Revision: March 14, 2013, midnight
SB 1-FN-A – AS AMENDED BY THE HOUSE
13Mar2013… 0708h
2013 SESSION
09/01
SENATE BILL 1-FN-A
AN ACT increasing the research and development tax credit against the business profits tax and relative to the report of the commissioner of resources and economic development on the research and development tax credit.
SPONSORS: Sen. Odell, Dist 8; Sen. Forrester, Dist 2; Sen. Rausch, Dist 19; Sen. Carson, Dist 14; Sen. Stiles, Dist 24; Sen. Reagan, Dist 17; Sen. Cataldo, Dist 6; Sen. Bradley, Dist 3; Sen. Boutin, Dist 16; Sen. Watters, Dist 4; Sen. Lasky, Dist 13; Sen. Fuller Clark, Dist 21; Sen. Gilmour, Dist 12; Sen. Soucy, Dist 18; Sen. Pierce, Dist 5; Sen. Kelly, Dist 10; Sen. Larsen, Dist 15; Sen. Woodburn, Dist 1; Sen. Morse, Dist 22; Sen. D'Allesandro, Dist 20; Sen. Hosmer, Dist 7; Rep. Cebrowski, Hills 7; Rep. Grenier, Sull 7; Rep. Chandler, Carr 1; Rep. Campbell, Hills 33; Rep. Wazlaw, Rock 29
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.
The bill also changes the reporting requirements for the commissioner of resources and economic development regarding 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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
13Mar2013… 0708h
13-0263
09/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Thirteen
AN ACT increasing the research and development tax credit against the business profits tax and relative to the report of the commissioner of resources and economic development on the research and development tax credit.
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 Research and Development Tax Credit Program. Amend RSA 162-P:1 to read as follows:.
162-P:1 Research and Development Tax Credit Program.
I. The commissioner of resources and economic development shall file a report detailing the implementation of the tax credit program under RSA 77-A:5, XIII and the results achieved. The report shall include the following:
(a) Methods and activities used to implement the tax credit program.
(b) The number of companies, including venture capital funds, contacted relative to locating research and development activities in the state.
(c) Types and sizes of companies using the credit, and the effect on hiring and company growth, to the extent permitted by confidentiality concerns.
(d) Size of the credit relative to the federal credit for typical companies.
(e) Other information as deemed relevant.
II. This report shall be filed with the president of the senate, the speaker of the house of representatives, the chairmen of the house and senate ways and means committees, and the governor on or before July 31 of each year, beginning with July 31, 2008.
3 Repeal. 2007, 271:6 and 2007, 271:7, I, as amended by 2012, 116:1, relative to the prospective repeal date of the research and development tax credit, are repealed.
4 Effective Date. This act shall take effect 60 days after its passage.
LBAO
13-0263.0
12/04/12
SB 1-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, as introduced, will decrease state revenue by $1,000,000 in FY 2014 and FY 2015, and by $2,000,000 in FY 2016 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 this bill increases the Research and Development (R&D) tax credit from $1,000,000 to $2,000,000, and eliminates the current repeal date of July 1, 2015. 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 increase and 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, and $2,000,000 in FY 2016 and each year thereafter. The Department states they can administer this bill without any additional cost.