SB134 (2007) Detail

(2nd New Title) establishing a research and development credit against business taxes and requiring the commissioner of resources and economic development to report on the research and development tax credit program.


CHAPTER 271

SB 134-FN-A – FINAL VERSION

03/22/07 0713s

04/12/07 1216s

07Jun2007… 1883h

06/27/07 2314eba

2007 SESSION

07-1093

09/03

SENATE BILL 134-FN-A

AN ACT establishing a research and development credit against business taxes and requiring the commissioner of resources and economic development to report on the research and development tax credit program.

SPONSORS: Sen. Foster, Dist 13; Sen. Odell, Dist 8; Sen. Letourneau, Dist 19; Sen. Fuller Clark, Dist 24; Sen. DeVries, Dist 18; Sen. D'Allesandro, Dist 20; Sen. Cilley, Dist 6; Sen. Larsen, Dist 15; Rep. Hinkle, Hills 19; Rep. Lasky, Hills 26; Rep. Campbell, Hills 24

COMMITTEE: Ways and Means

AMENDED ANALYSIS

This bill establishes a research and development tax credit against the business profits tax and the business enterprise tax.

The bill also requires the commissioner of resources and economic development to file reports on the research and development tax credit program.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03/22/07 0713s

04/12/07 1216s

07Jun2007… 1883h

06/27/07 2314eba

07-1093

09/03

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Seven

AN ACT establishing a research and development credit against business taxes and requiring the commissioner of resources and economic development to report on the research and development tax credit program.

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

271:1 New Paragraph; Business Profits Tax; Research and Development Tax Credit. Amend RSA 77-A:5 by inserting after paragraph XII the following new paragraph:

XIII.(a) There shall be allowed a research and development tax credit for qualified manufacturing research and development expenditures made or incurred during the fiscal year, as follows:

(1) The aggregate of tax credits issued by the commissioner to all taxpayers claiming the credit shall not exceed $1,000,000 for any fiscal year, except that any amount of the credit less than $1,000,000 that is not claimed in the fiscal year ending June 30, 2008 may be claimed in the fiscal year ending June 30, 2009.

(2) Each credit shall be used to offset the taxpayer’s tax liability within the subsequent 5 tax years. The amount of the credit shall be the lesser of:

(A) Ten percent of the excess of the qualified manufacturing research and development expenses for the taxable year over the base amount;

(B) The proportional share of the maximum aggregate credit amount allowed in subparagraph (1);

(C) $50,000.

(3) Taxpayers shall apply for the tax credit on forms provided by the commissioner and shall be accompanied by information or records required by the commissioner. Such application shall be postmarked no later than June 30 following the tax year during which research and development occurred.

(4) A determination on the final amount of the credit awarded by the commissioner to each taxpayer claiming the credit shall be made no later than September 30 of each year.

(5) Wages for which a credit is taken under this paragraph shall not also be eligible for a credit under RSA 162-N.

(b) For purposes of this paragraph:

(1) The term “qualified manufacturing research and development expenditures” shall mean solely any wages paid or incurred to an employee of the business organization for services rendered by such employee within this state within the meaning of RSA 77-A:3; I(b), provided that:

(A) Such wages shall be treated as wages for qualified research expenses under section 41(b) of the United States Internal Revenue Code.

(B) Such services are undertaken for the purpose of discovering information which constitutes qualified research and development of a new or improved manufacturing process or business component of the business organization.

(C) The wages qualify and are reported as a credit by the business organization under section 41 of the United States Revenue Code as defined in RSA 77-A:1, XX.

(D) The wages are reported by the business organization in the enterprise value tax base under RSA 77-E.

(2) “Base amount” shall mean the base amount of expenditure as defined under section 41 of the United States Revenue Code as defined by RSA 77-A:1, XX, except that the minimum base amount may be 0.

(c) A unitary business or an enterprise consisting of one or more taxpayers under this chapter shall be considered a single taxpayer for purposes of claiming the credit under this paragraph.

271:2 New Section; Business Enterprise Tax; Credit for Research and Development. Amend RSA 77-E by inserting after section 3-a the following new section:

77-E:3-b Credit for Research and Development. The unused portion of any research and development credit awarded by the commissioner under RSA 77-A:5, XIII shall be available to apply to the business enterprise tax.

271:3 New Chapter; Research and Development Tax Credit Program. Amend RSA by inserting after chapter 162-O the following new chapter:

CHAPTER 162-P

RESEARCH AND DEVELOPMENT TAX CREDIT PROGRAM

162-P:1 Research and Development Tax Credit Program.

I. The commissioner of resources and economic development shall file a report detailing the implementation of the tax credit program under RSA 77-A:5, XIII and the results achieved. The report shall include the following:

(a) Methods and activities used to implement the tax credit program.

(b) The number of companies, including venture capital funds, contacted relative to locating research and development activities in the state.

(c) Other information as deemed relevant.

II. This report shall be filed with the president of the senate, the speaker of the house of representatives, and the governor on or before July 31 of each year, beginning with July 31, 2008.

271:4 Severability. If any provision of this act or the application thereof to any person or circumstance is held invalid, it is the intent of the legislature that the invalidity shall not affect RSA 77-A, and to this end the provisions of this act are severable.

271:5 Applicability. Sections 1-3 of this act shall apply to taxes due on account of taxable periods ending on or after September 7, 2007.

271:6 Repeal. The following are repealed:

I. RSA 77-A:5, XIII, relative to the research and development tax credit.

II. RSA 77-E:3-b, relative to the credit for research and development.

III. RSA 162-P:1, relative to the research and development tax credit program.

271:7 Effective Date.

I. Section 6 of this act shall take effect July 1, 2013.

II. The remainder of this act shall take effect July 1, 2007.

Approved: July 2, 2007

Effective: I. Section 6 shall take effect July 1, 2013.

II. Remainder shall take effect July 1, 2007.

Links

SB134 at GenCourtMobile

Action Dates

Date Body Type

Bill Text Revisions

SB134 Revision: 11133 Date: Jan. 11, 2010, midnight

Docket