Fillable Form N-163 - Fuel Tax Credit For Commercial Fishers (Page 2 of 2) in pdf

FORM N-163

(REV. 2012)

PAGE 2

GENERAL INSTRUCTIONS:

If the properly claimed and allowed credit exceeds the amount

of the income tax due and payable from the principal operator, the

Note: If you are claiming the Ethanol Facility Tax Credit, no

excess will be refunded to the principal operator under section 235-

other credit can be claimed for the same taxable year.

110.6, HRS.

Note: Effective January 1, 2012, civil unions are recognized in

Claims for the credit, including any amended claims thereof,

Hawaii (Act 1, Session Laws of Hawaii 2011). Hawaii’s laws that

must be filed on or before the end of the twelfth month following the

apply to a husband and wife, spouses, or person in a legal marital

close of the indicated taxable year.

relationship shall be deemed to apply to partners in a civil union

with the same force and effect as if they were “husband and wife”,

Attach Form N-163 to applicable Form N-11, N-15, N-20, N-30,

“spouses”, or other terms that describe persons in a legal marital

N-35, N-40, or N-70NP.

relationship.

Note: Commercial fishers that use alternative fuels may obtain

A principal operator of a commercial fishing vessel who files an

a refund of the fuel taxes paid by filing Form M-36, Combined Claim

income tax return for the taxable year, as indicated on Form N-163,

for Refund of Fuel Taxes.

may be eligible for the fuel tax credit for commercial fishers. See

SPECIFIC INSTRUCTIONS:

sections 235-110.6, Hawaii Revised Statutes (HRS), and 18-235-

Line 4. Flow through of tax credit received from other entities,

110.6, Hawaii Administrative Rules.

if any. In the case of a taxpayer who is a member of a pass-through

The credit is available only to a principal operator who

entity (i.e., S corporation, partnership, estate, or trust), enter the

purchases and actually uses the fuel to operate a fishing vessel

amount of the tax credit received from the entity on line 4. Attach a

for commercial purposes. Fuel used in the operation of charter

copy of the applicable Schedule K-1 to Form N-163 when the tax

fishing boats and the like where the income is derived from fees

credit is claimed.

and sources other than from commercial fishing and fuel used in

Line 5. Form N-11, N-15, N-30, and N-70NP filers, enter the

the operation of a fishing vessel where the activity is not engaged

in for profit as provided in Internal Revenue Code section 183 do

amount on line 5 on Schedule CR, line 16 (rounded to the nearest

not qualify for the credit.

dollar).

The amount of the credit is limited to the fuel taxes imposed

Form N-40 filers, enter the amount on line 5 that is allocated

under section 243-4(a), HRS, and paid by the principal operator

to the estate or trust on Form N-40, Schedule F, line 1. Enter the

for use in the operation of the fishing vessel during the indicated

amount on line 5 that is allocated to the beneficiary on line 9 of

taxable year.

Schedule K-1, Form N-40, for each beneficiary.

A husband and wife filing separate returns, where a joint

Form N-35 filers, enter the amount on line 5 on Schedule K,

return could have been filed, shall claim only the credit to which

line 16a.

the husband and wife would have been entitled had a joint return

Form N-20 filers, enter the amount on line 5 on Schedule K,

been filed.

line 13.

FORM N-163

Form N-163 - Fuel Tax Credit For Commercial Fishers Page 2

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