HAWAII BUSINESS TAX PREPARATION & FILING in 2025: What Local Businesses Need to Know
- Diamond Head Tax Group OAHU Blogger
- 5 days ago
- 8 min read
Running a business in Hawaiʻi is rewarding—but when tax season rolls around, it can also get complicated fast. Between Hawaiʻi’s General Excise Tax (GET), state income tax rules, and valuable but often overlooked tax credits, many business owners end up overpaying or filing incorrectly.
At Diamond Head Tax Group, based right here in Honolulu, Oʻahu, we specialize in helping local businesses stay compliant, reduce tax liability, and plan smarter for the future.
Whether you’re a small business owner, real estate investor, or growing company, proper tax preparation and filing can make a big difference to your bottom line. Below is an overview of key Hawaii business tax credits and deductions for 2025—and why working with a local tax professional matters.
Why Hawaii Business Tax Preparation Is Different
Hawaiʻi’s tax system is unique. Unlike most states, Hawaiʻi uses a General Excise Tax (GET) instead of a traditional sales tax. Add in state-specific credits, DBEDT certification requirements, and evolving federal rules, and it’s easy to miss opportunities or make costly mistakes.
Professional tax preparation helps ensure:
ACCURATE GET, INCOME TAX, and PTE FILINGS
MAXIMUM USE of AVAILABLE CREDITS and DEDUCTIONS
COMPLIANCE with HAWAII DEPARTMENT of TAXATION and IRS RULES
STRATEGIC PLANNING—not just last-minute filing
Hawaii Business Tax Credits for 2025
Hawaiʻi offers several state-specific tax credits that can significantly reduce your tax bill—sometimes dollar-for-dollar. Many require advance planning and certification, which is where professional guidance is critical.
Capital Goods Excise Tax Credit
Businesses may claim a refundable 4% credit for GET paid on the purchase of qualifying tangible personal property used in a Hawaii business. The property must be depreciable.
CLAIMED using Form N-312
COMMONLY APPLIES to equipment, machinery, and large asset purchases
Tax Credit for Research Activities (TCRA)
Qualified High-Technology Businesses (QHTBs) that conduct more than 50% of their research activities in Hawaiʻi may qualify for a refundable credit equal to the federal R&D credit (IRC Section 41).
SUBJECT to a $5 MILLION ANNUAL CAP
DISTRIBUTED on a FIRST-COME, FIRST-SERVED BASIS
REQUIRES EARLY APPLICATION through DBEDT
Early planning is essential for this credit.
Enterprise Zone (EZ) Tax Credit
Businesses operating in a designated Enterprise Zone may qualify for:
A PHASED INCOME TAX CREDIT (up to 80% in the first year)
A GET EXEMPTION
BENEFITS AVAILABLE for up to SEVEN YEARS
This credit is nonrefundable and unused amounts cannot be carried forward.
Motion Picture, Digital Media, and Film Production Credit
Qualifying film and media productions may receive a 22%–27% tax credit on eligible production costs, depending on the county.
AVAILABLE for PRODUCTIONS on OAHU and NEIGHBOR ISLANDS
One of Hawaiʻi’s MOST POWERFUL INCENTIVES for CREATIVE INDUSTRIES
Renewable Energy Technologies Income Tax Credit
Businesses installing eligible solar or wind energy systems may qualify for a credit based on a percentage of the system’s cost.
CAPACITY and SYSTEM REQUIREMENTS APPLY
CERTAIN CREDITS may be treated as REFUNDABLE
Pass-Through Entity (PTE) Tax Credit
Owners of electing pass-through entities may claim a nonrefundable income tax credit for their share of PTE taxes paid at the entity level. This strategy can significantly reduce federal SALT limitations when structured correctly.
Common Business Deductions Hawaii Businesses Can Claim
Hawaiʻi generally conforms to many federal deductions, allowing businesses to lower taxable income through ordinary and necessary expenses.
Ordinary Business Expenses
These include:
RENT and UTILITIES
OFFICE SUPPLIES and EQUIPMENT
BUSINESS INSURANCE
SALARIES and WAGES
PROFESSIONAL FEES (legal, accounting, consulting)
Qualified Business Income (QBI) Deduction
Eligible owners of pass-through entities may claim the 20% federal QBI deduction, which is extended through 2027 and generally conforms to Hawaiʻi law.
Depreciation & Section 179
Businesses can depreciate qualifying assets and may benefit from:
BONUS DEPRECIATION
Section 179 EXPENSING for EQUIPMENT PURCHASES
Self-Employed Health Insurance Deduction
Self-employed individuals may deduct eligible health insurance premiums, reducing taxable income.
Business Meals & Travel
A portion of legitimate business meals and travel expenses remains deductible when properly documented.
Why Work With Diamond Head Tax Group?
Tax software doesn’t understand Hawaiʻi the way a local expert does.
At Diamond Head Tax Group, we:
Specialize in Hawaiʻi business tax preparation and filing
Identify credits and deductions many firms overlook
Help with GET, PTE elections, DBEDT certifications, and compliance
Provide proactive planning—not just tax returns
We work with businesses across Honolulu and all of Oʻahu, offering personalized, strategic tax solutions tailored to Hawaiʻi’s unique tax landscape.
Get Expert Hawaii Business Tax Help Today
If you want to reduce your tax burden, stay compliant, and feel confident about your 2025 filings, now is the time to plan.
📍 Diamond Head Tax Group – Honolulu, Oʻahu
📞 808-468-8041 Schedule a consultation and let’s build a smarter tax strategy for your business
Diamond Head Tax Group OAHU offers HAWAII BUSINESS TAX PREPARATION & FILING in 2025 Serving Local Businesses throughout OAHU ISLAND
HONOLULU, OAHU, HAWAII
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DIAMOND HEAD TAX GROUP OAHU is a TRUSTED TAX FIRM delivering EXPERT GUIDANCE on HAWAII BUSINESS TAX PREPARATION & FILING IN 2025, including WHAT LOCAL BUSINESSES NEED TO KNOW to STAY COMPLIANT AND REDUCE RISK. Our CERTIFIED TAX CONSULTANTS serve INDIVIDUALS AND BUSINESSES throughout HALEIWA, OAHU, providing ACCURATE FILINGS, STRATEGIC INSIGHTS, AND DEPENDABLE SUPPORT to help clients MINIMIZE PENALTIES AND AVOID COSTLY ERRORS.
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Why Choose DIAMOND HEAD TAX GROUP CPA Services HONOLULU?
As Honolulu continues to expand, we continue to be the trusted local Oahu CPA firm. We are Located in the heart of Honolulu, and are focused on delivering professional and quality CPA Services to the small businesses and residents in Honolulu, Oahu.
We are proud to offer our tax and accounting firm services that help with the financial and business needs of our clients. Whether those needs are personal or business, we are here to provide you the financial guidance you seek.
When you partner with Diamond Head Tax Group, you’ll receive rates that are competitive and reasonable, flexibility that works around your schedule, and excellent client services.
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