Revision: Feb. 20, 2009, midnight
SB 182-FN-A – AS INTRODUCED
2009 SESSION
09/10
SENATE BILL 182-FN-A
AN ACT establishing a job creation credit against the business profits tax and the business enterprise tax for businesses manufacturing energy efficient products.
SPONSORS: Sen. Kelly, Dist 10; Sen. Fuller Clark, Dist 24; Sen. Odell, Dist 8
This bill establishes a job creation credit against the business profits tax and the business enterprise tax for businesses manufacturing energy efficient products and increasing employment in New Hampshire.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
09-0889
09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Nine
AN ACT establishing a job creation credit against the business profits tax and the business enterprise tax for businesses manufacturing energy efficient products.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Paragraph; Business Profits Tax; Job Creation Tax Credit for Manufacturers of Energy Efficient Products. Amend RSA 77-A:5 by inserting after paragraph XIV the following new paragraph:
XV. The unused portion of any job creation tax credit awarded by the commissioner under RSA 77-E:3-d shall be available to apply to the business profits tax.
2 New Section; Business Enterprise Tax; Job Creation Tax Credit for Manufacturers of Energy Efficient Products. Amend RSA 77-E by inserting after section 3-c the following new section:
77-E:3-d Job Creation Tax Credit for Manufacturers of Energy Efficient Products.
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-R:2. 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) $1,000 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 section 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, 2014. 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, 2018.
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 job creation tax credit shall be considered taxes paid under RSA 77-E.
3 New Chapter; Job Creation Tax Credit for Manufacturers of Energy Efficient Products. Amend RSA by inserting after chapter 162-Q the following new chapter:
CHAPTER 162-R
JOB CREATION TAX CREDIT FOR MANUFACTURERS
OF ENERGY EFFICIENT PRODUCTS
162-R:1 Definitions.
I. In this chapter:
(a) “Energy efficient products” means products labeled with the Energy Star label designated by the Energy Star Product Development teams at the United States Environmental Protection Agency and the United States Department of Energy.
(b) “Qualified tax credit employee” means a new, full-time, year-round employee hired by businesses manufacturing energy efficient products 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:
(1) Shifted to a new position because of a merger, acquisition, or restructuring; or
(2) Laid-off and rehired within 270 days to the same or similar position.
(3) 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-R: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-R: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-d 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, 2010. 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 by businesses manufacturing energy efficient products.
III. The total amount of tax credits awarded.
IV. Other information as deemed relevant.
4 Effective Date. This act shall take effect upon its passage.
LBAO
09-0889
Revised 02/20/09
SB 182 FISCAL NOTE
AN ACT establishing a job creation credit against the business profits tax and the business enterprise tax for businesses manufacturing energy efficient products.
FISCAL IMPACT:
The Department of Revenue Administration states this bill will decrease state general fund and state restricted revenues and increase state expenditures by an indeterminable amount in FY 2010 and each year thereafter. This bill will have no fiscal impact on county and local revenues and expenditures.
METHODOLOGY:
The Department of Revenue Administration states this bill establishes a job creation credit against the business profits tax (BPT) and the business enterprise tax (BET) for businesses manufacturing energy efficient products. The allowable tax credit is $750 for each qualified tax credit employee earning wages which are equal to or greater than 150% but less than 200% of the current state minimum wage and $1,000 for each qualified tax credit employee earning wages which are equal to or greater than 200% of the current state minimum wage. The tax credit is allowed for up to five consecutive tax periods and is certified by the Commissioner of the Department of Resources and Economic Development (DRED). The maximum total tax credit available over the five year period is either $3,750 or $5,000 per qualified tax credit employee. The Department has no information to determine how many businesses manufacturing energy efficient products will apply for these tax credits or how many tax credits will be certified by the Commissioner of DRED. The Department states it will incur costs related to administrative functions for production of forms and computer programming related to this bill. Since this credit can be used to offset BPT and BET, the Department states this bill will decrease state general fund and state restricted education trust fund revenues and increase state expenditures by an indeterminable amount in FY 2010 and each year thereafter.
The Department of Resources and Economic Development states this bill has no fiscal impact to the Department.
This bill does not contain an appropriation or establish positions.