HB1644 (2008) Detail

Establishing a Coos county job creation tax credit.


CHAPTER 172

HB 1644-FN-A – FINAL VERSION

19Mar2008… 1018h

2008 SESSION

08-2914

09/04

HOUSE BILL 1644-FN-A

AN ACT establishing a Coos county job creation tax credit.

SPONSORS: Rep. S. Merrick, Coos 2; Rep. Remick, Coos 2; Rep. E. Merrick, Coos 2; Rep. McLeod, Graf 2; Rep. Tholl, Coos 2; Sen. Gallus, Dist 1; Sen. Clegg, Dist 14; Sen. Foster, Dist 13; Sen. Larsen, Dist 15; Sen. Reynolds, Dist 2

COMMITTEE: Ways and Means

ANALYSIS

This bill establishes a Coos county job creation tax credit.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

19Mar2008… 1018h

08-2914

09/04

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Eight

AN ACT establishing a Coos county job creation tax credit.

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

172:1 Statement of Purpose. The general court recognizes that Coos county has recently endured significant job losses which severely impact the financial health of the county. While the current economy is a challenge across the entire state, the general court finds that Coos county has faced comparatively greater job losses and resulting downturn and higher unemployment than other counties in the state. Therefore, in an attempt to foster the creation of additional high quality jobs and to stimulate economic growth in Coos county, the general court hereby creates the Coos county job creation tax credit.

172:2 New Paragraph; Coos County Job Creation Tax Credit. Amend RSA 77-A:5 by inserting after paragraph XIII the following new paragraph:

XIV. The unused portion of any Coos county job creation tax credit awarded by the commissioner under RSA 77-E:3-c shall be available to apply to the business profits tax.

172:3 New Section; Business Enterprise Tax; Coos County Job Creation Tax Credit. Amend RSA 77-E by inserting after section 3-b the following new section:

77-E:3-c Coos County Job Creation Tax Credit.

I.(a) There shall be a tax credit allowed for each qualified tax credit employee, for up to 5 consecutive tax periods, as certified by the commissioner of resources and economic development under RSA 162-Q:1. The amount of the tax credit shall be as follows:

(1) $750 for each qualified tax credit employee earning wages which are equal to or greater than 150 percent but less than 200 percent of the current state minimum wage.

(2) $1000 for each qualified tax credit employee earning wages which are equal to or greater than 200 percent of the current state minimum wage.

(b) If the position held by a qualified tax credit employee ceases to exist at any time during the 5 consecutive tax periods, the employer may not claim the credit for the tax period in which the position ceased to exist or for future tax periods within the 5 consecutive tax periods.

II. The initial job creation tax credit allowed under this paragraph shall not apply to any tax period ending prior to the effective date of this section, or to any tax period ending after December 31, 2013. After being initially granted, the tax credit shall be renewable for 4 consecutive additional years, provided that no additional tax credit shall be granted for any tax period after December 31, 2017.

III. Unused portions of this credit shall be carried forward up to 5 years. Unused, carried forward credit under this section shall be applied before any other available carry-forward credit.

IV. For the purpose of the credit allowed under this section, the Coos county job creation tax credit shall be considered taxes paid under RSA 77-E.

172:4 New Chapter; Coos County Job Creation Tax Credit. Amend RSA by inserting after chapter 162-P the following new chapter:

CHAPTER 162-Q

COOS COUNTY JOB CREATION TAX CREDIT

162-Q:1 Definition.

I. In this chapter “qualified tax credit employee” means a new, full-time, year-round employee hired in Coos county for work directly in one or more business activities for which actual wages paid are equal to or greater than 150 percent of the current state minimum wage. “Qualified tax credit employee” does not include an employee who is:

(a) Shifted to a new position because of a merger, acquisition, or restructuring; or

(b) Laid-off and rehired within 270 days to the same or similar position.

(c) Not on the employer’s payroll for at least 90 days prior to the date on which the employer claims the credit for the first tax period.

II. For the purposes of calculating wages paid to the employee under paragraph I, the amount paid by the employer for medical and dental health care benefits for the employee shall be included in the amount of actual wages paid.

162-Q:2 Approval and Certification. The commissioner of the department of resources and economic development, in consultation with the commissioner of the department of revenue administration, shall develop application forms with which taxpayers may apply for the job creation tax credit. The forms shall be submitted by taxpayers to the commissioner of the department of resources and economic development, and the commissioner shall approve or deny such application and certify to the commissioner of the department of revenue administration the total credit awarded to each business organization that hires qualified tax credit employees.

162-Q:3 Reports. The commissioner of the department of resources and economic development shall file a report detailing the implementation of the tax credit program under RSA 77-E:3-c and the results achieved. 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, 2009. The report shall include the following:

I. Methods and activities used to implement the tax credit program.

II. The number and type of jobs created in Coos county.

III. The total amount of tax credits awarded.

IV. Other information as deemed relevant.

172:5 Nonseverability. It is the intent of the legislature that this act be considered a unit and its provisions inseparable. If any provision of this act is declared unconstitutional or invalid, the entire act and all of its provisions shall be invalid.

172:6 Effective Date. This act shall take effect upon its passage.

Approved:June 9, 2008

Effective Date: June 9, 2008