HB1604 (2006) Detail

Establishing business tax credits for employer-sponsored shared commuting costs.


HB 1604-FN-A-LOCAL – AS INTRODUCED

2006 SESSION

06-2671

09/10

HOUSE BILL 1604-FN-A-LOCAL

AN ACT establishing business tax credits for employer-sponsored shared commuting costs.

SPONSORS: Rep. Norelli, Rock 16; Sen. Fuller Clark, Dist 24; Sen. Larsen, Dist 15; Sen. Green, Dist 6; Sen. D'Allesandro, Dist 20

COMMITTEE: Ways and Means

ANALYSIS

This bill establishes business tax credits for employer-sponsored shared commuting costs.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

06-2671

09/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Six

AN ACT establishing business tax credits for employer-sponsored shared commuting costs.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 New Paragraph; Credits Against Business Profits Tax. Amend RSA 77-A:5 by inserting after paragraph XII the following new paragraph:

XIII. An employer-sponsored shared commuting tax credit which shall be equal to 50 percent of the employer’s direct costs up to $250 per participating employee for employer-sponsored shared commuting, including expenses for employer sponsorship, participation, and membership in ride-sharing programs, including guaranteed ride-home programs, and reimbursements to employees for costs of public transportation and ride-sharing programs, including guaranteed ride-home programs. This credit may be applied against either the tax imposed under this chapter or the business enterprise tax imposed under RSA 77-E.

2 New Section; Credit Against Business Enterprise Tax. Amend RSA 77-E by inserting after section 3-a the following new section:

77-E:3-b Employer-Sponsored Shared Commuting Tax Credit. The employer-sponsored shared commuting tax credit allowed under RSA 77-A:5, XIII may be applied to either the tax imposed under RSA 77-A or the tax imposed under this chapter.

3 Effective Date. This act shall take effect July 1, 2006.

LBAO

06-2671

11/17/05

HB 1604-FN-A-LOCAL - FISCAL NOTE

AN ACT establishing business tax credits for employer-sponsored shared commuting costs.

FISCAL IMPACT:

      The Department of Revenue Administration indicates this bill will decrease state unrestricted general fund revenue and state restricted education trust fund revenue by an indeterminable amount in FY 2007 and each year thereafter. There is no fiscal impact on state, county and local expenditures or county and local revenue.

METHODOLOGY:

    The Department of Revenue Administration (DRA) states this bill establishes business tax credits of $250 per employee for those that participate in employer-sponsored shared commuting cost programs. The DRA indicates the decrease in state revenue is indeterminable because the Department cannot estimate program participation rates, costs, or any other data related to employer-sponsored shared commuting programs. The DRA further states that since this credit impacts business profits tax and business enterprise tax, both the general fund and education trust fund revenues would be impacted. The Department states that this tax change can be administered within their existing budget.