HB 297-FN - AS INTRODUCED
2017 SESSION
17-0241
04/10
HOUSE BILL 297-FN
AN ACT repealing the education tax credit program.
SPONSORS: Rep. Horrigan, Straf. 6
COMMITTEE: Education
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This bill repeals the education tax credit program.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
17-0241
04/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seventeen
AN ACT repealing the education tax credit program.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Tax Expenditure Specified. Amend RSA 71-C:2 to read as follows:
71-C:2 Tax Expenditures Specified. Tax expenditures include, but may not be limited to, the community development finance authority investment tax credit as computed in RSA 162-L:10; the economic revitalization zone tax credit as computed in RSA 162-N:6; the research and development tax credit under RSA 77-A:5, XIII; the Coos county job creation tax credit under RSA 77-E:3-c; [the education tax credit as computed in RSA 77-G:4;] and the weighted apportionment factors under RSA 77-A:3, II(a).
2 Tax Expenditure and Potential Liability Report. Amend RSA 71-C:4, I to read as follows:
I. On or before December 15 of every fiscal year the commissioner of the department of revenue administration shall certify in a report to the general court and the governor an analysis of each of the past fiscal year's tax expenditures as identified in RSA 71-C:2, and other credits allowed under RSA 77, RSA 77-A, RSA 77-E, [RSA 77-G,] RSA 78, RSA 78-A, 78-B, RSA 82-A, RSA 83-E, RSA 84-A, RSA 84-C, and RSA 400-A.
3 Tax Expenditure and Potential Liability Report. Amend RSA 71-C:4, II(b)(1) to read as follows:
(1) Other credits allowed under RSA 77, RSA 77-A, RSA 77-E, [RSA 77-G,] RSA 78, RSA 78-A, RSA 78-B, RSA 82, RSA 82-A, RSA 83-E, RSA 84-A, RSA 84-C, and RSA 400-A against the business profits tax imposed by RSA 77-A; and
4 Repeal. The following are repealed:
I. RSA 77-A:5, XV, relative to the education tax credit against the business profits tax.
II. RSA 77-E:3-d, relative to the education tax credit against the business enterprise tax.
III. RSA 77-G, relative to the education tax credit.
5 Effective Date. This act shall take effect upon its passage.
17-0241
12/30/16
HB 297-FN- FISCAL NOTE
AS INTRODUCED
AN ACT repealing the education tax credit program.
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
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| Estimated Increase / (Decrease) | |||
STATE: | FY 2018 | FY 2019 | FY 2020 | FY 2021 |
Appropriation | $0 | $0 | $0 | $0 |
Revenue | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase |
Expenditures | $0 | $0 | $0 | $0 |
Funding Source: | [ X ] General [ ] Education [ ] Highway [ ] Other | |||
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METHODOLOGY:
This bill repeals the education tax credit program (RSA 77-G). This program began January 1, 2013, allowing a tax credit that may be used to offset business profits tax, business enterprise tax, or both tax liabilities in the tax year in which an approved scholarship donation is made. The maximum credit allowed in each fiscal year going forward is $5,100,000. Since the start of this program, the education tax credit used to offset business profits tax, business enterprise tax, or both tax liabilities has been $20,000 in FY 2014, $115,000 in FY 2015 and $92,868 in FY 2016. The Department of Revenue Administration has no means to determine the exact impact of repealing this program on revenue as it cannot determine how many businesses would have made approved donations in the future or the total value of those future donations. The immediate fiscal impact of this bill depends upon whether the passage of this bill eliminates any outstanding tax credits that could be used to offset any tax liabilities in the 2017 tax year or immediately eliminates a taxpayer's ability to use a credit for a donation already made. The Department states the repeal of this program will increase revenue by an indeterminable amount.
AGENCIES CONTACTED:
Department of Revenue Administration
| Date | Body | Type |
|---|---|---|
| Jan. 17, 2017 | House | Hearing |
| Jan. 19, 2017 | House | Exec Session |
| Feb. 2, 2017 | House | Floor Vote |
Feb. 2, 2017: Inexpedient to Legislate: MA RC 206-157 02/02/2017 HJ 5 P. 15
: Minority Committee Report: Ought to Pass
Feb. 2, 2017: Majority Committee Report: Inexpedient to Legislate for 02/02/2017 (Vote 12-7; RC) HC 9 P. 8
Jan. 19, 2017: Executive Session: 01/19/2017 09:30 AM LOB 207
Jan. 17, 2017: Public Hearing: 01/17/2017 03:15 PM LOB 207
Jan. 5, 2017: Introduced 01/05/2017 and referred to Education HJ 3 P. 7