Bill Text - HB518 (2012)

(New Title) changing the prospective repeal date for the research and development tax credit.


Revision: Jan. 18, 2012, midnight

HB 518-FN-A – AS AMENDED BY THE HOUSE

4Jan2012… 2579h

2011 SESSION

11-0461

09/10

HOUSE BILL 518-FN-A

AN ACT changing the prospective repeal date for the research and development tax credit.

SPONSORS: Rep. Garcia, Rock 4

COMMITTEE: Ways and Means

AMENDED ANALYSIS

This bill changes the prospective repeal date for the research and development tax credit from July 1, 2013 to July 1, 2015.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

4Jan2012… 2579h

11-0461

09/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Eleven

AN ACT changing the prospective repeal date for the research and development tax credit.

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

1 Research and Development Tax Credit; Prospective Repeal Date Changed. Amend 2007, 271:7, I to read as follows:

I. Section 6 of this act shall take effect July 1, [2013] 2015.

2 Effective Date. This act shall take effect 60 days after its passage.

LBAO

11-0461

Amended 01/18/12

HB 518 FISCAL NOTE

AN ACT changing the prospective repeal date for the research and development tax credit.

FISCAL IMPACT:

    The Department of Revenue Administration states this bill, as amended by the House (Amendment #2011-2579h), will decrease state revenue by $1,000,000 in FY 2014 and FY 2015. 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 changes the repeal date of the Research and Development (R&D) tax credit program from July 1, 2013 to July 1, 2015. R&D tax credits are awarded against the Business Profits Tax (BPT) and Business Enterprise Tax (BET), and cannot exceed an aggregate of $1,000,000 in any fiscal year. The Department states since every year the requested R&D credits have exceeded $1,000,000, they assume the entire amount will be awarded in each fiscal year. The extension of such credit will result in a combined reduction of state general fund and education trust fund revenue of $1,000,000 in FY 2014 and FY 2015. The Department states they can administer this bill without any additional cost.