HAR § 18-235-12.2 — Energy conservation devices for hot water heaters; income tax credit

(a) Limitation of credit. Section 235-12.2, HRS, provides a tax credit against the tax imposed by chapter 235, HRS, to resident individuals and corporations who have installed energy conservation devices for hot water heaters. (b) Claim for credit. (1) Credit shall be claimed for the year the insulation material was purchased and installed in this State. Hence, where the insulation material is purchased in one year and installed in another, the credit shall be allowed in the year of installation. (After 12/31/77 but before 12/31/84.) (2) The claim for tax credit, not to exceed $30.00 shall be claimed against the income tax liability and any remaining credit shall be carried forward and used in subsequent taxable years until exhausted. The claim shall contain the necessary information provided for on the form and shall be attached to the income tax return in the year first installed and subsequent taxable years for which a tax credit is claimed. The forms provided are: N-159 Individual taxpayer; N-159-A Taxpayers who are members of a partnership, estate or trust, or small business corporation; and N-307 Corporation (3) Taxpayer shall maintain proper supporting documents to substantiate the cost of the energy conservation device for the period the claim remains valid and upon request shall submit such documents to the department of taxation.