Generate Hawaii Form N-312 Capital Goods Excise Tax Credit

Solution #1: To enter an asset in Part I - Computation of Tax Credit:

1. Navigate to Screen 22 Deprecation.
2. Create an asset. Enter the description and date placed in service.
3. Enter the cost of the qualifying property in the Cost or Basis field with the amount sourced to HI.
4. Scroll down to the additional information section.
5. In the sub section Hawaii Capital Goods Excess Credit (N-312) check the box for Current year Hawaii capital goods excise credit. (Code 267)

Note: The Hawaii purchase will show on the federal depreciation schedule as an asset if other depreciable assets are present on the return. The entry does not affect the federal calculations.

Solution #2: To enter information for Part II - Recapture of Capital Goods Excise Tax Credit:

1. Create an asset in Screen 17, Dispositions
2. Enter the date recapture period begins in the Date Acquired field.
3. Enter the date property ceased to be eligible capital goods excise tax credit property in the Date Sold field.
4. Scroll to the section ITC Recapture (4255).
5. Enter the applicable amounts in Original credit claimed and Recomputed credit to flow to the N-312.

Note: Additional entries for Form N-312 are found on Screen 53.424, Hawaii Other Credits. Entries in this screen are considered overrides. These entries will override the form and prevent it from generating. The best way to enter the credit, to report on the form, is to follow the steps above.