IAL Tax Credit Information

To apply for the Important Agricultural Land Qualified Agricultural Cost Tax Credit, businesses must complete all parts of the Request for Certification of IAL Costs form on company letterhead and return the form to the Hawaii Department of Agriculture at the address below:

Hawaii Department of Agriculture
1428 S. King Street
Honolulu, HI  96814
Attn:  Planning Office

If the application is approved, HDOA will send a signed N-344 form to the applicant.  This form must be attached to the taxpayer’s tax return when it is filed.

Once certified, applicants claiming credits must also submit annually the HDOA Outcome Assessment Report.  The assessment form must be filed before the end of the taxable year following the close of the taxable year in which the credit was claimed. For example, a company’s tax year is 1/1/10-12/31/10 and during the year the company made a qualified IAL expenditure, received certification for the cost, and included the credit in their 2010 tax year return. The report must be filed on or before 12/31/11.

Failure to file the report within the prescribed time period will cause the Hawaii Department of Agriculture to inform the Department of Taxation that the certification of the credits is no longer valid.

The Department of Taxation Form to claim the IAL credit (N-344) may be found on the Department of Taxation website at the following website:

Hawaii Tax Forms (Alphabetical Listing)

 

For questions regarding this tax credit, please e-mail: hdoa.planning@hawaii.gov