Revision: Jan. 28, 2010, midnight
SB 496-FN-A – AS INTRODUCED
2010 SESSION
09/10
SENATE BILL 496-FN-A
AN ACT changing the carry forward periods for the business enterprise tax credit against the business profits tax and increasing the threshold amounts for taxation under the business enterprise tax.
SPONSORS: Sen. Bragdon, Dist 11; Sen. Barnes, Jr., Dist 17; Sen. Bradley, Dist 3; Sen. Carson, Dist 14; Sen. Downing, Dist 22; Sen. Gallus, Dist 1; Sen. Letourneau, Dist 19; Sen. Roberge, Dist 9; Rep. Renzullo, Hills 27; Rep. Charron, Rock 7; Rep. Welch, Rock 8
This bill changes the carry forward periods for the business enterprise tax credit against the business profits tax. This bill also increases the threshold amounts for taxation under the business enterprise tax.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
10-2887
09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Ten
AN ACT changing the carry forward periods for the business enterprise tax credit against the business profits tax and increasing the threshold amounts for taxation under the business enterprise 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 Business Enterprise Tax; Returns. Amend RSA 77-E:5 to read as follows:
77-E:5 Returns.
I. Every business enterprise having gross business receipts in excess of [$150,000] $200,000 as defined by RSA 77-E:1, X, during the taxable period or the enterprise value tax base of which is greater than [$75,000] $100,000, shall, on or before the fifteenth day of the third month in the case of enterprises required to file a United States corporation tax return, and the fifteenth day of the fourth month in the case of all other business enterprises, following expiration of its taxable period, make a return to the commissioner. All returns shall be signed by the business enterprise or by its authorized representative, subject to the pains and penalties of perjury and the penalties provided in RSA 21-J:39.
II. Every business enterprise shall in addition file a declaration of its estimated business enterprise tax for its subsequent taxable period; provided, however, if the estimated tax is less than [$200] $260, a declaration need not be filed; and provided further that a declaration shall be filed at the end of any quarter thereafter in which estimated tax exceeds [$200] $260. The declaration shall be filed when payments are due under RSA 77-E:6.
7 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.
8 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
10-2887
12/31/09
SB 496-FN-A - FISCAL NOTE
AN ACT changing the carry forward periods for the business enterprise tax credit against the business profits tax and increasing the threshold amounts for taxation under the business enterprise 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. This bill also increases the threshold amounts for taxation under BET to $200,000 gross business receipts or a business enterprise value base (BETVB) greater than $100,000.
Carryover Provisions: 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 revenue by expanding the BET carry forward from five to ten years, but believes it will be substantial.
Threshold Provisions: The Department determined the decrease in state revenue from increasing the BET filing thresholds by analyzing FY 2009 tax data from the 43,753 BET tax returns filed. The Department determined the maximum decrease from the BETVB threshold change ($75,000 to $100,000) to be $6.8 million per year, based on 19,100 businesses that would be under the threshold and no longer pay BET. The Department states the revenue decrease from the gross business receipts threshold change ($150,000 to $200,000) is indeterminable because the Department’s computer system does not capture gross business receipts of a business to be able to make the calculation.
The Department states that they can administer the provisions of this bill within their existing budget.