Revision: Jan. 18, 2011, midnight
HB 187-FN-A – AS INTRODUCED
2011 SESSION
09/10
HOUSE BILL 187-FN-A
AN ACT relative to the carry forward periods for the business enterprise tax credit against the business profits tax.
SPONSORS: Rep. Sapareto, Rock 5; Rep. Weyler, Rock 8; Rep. Major, Rock 8; Rep. Graham, Hills 18; Rep. Emerton, Hills 7
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
11-0157
09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eleven
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; 2012. 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; 2013. 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; 2014. 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; 2015. 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, 2011.
II. Section 2 of this act shall apply for taxable periods ending on or after July 1, 2012.
III. Section 3 of this act shall apply for taxable periods ending on or after July 1, 2013.
IV. Section 4 of this act shall apply for taxable periods ending on or after July 1, 2014.
V. Section 5 of this act shall apply for taxable periods ending on or after July 1, 2015.
7 Effective Date.
I. Section 2 of this act shall take effect July 1, 2012.
II. Section 3 of this act shall take effect July 1, 2013.
III. Section 4 of this act shall take effect July 1, 2014.
IV. Section 5 of this act shall take effect July 1, 2015.
V. The remainder of this act shall take effect July 1, 2011.
LBAO
11-0157
12/13/10
HB 187-FN-A - 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 would decrease state revenue by an indeterminable amount in FY 2012 and in each fiscal year thereafter. There will be no fiscal impact on state expenditures or county and local revenue or expenditures.
METHODOLOGY:
The Department states this bill seeks to increase the number of years the business enterprise tax (BET) credit can be carried forward and used against the business profit tax (BPT). The Department reviewed tax filings from the last five fiscal years (FY 2006 – FY 2010) and determined there was an annual average of 3,624 taxpayers who applied a BET credit against their BPT liability that was greater than the BET they were paying for that period of an average of $15,888,900 per year. This amount represents the average amount of carry forward credit used annually over the last five fiscal years. As the Department does not have data available related to how much BET carry forward credit lapses annually, it is unable to provide a reasonable estimate of this bill’s fiscal impact in FY 2012 and each fiscal year thereafter.
The Department states the cost of administering this bill could be absorbed in their current budget.