Article: 50238
Overview
If you are a commercial fisher operating in Hawaii, you may be eligible to claim the Fuel Tax Credit for Commercial Fishers using Form N-163 on your Hawaii individual income tax return. This credit helps offset fuel taxes paid on diesel or gasoline used directly in commercial fishing operations.
Eligibility Criteria
To qualify for this credit, you must meet the following requirements:
- You are the principal operator of a commercial fishing vessel (i.e., you earn at least 51% of your gross income from commercial fishing).
- You purchased and used diesel or gasoline in the direct operation of a commercial fishing vessel.
- You are filing a Hawaii income tax return (Forms N-11, N-15, N-20, N-30, N-35, N-40, or N-70NP).
Charter fishing, recreational use, and other non-profit or non-commercial activities do not qualify for this credit.
Credit Amounts
- Diesel Fuel: $0.01 credit per gallon used.
- Gasoline: Varies by county — $0.325 to $0.400 per gallon.
If the total credit exceeds your income tax liability, the excess amount may be refunded.
Add Form N-163
To add the Form N-163:
- Go to State Taxes.
- Click I’d like to see the forms I’ve filled out or search for a form.
- Click Hawaii to expand the Forms listing.
- Click on the Credits tab.
- Select N-163 – Fuel Tax Credit for Commercial Fishers to add and open the form.
- Enter your information and click Save.