CHAPTER 119
SB 344-FN - FINAL VERSION
02/18/2016 0470s
2016 SESSION
\t16-2797
\t10/09
SENATE BILL\t344-FN
AN ACT\trelative to tax credits applicable to client companies of employee leasing companies.
SPONSORS:\tSen. Carson, Dist 14; Sen. Avard, Dist 12; Sen. Little, Dist 8; Rep. P. McCarthy, Hills. 29
COMMITTEE:\tWays And Means
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ANALYSIS
\tThis bill clarifies the application of business tax credits based on employment to client companies of employee leasing companies.
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Explanation:\tMatter added to current law appears in bold italics.
\t\tMatter removed from current law appears [in brackets and struckthrough.]
\t\tMatter which is either (a) all new or (b) repealed and reenacted appears in regular type.
02/18/2016 0470s\t16-2797
\t10/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Sixteen
AN ACT\trelative to tax credits applicable to client companies of employee leasing companies.
Be it Enacted by the Senate and House of Representatives in General Court convened:
\t119:1 Employee Leasing Companies; Tax Credits. Amend RSA 277-B:17-a to read as follows:
\t277-B:17-a Tax Credits [and Other Incentives]. For purposes of determination of business profits tax credits[, grants, or any other economic incentives] under RSA 77-A, Coos county job creation credits under RSA 162-Q, economic revitalization zone credits under RSA 162-N, or any other available statutory tax credits provided by this state [or other government entity] that are based on employment, leased employees shall be deemed employees solely of the client company if an election is made pursuant to RSA 77-E:13-a. A client company shall be entitled to the benefit of any such tax credit[, economic incentive, or other benefit] arising as the result of the employment of leased employees of such client company. Notwithstanding that the employee leasing company is the W-2 reporting employer, the client company shall continue to qualify for [such benefit, incentive, or credit] business profits tax credits under RSA 77-A, Coos county job creation credits under RSA 162-Q, economic revitalization zone credits under RSA 162-N, or any other available statutory tax credits. [If a grant or amount of any such incentive is based on the number of employees, then each client company shall be treated as employing only those leased employees co-employed by the client company.] Leased employees working for other client companies of the employee leasing company shall not be counted together. Each employing leasing company shall provide, upon request by a client company, state agency, or department responsible for administration of any such tax credit [or economic incentive], employment information reasonably required by such agency or department and necessary to support any request, claim, application, or other action by a client company seeking any such tax credit [or economic incentive]. This section shall not apply to the administration of RSA 282-A.
\t119:2 Application. The provisions of section 1 of this act shall apply to wages paid beginning on and after January 1, 2016.
\t119:3 Effective Date. This act shall take effect upon its passage.
Approved: May 20, 2016
Effective Date: May 20, 2016