Hawaii General Excise/Use Tax Exemption For Certified or Approved Housing Projects

General Excise/Use Tax Exemption For Certified or Approved Housing Projects
Form G-37 (Rev. 2022) General Excise/Use Tax Exemption for Certified of Approved Housing Projects
Clear Form
	FORM

G-37

(REV. 2023)	

STATE OF HAWAII — DEPARTMENT OF TAXATION

General Excise/Use Tax Exemption For Certified or
Approved Housing Projects

G37_I 2023A 01 VID01

(Section 46-15.1 or 201H-36, Hawaii Revised Statutes (HRS))

Amended

Name of individual, trust, estate, partnership, association, company, or corporation

Hawaii Tax Identification No.

PRINT OR TYPE

GE ___ ___ ___ - ___ ___ ___ - ___ ___ ___ ___- ___ ___
Name under which business is operated

Type of Business/Service

Business address (Number and Street)

Contract Amount

City, Island

Postal / Zip Code

$
ED Code 100 Amount

Amount of Tax Exempted

$

$

Project Name

Contract Number

Project Address

Tax Map Key Number

Contract Effective Date

The entity indicated above is contractually participating  (Check the appropriate blocks to complete this sentence.)
in the (check applicable)		
	planning	
design	
financing	

being developed by a (check one)	

	construction	
sale	
rental of	
affordable units	

non-profit entity	
limited distribution mortgagor	
private developer	
public agency	

pursuant to (check one)
Section 46-15.1, HRS
Section 201H-36, HRS
Act 39, SLH 2018
(Sec. 201H-36(a)(5), HRS)
Emergency Proclamation

The entity indicated above will import property, services, or contracting from the unlicensed sellers identified in Schedule A for use
specifically related to the above-named project.  The landed value of the imported property, services, or contracting is $_______________
and is excluded from the imposition of the use tax pursuant to section 238-3(j), HRS.  (Attach Schedule A.)

~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ DECLARATION ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
I declare under the penalties set forth in section 231-36, HRS, that this exemption and attached schedules, if any, are prepared in accordance with the
provisions of section 46-15.1 or 201H-36, HRS, and the rules issued thereunder. It is further understood that the misuse of this exemption will lead to its
revocation and/or the imposition of penalties provided by law.

Signature of Taxpayer or Authorized Agent (General Contractor/Developer)		

Type or Print Name	

Contact Phone Number	

Date

Type or Print Title (Owner, Partner or Member, Officer, or Duly Authorized Agent)

See the reverse side for filing instructions
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ CERTIFICATION~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

This is to certify that the entity indicated above is contractually participating in the above mentioned project.
Certified
Signature of Certifying Officer	               

Date

Type or Print Name and Title	     

Name of Certifying County or State Agency

ID NO 01

FORM G-37
(REV. 2023)

FORM G-37
(REV. 2023)

GENERAL INSTRUCTIONS

1.	General Rule. A qualified entity receiving
gross income for the planning, design, financing,
construction, sale or lease in the State of a housing project which has been certified or approved
under section 46-15.1 or 201H-36, HRS, may file
a General Excise/Use Tax Exemption For Certified or Approved Housing Projects (Form G-37).
A qualified entity shall file a separate Form G-37
for each housing project for which this exemption
is approved by HHFDC or any of the respective
counties.
A qualified entity importing any property,
services, or contracting to be used in a certified
or approved housing project may file Form G-37.
The HHFDC or any of the respective counties may certify for exemption from general excise taxes any qualified entity involved with a
newly constructed or rehabilitated project development under section 46-15.1 or 201H-36, HRS.
Section 201H-36, HRS, is amended to include contracts that are approved or certified
from July 1, 2018 to June 30, 2030, and developed under a contract described in section 1042(i)(2) by a qualified person or firm to provide affordable rental housing through new construction
or substantial rehabilitation . The allowable general excise and use tax costs have been changed
from $7,000,000 to $30,000,000 per year in the
aggregate and shall apply to contracting only.
The amendments made to section 201H-36,
HRS, apply retroactively to taxable years beginning after December 31, 2017.
2.	When to Prepare Form G-37. Qualified entities shall prepare Form G-37 upon final execution of the contract for construction or moderate
or substantial rehabilitation of an eligible housing
project and submit Form G-37 with the required
supporting documentation (see chapter 15-306,
Hawaii Administrative Rules (HAR) for more information) to HHFDC or the respective county for
certification. A cumulative list of licensed suppliers and subcontractors is to be submitted by the
developer or general contractor with Form G-37.
Inclusion of a supplier or subcontractor on this
list will not serve to certify the listed supplier or
contractor for the exemption. The developer or
general contractor of an eligible housing project shall also submit Forms G-37 on behalf of
all subcontractors, material houses, real estate
sales agencies, and other entities involved with
the planning, design, financing, construction, or
sale of the housing project to HHFDC or the respective county for certification.
3.	Where to File Form G-37. Submit this form
to the certifying agency for approval. After certification by HHFDC (677 Queen Street, Suite 300,
Honolulu, HI 96813) or the respective county,
the certifying agency will file the original copy of
Form G-37 with the Oahu Office Audit Branch
Chief. A copy will be retained by the governmental agency certifying or approving the housing
project, and a copy will also be given to the qualified entity for its records.
4.	Exemption from the General Excise Tax
(GET). The exemption shall be claimed on the
general excise tax return under column b and
in Part I on Schedule GE (Form G-45/G-49),
Schedule of Exemptions and Deductions, attached to the tax return.
The contractor shall also report the amounts
paid to subcontractors doing contracting work
as defined in section 237-6, HRS, as a subcontractor exemption in column b and on Schedule
GE Parts I and III. The subcontractor shall then
report the amount they receive from the general

contractor on their GET returns and claim an exemption in column b and Schedule GE, up to the
amount approved by HHFDC on the G-37 with
the subcontractor/material supplier’s name on it.
For example: The general contractor receives a certified Form G-37 from HHFDC for:
•	 Contract amount - $100,000
•	 ED Code 100 Amount - $60,000
•	 Amount of Tax exempted - $2,400
Of the $100,000 the general contractor receives for the
contract from his customer, he pays his subcontractors
$40,000. The general contractor is to submit a separate Form G-37 for each of his licensed subcontractors
that are working on this project. The general contractor
should file his G-45/G-49 returns reporting $100,000 as
gross contracting income in column a and $100,000 as
an exemption in column b. On Schedule GE, the general contractor should report $60,000 in Part I 10/100,
$40,000 in Part I 10/148, and complete Part III with the
required subcontractor information.
The subcontractor should report the amount they receive from the general contractor, $40,000 as gross contracting income on their G-45/G-49 returns and claim an
exemption for the certified G-37 amount in column b and
on Schedule GE Part I 10/100.

5.	 Contract vs. ED Code 100 Amount. Enter
the total contract amount in the space provided. Enter in the space provided “ED Code 100
Amount,” the amount of the total contract which
is qualified under section 237-29, HRS, or 2383(j), HRS, and chapter 15-306, HAR, that you are
requesting an exemption for. This amount should
not include amounts paid to subcontractors doing contracting work as defined in section 2376, HRS, or registered specialty contractors. In
addition, equipment or tools that are purchased
by the contractor for use during the contract and
retained by the contractor as the contractor’s assets do not qualify as exempt for general excise
tax purposes. Section 15-306-2, HAR defines “allowable construction costs” to mean:
	

[E]xpenses incurred by a contractor, for contracting, services and materials which are to be incorporated (in such a form as to be perceptible
to the senses) into, or used completely by the
contractor in, the development and construction
of real property improvements and fixtures for a
newly constructed, or moderately or substantially
rehabilitated eligible housing project that are associated with the residential portion of the project, or that are incidental or de minimis nonresidential uses within the project.

If the full approved exemption amount is not
used on the exempt project, the exemption is limited to the amount actually used on the project.
6.	 Amount of Tax Exempted. Enter the amount
of tax that you are requesting an exemption for
that qualifies under section 237-29, HRS.
7.	 Exclusion from the Use Tax. The use tax is
meant to complement the general excise tax. The
use tax is an excise tax on the use in Hawaii of
imported property, services, or contracting purchased from one who is not licensed to do business in Hawaii.
The use of any property, services, or contracting related to the certified or approved housing project is not subject to the use tax. The exemption applies to the property, services, or contracting purchased from an unlicensed seller for
a qualified project. If the full exemption amount
is not used on the exempt project, the exemption is limited to the amount actually used on the
project.

If the qualified entity is importing any property, services, or contracting for use in the certified or approved housing project from an unlicensed vendor, the qualified entity must complete Schedule A, List of Unlicensed Suppliers
and Subcontractors. If a business on this list is
determined by the Department of Taxation to be
subject to general excise tax on any part of the
purchase listed by the qualified entity, the unlicensed seller may use a copy of this Schedule
A as evidence of exemption certification of the
sale to the qualified entity of property, services,
or contracting qualifying for the exemption under
sections 237-29 and 238-3(j), HRS. This deemed
certification is subject to verification by the Department of Taxation. The qualified entity may
prepare and submit a separate Schedule A for
each unlicensed supplier or subcontractor, if the
entity anticipates providing a copy of the certification to the unlicensed seller and doesn’t want to
disclose its purchases from other sellers.
8.	 Failure to File Form G-37. The certified Form
G-37 must be first filed with the Oahu Office Audit Branch Chief, otherwise, any amount claimed
on the general excise tax return as an exemption
under section 237-29, HRS, shall be disallowed.
9.	Section References. The pertinent parts of
sections 46-15.1 and 201H-36, HRS, referred to
above are as follows:
	

§46-15.1 Housing; county powers. (a) Any law
to the contrary notwithstanding, any county shall
have and may exercise the same powers, subject to applicable limitations, as those granted
the Hawaii housing finance and development
corporation pursuant to chapter 201H insofar
as those powers may be reasonably construed
to be exercisable by a county for the purpose of
developing, constructing, and providing low-and
moderate-income housing; . . . provided further
that county projects shall be granted an exemption from general excise or receipts taxes in the
same manner as projects of the Hawaii housing
finance and development corporation, pursuant
to section 201H-36;

	

§201H-36 Exemption from general excise taxes. (a) In accordance with section 237-29, the
corporation may approve and certify for exemption from general excise taxes any qualified person or firm involved with a newly constructed, or
moderately or substantially rehabilitated project:

	

(b) To obtain certification for exemption under
this section, rental housing projects shall, unless
exempted by the corporation, enter into a regulatory agreement with the corporation to ensure
the project’s continued compliance with the applicable eligibility requirements set forth in subsection (a),

	

(c) All claims for exemption under this section
shall be filed with and certified by the corporation
and forwarded to the department of taxation. Any
claim for exemption that is filed and approved,
shall not be considered a subsidy for the purpose
of this part.

10. Changes to previously filed Form G-37s.
If your contract for work on a qualified project
experiences substantial changes, you must file
an amended Form G-37 with the agency that
certified your original submission. This amended
Form G-37 must include the full amounts of the
contract and marked amended by checking the
amended box. A revised Schedule A must also
be submitted, if applicable. “Substantial change”
means that the change is more than 20% of the
original contract amount or the change is more
than $200,000.