…

§235-113 Time for assessment of deficiency attributable to gain upon sale of a residence. (a) If after December 31, 1957, a taxpayer during a taxable year sells at a gain property used by the taxpayer as the taxpayer's principal residence, the rules stated in this section apply. …

APPEAL §235-114 Appeals. (a) Any person aggrieved by any assessment of the tax or liability imposed by this chapter may appeal from the assessment in the manner and within the time hereinafter set forth. Appeal may be made either to the taxation board of review or to the tax appe…

GENERAL PROVISIONS §235-115 Assessments, etc., prima facie proof. The effect of the notices of assessments and records prepared by or under the authority of the department of taxation shall be as set forth in sections 231-20 and 235-107. [L Sp 1957, c 1, pt of §2; am L Sp 1959 2d…

§235-116 Disclosure of returns unlawful; penalty. All tax returns and return information required to be filed under this chapter shall be confidential, including any copy of any portion of a federal return that may be attached to a state tax return, or any information reflected i…

§235-117 Reciprocal supplying of tax information. Notwithstanding section 235-116, the department may permit the Secretary of the Treasury of the United States, the Commissioner of Internal Revenue, the Multistate Tax Commission, or the proper officer of any state or territory im…

§235-118 Rules and regulations. Except as otherwise provided in this chapter, the department of taxation shall prescribe and have printed all needful rules and regulations for the enforcement of this chapter and such rules and regulations so made shall have the force and effect o…

§235-119 Taxes, state realizations. All income taxes shall be for the use of the State and shall be paid into the state treasury at such times as the director of finance shall direct. [L Sp 1957, c 1, pt of §2; am L Sp 1959 2d, c 1, §14; am L 1963, c 114, §1; Supp, §121-52; HRS §…

§235-12 REPEALED. L 2018, c 18, §50.

§235-12.2 REPEALED. L 1988, c 64, §2.

§235-12.5 Renewable energy technologies; income tax credit. (a) Each individual or corporate taxpayer that files an individual or corporate net income tax return for a taxable year may claim a tax credit under this section against the Hawaii state individual or corporate net inco…

§235-122 Taxation of an S corporation and its shareholders. (a) An election under section 1361(b)(3) and (e), or 1362(a) of the Internal Revenue Code shall be effective for the purposes of this chapter. Evidence of a valid election for federal purposes shall be submitted to the d…

§235-129 Tax credits. (a) For purposes of section 235‑55, each resident shareholder shall be considered to have paid a tax imposed on the shareholder in an amount equal to the shareholder's pro rata share of any net income tax paid by the S corporation to a state that does not me…

§235-16 REPEALED. L 2003, c 135, §9.

§235-16.5 REPEALED. L 2015, c 120, §4.

§235-17 Motion picture, digital media, and film production income tax credit. [Repeal and reenactment on January 1, 2033. L 2022, c 217, §4.] (a) Any law to the contrary notwithstanding, there shall be allowed to each taxpayer subject to the taxes imposed by this chapter, an inco…