HB 1603-FN-A – AS INTRODUCED
2010 SESSION
09/03
HOUSE BILL 1603-FN-A
AN ACT relative to the carry forward periods for the business enterprise tax credit against the business profits tax.
SPONSORS: Rep. Hinkle, Hills 19; Rep. Seidel, Hills 20; Rep. Sapareto, Rock 5; Rep. Renzullo, Hills 27; Sen. Bragdon, Dist 11
This bill changes the carry forward periods for the business enterprise tax credit against the business profits tax.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
10-2170
09/03
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Ten
AN ACT relative to the carry forward periods for the business enterprise tax credit against the business profits tax.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Business Profits Tax; Credit for Business Enterprise Tax. Amend RSA 77-A:5, X to read as follows:
X. Taxes paid pursuant to RSA 77-E. Such credit shall be applied in accordance with RSA 77-E:13. No amount of tax paid pursuant to RSA 77-E and used as a credit against the taxes due under [RSA 83-C or] RSA 400-A shall be allowed as a credit under this paragraph except as provided in [RSA 83-C:2-a or] RSA 400-A:34-a. Any unused portion of the credit allowed under this paragraph may be carried forward and allowed against the tax due under this chapter for [5] 6 taxable periods from the taxable period in which the tax was paid.
2 Business Profits Tax; Credit for Business Enterprise Tax. Amend RSA 77-A:5, X to read as follows:
X. Taxes paid pursuant to RSA 77-E. Such credit shall be applied in accordance with RSA 77-E:13. No amount of tax paid pursuant to RSA 77-E and used as a credit against the taxes due under RSA 400-A shall be allowed as a credit under this paragraph except as provided in RSA 400-A:34-a. Any unused portion of the credit allowed under this paragraph may be carried forward and allowed against the tax due under this chapter for [6] 7 taxable periods from the taxable period in which the tax was paid.
3 Business Profits Tax; Credit for Business Enterprise Tax. Amend RSA 77-A:5, X to read as follows:
X. Taxes paid pursuant to RSA 77-E. Such credit shall be applied in accordance with RSA 77-E:13. No amount of tax paid pursuant to RSA 77-E and used as a credit against the taxes due under RSA 400-A shall be allowed as a credit under this paragraph except as provided in RSA 400-A:34-a. Any unused portion of the credit allowed under this paragraph may be carried forward and allowed against the tax due under this chapter for [7] 8 taxable periods from the taxable period in which the tax was paid.
4 Business Profits Tax; Credit for Business Enterprise Tax. Amend RSA 77-A:5, X to read as follows:
X. Taxes paid pursuant to RSA 77-E. Such credit shall be applied in accordance with RSA 77-E:13. No amount of tax paid pursuant to RSA 77-E and used as a credit against the taxes due under RSA 400-A shall be allowed as a credit under this paragraph except as provided in RSA 400-A:34-a. Any unused portion of the credit allowed under this paragraph may be carried forward and allowed against the tax due under this chapter for [8] 9 taxable periods from the taxable period in which the tax was paid.
5 Business Profits Tax; Credit for Business Enterprise Tax. Amend RSA 77-A:5, X to read as follows:
X. Taxes paid pursuant to RSA 77-E. Such credit shall be applied in accordance with RSA 77-E:13. No amount of tax paid pursuant to RSA 77-E and used as a credit against the taxes due under RSA 400-A shall be allowed as a credit under this paragraph except as provided in RSA 400-A:34-a. Any unused portion of the credit allowed under this paragraph may be carried forward and allowed against the tax due under this chapter for [9] 10 taxable periods from the taxable period in which the tax was paid.
6 Applicability.
I. Section 1 of this act shall apply for taxable periods ending on or after July 1, 2010.
II. Section 2 of this act shall apply for taxable periods ending on or after July 1, 2011.
III. Section 3 of this act shall apply for taxable periods ending on or after July 1, 2012.
IV. Section 4 of this act shall apply for taxable periods ending on or after July 1, 2013.
V. Section 5 of this act shall apply for taxable periods ending on or after July 1, 2014.
7 Effective Date.
I. Section 2 of this act shall take effect July 1, 2011.
II. Section 3 of this act shall take effect July 1, 2012.
III. Section 4 of this act shall take effect July 1, 2013.
IV. Section 5 of this act shall take effect July 1, 2014.
V. The remainder of this act shall take effect July 1, 2010.
LBAO
10-2170 Revised 12/31/09
HB 1603 FISCAL NOTE
AN ACT relative to the carry forward periods for the business enterprise tax credit against the business profits tax.
FISCAL IMPACT:
The Department of Revenue Administration states this bill will decrease state general fund and education trust fund revenue by an indeterminable amount in FY 2011 and each fiscal year thereafter. This bill will have no fiscal impact on state, county and local expenditures or county and local revenue.
METHODOLOGY:
The Department of Revenue Administration states this bill increases the carry forward provisions of the business enterprise tax (BET) credit against the business profits tax (BPT) every year for the next five years until the credit is a ten year credit carryover. The Department states that in calendar year 2008, under current five year carryover provision, the BET offset of BPT was $121.5 million. The Department cannot adequately extrapolate the decrease in state general fund and education trust fund revenue by expanding the BET carry forward from five to ten years, but believes it will be substantial. The Department states that they can administer this bill within their existing budget.