Revision: Dec. 22, 2011, midnight
SB 295-FN-A – AS INTRODUCED
2012 SESSION
09/10
SENATE BILL 295-FN-A
AN ACT increasing the research and development tax credit against the business profits tax.
SPONSORS: Sen. Odell, Dist 8; Sen. Bradley, Dist 3; Rep. Bettencourt, Rock 4
This bill increases the research and development tax credit against the business profits tax. The bill repeals the prospective repeal of the research and development tax credit.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
12-2871
09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twelve
AN ACT increasing the research and development 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; Amount of Research and Development Tax Credit Increased. Amend RSA 77-A:5, XIII(a)(1) to read as follows:
(1) The aggregate of tax credits issued by the commissioner to all taxpayers claiming the credit shall not exceed [$1,000,000] $2,000,000 for any fiscal year[, except that any amount of the credit less than $1,000,000 that is not claimed in the fiscal year ending June 30, 2008 may be claimed in the fiscal year ending June 30, 2009].
2 Prospective Repeal of Research and Development Tax Credit Repealed. 2007, 271:6, relative to the repeal of the research and development tax credit authorized by 77-A:5, XIII, RSA 77-E:3-b, and RSA 162-P:1, is repealed.
3 Effective Date.
I. Section 2 of this act shall take effect upon its passage.
II. The remainder of this act shall take effect July 1, 2013.
LBAO
12-2871
11/09/11
SB 295-FN-A - FISCAL NOTE
AN ACT increasing the research and development tax credit against the business profits tax.
FISCAL IMPACT:
The Department of Revenue Administration states this bill will decrease state revenue by $2,000,000 in FY 2014 and each 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states the Research and Development (R&D) Tax Credit was established in 2007 and is prospectively set to be repealed on July 1, 2013 (FY 2014). The bill proposes to repeal the prospective repeal, and change the maximum aggregate amount of credit awarded each fiscal year from $1,000,000 to $2,000,000 beginning in FY 2014. Based upon R&D Tax Credit issuance data from 2007 through 2011, the maximum amount of $1,000,000 was awarded each year, and the Department assumes the maximum amount of $2,000,000 as proposed in this bill would likely be awarded each year. As such, the Department estimates state revenue would decrease by $2,000,000 in FY 2014 and each year thereafter.