HB1686 (2018) Detail

Relative to applications for and the use of education tax credits.


CHAPTER 341

HB 1686-FN - FINAL VERSION

 

15Mar2018... 0155h

15Mar2018... 0831h

2018 SESSION

18-2440

10/06

 

HOUSE BILL 1686-FN

 

AN ACT relative to applications for and the use of education tax credits.

 

SPONSORS: Rep. Hill, Merr. 3; Rep. McGuire, Merr. 29; Rep. L. Turcotte, Straf. 4; Rep. Hinch, Hills. 21; Rep. Morrison, Rock. 9; Rep. Ladd, Graf. 4; Sen. Reagan, Dist 17; Sen. Sanborn, Dist 9; Sen. Daniels, Dist 11

 

COMMITTEE: Ways and Means

 

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AMENDED ANALYSIS

 

This bill allows a taxpayer to use credit computed under the education tax credit against taxes due and payable under the interest and dividends tax.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

15Mar2018... 0155h

15Mar2018... 0831h 18-2440

10/06

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Eighteen

 

AN ACT relative to applications for and the use of education tax credits.

 

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

 

341:1  Education Tax Credit; Definition; Donation Receipt.  Amend RSA 77-G:1, V(a) to read as follows:

(a)  The business organization's [or], business enterprise's, or individual's name, address, and federal taxpayer identification number.

341:2  Definition; Education Tax Credit Application.  Amend RSA 77-G:1, VII to read as follows:

VII.  "Education tax credit application'' means a document developed by the department of revenue administration and submitted by a business organization [or], business enterprise, or individual that contains at a minimum:

(a)  The business organization's [or], business enterprise's, or individual's name, address, and federal taxpayer identification number.

(b)  A contact person's name, title, and phone number.

(c)  The requested donation amount.

(d)  A signed statement certifying that the business organization [or], business enterprise, or individual agrees to make donations in accordance with the requirements established in this chapter.

341:3  New Paragraph; Definition Added; Individual.  Amend RSA 77-G:1 by inserting after paragraph VIII the following new paragraph:

VIII-a.  “Individuals,” for purposes of being granted credits under this chapter, shall include any entity having taxable interest and dividend income as described in RSA 77:3.

341:4  Definition; Scholarship Organization.  Amend RSA 77-G:1, XX to read as follows:

XX.  "Scholarship receipt'' means a document developed by the department of revenue administration and submitted by a scholarship organization to the business organization [or], business enterprise, or individual and that contains at a minimum:

(a)  The business organization's [or], business enterprise's, or individual's name, address, and federal taxpayer identification number.

(b)  The amount of the donations used or carried forward and the amount not used.

341:5  Contributions to Scholarship Organizations.  Amend RSA 77-G:3 to read as follows:

77-G:3  Contributions to Scholarship Organizations.  For each contribution made to a scholarship organization, a business organization [or], business enterprise, or individual may claim a credit equal to 85 percent of the contribution against the business profits tax due pursuant to RSA 77-A, [or] against the business enterprise tax due pursuant to RSA 77-E, against the tax on interest and dividends under RSA 77, or apportioned against [both] each provided the total credit granted [against both] shall not exceed the maximum education tax credit allowed.  Credits provided under this chapter shall not be deemed taxes paid for the purposes of RSA 77-A:5, X.  The department of revenue administration shall not grant the credit without a scholarship receipt.  No business organization [or], business enterprise, or individual shall direct, assign, or restrict any contribution to a scholarship organization for the use of a particular student or nonpublic school.  No business organization [or], business enterprise, or individual shall receive more than 10 percent of the aggregate amount of tax credits permitted in RSA 77-G:4.

341:6  Scholarship Organizations; Awards.  Amend RSA 77-G:5, I(i)(2) to read as follows:

(2)  Not award a scholarship to any lineal descendant or equivalent step-person of any proprietor, partner, or member of any business organization [or], business enterprise, or individual making a contribution to a scholarship organization and claiming a credit against the business profits tax [or], business enterprise tax, or tax on interest and dividends, nor any lineal descendant or equivalent step-person of any officer, director, or owner of more than a 5 percent interest in any business organization [or], business enterprise, or individual making a contribution to a scholarship organization and claiming a credit against the business profits tax [or], business enterprise tax, or tax on interest and dividends, nor any employee who is among the highest-paid 20 percent of paid employees in any business organization [or], business enterprise, or individual making a contribution to a scholarship organization and claiming a credit against the business profits tax [or], business enterprise tax, or tax on interest and dividends.

341:7  Scholarship Applications.  Amend RSA 77-G:5, II to read as follows:

II.(a)  An organization seeking approval as a scholarship organization under this chapter shall submit an application to the department of revenue administration each program year no later than June 15.  The department of revenue administration shall approve or deny the application within 30 days of receipt.  The department shall deny any application that fails to meet the statutory requirements and shall notify the scholarship organization of the reasons for denial.

(b)  A business organization [or], business enterprise, or individual shall submit an education tax credit application to the department of revenue administration no earlier than January 1 and no later than November 15.  The department shall approve these applications within 30 days on a first come-first served basis, up to the aggregate tax credit amount allowed under RSA 77-G:4.  If multiple education tax credit applications are received on the same day, they shall be processed at random.  No business organization [or], business enterprise, or individual shall be granted an education tax credit for more than 10 percent of the aggregate tax credit amount permitted in RSA 77-G:4.  The department of revenue administration may approve only a portion of a request if required to prevent exceeding the aggregate tax credit amount allowed under RSA 77-G:4.  The approval shall include the amount allowed and the date of approval.

(c)  Once an education tax credit application is approved, the business organization [or], business enterprise, or individual shall donate within 60 days of the date of approval, but no later than December 15, or the request shall expire.  Donations may be made to multiple scholarship organizations provided the total amount donated by the business organization [or], business enterprise, or individual does not exceed the amount approved.

(d)  Upon receiving a donation, the scholarship organization shall send a scholarship receipt to the department of revenue administration and to the business organization [or], business enterprise, or individual within 15 days.  The department of revenue administration shall notify the scholarship organization and the business organization [or], business enterprise, or individual within 15 days if the donations made [by a business organization or business enterprise] exceed the amount approved.  If a business organization [or], business enterprise, or individual fails to donate the total amount approved within the time permitted, the department of revenue administration may grant credit requests in the order specified in subparagraph (b).  

(e)  Notwithstanding RSA 193-E:5, on or before July 15, a scholarship organization shall furnish the unique pupil identifier and date of birth for each student eligible pursuant to RSA 77-G:1, VIII(a)(1) and (2) who is receiving a scholarship, and the subparagraph under which he or she was eligible, to the department of education.  The department of education shall notify the scholarship organization within 30 days of any students who are ineligible under RSA 77-G:1, VIII(a)(1).  The scholarship organization shall notify the department of education within 30 days if any student eligible under RSA 77-G:1, VIII(a)(1) or (2) is not awarded a scholarship or is awarded a scholarship yet subsequently returns to public school.  The department of education shall return such student to the calculation of the average daily membership in residence, as defined in RSA 189:1-d, IV, for the student's school district of residence, and add the amount calculated under RSA 198:40-a to the adequate education grant amount to the student's school district of residence, and include such amount in the next adequate education grant payment made under RSA 198:42.

(f)  Repealed.  

(g)  On or prior to December 1, the scholarship organization shall submit a scholarship organization report to the department of revenue administration.  The scholarship organization shall also include a scholarship organization application if it intends to issue scholarships under this chapter in the next program year.  The department of revenue administration shall review the scholarship organization report and the scholarship receipts to ensure that the administrative expenses requirement set forth in subparagraph I(f) is not exceeded, that the number of scholarships issued under RSA 77-G:1, VIII(a)(1)and (2) meets the requirements of this chapter, and the average scholarship size does not exceed the amount allowed.  If any of these requirements are not met, the department of revenue administration may deny a scholarship organization application for subsequent program years and shall notify the scholarship organization of the reasons for denial.

(h)  A business organization [or], business enterprise, or individual may file for the tax credit after receiving the scholarship receipt, and may file a tax credit request for the subsequent program year up to the amount donated in the current program year.

(i)  The provisions of this chapter regarding nonpublic schools and their relation to scholarship organizations shall apply only to nonpublic schools that choose to accept scholarship students.

341:8  Rulemaking; Applications.  Amend RSA 77-G:6, I(f)(2) to read as follows:

(2)  The application procedure for a business organization [or], business enterprise, or individual applying to a scholarship organization for a tax credit under this chapter.

341:9  Exceptions.  Amend RSA 77-G:9, III to read as follows:

III.  Donations made by a business organization [or], business enterprise, or individual to a scholarship organization that are not for the purpose of obtaining a tax credit under this chapter shall not be subject to the requirements in this chapter.

341:10  New Paragraph; Tax on Interest and Dividends; Credit for Education Tax Credit.  Amend RSA 77:18 by inserting after paragraph IV the following new paragraph:

V.  A taxpayer may elect to credit all or a portion of the education tax credit computed under RSA 77-G:4 against the tax due and payable under this chapter.

341:11  Education Tax Credit; Aggregate Amount.  RSA 77-G:4 is repealed and reenacted to read as follows:

77-G:4  Tax Credits.  The aggregate of tax credits issued by the commissioner of the department of revenue administration to all taxpayers claiming the credit shall not exceed $5,100,000 for a program year.

341:12  Effective Date.  This act shall take effect July 1, 2018.

 

Approved: June 28, 2018

Effective Date: July 01, 2018

 

 

Links

HB1686 at GenCourtMobile

Action Dates

Date Body Type
Jan. 17, 2018 House Hearing
Jan. 24, 2018 House Exec Session
House Floor Vote
March 6, 2018 House Floor Vote
March 15, 2018 House Floor Vote
April 4, 2018 Senate Hearing
April 26, 2018 Senate Floor Vote
April 26, 2018 Senate Floor Vote
May 2, 2018 Senate Floor Vote
May 2, 2018 Senate Floor Vote
May 3, 2018 Senate Floor Vote

Bill Text Revisions

HB1686 Revision: 4268 Date: July 11, 2018, 8:59 a.m.
HB1686 Revision: 3790 Date: May 7, 2018, 11:17 a.m.
HB1686 Revision: 3286 Date: March 23, 2018, 4:59 p.m.
HB1686 Revision: 2301 Date: Nov. 13, 2017, 2:45 p.m.

Docket

Date Status
Jan. 3, 2018 Introduced 01/03/2018 and referred to Ways and Means HJ 1 P. 20
Jan. 17, 2018 Public Hearing: 01/17/2018 02:00 PM LOB 202
Jan. 24, 2018 Full Committee Work Session: 01/24/2018 11:00 AM LOB 202
Jan. 24, 2018 Executive Session: 01/24/2018 LOB 202
Majority Committee Report: Ought to Pass with Amendment # 2018-0155h (Vote 13-10; RC)
Minority Committee Report: Inexpedient to Legislate
March 6, 2018 Committee Report: Ought to Pass with Amendment # 2018-0155h for 03/06/2018 (Vote 13-10; RC) HC 9 P. 66
Committee Report: Ought to Pass with Amendment # 2018-0155h (Vote 13-10; RC)
Minority Committee Report: Inexpedient to Legislate
March 6, 2018 Suspend House Rule 65 (Reps. Hinch, Shurtleff): MA VV by necessary two-thirds vote 03/06/2018 HJ 6 P. 125
Special Order to 3/15/2018 Without Objection HJ 7 P. 49
March 15, 2018 Amendment # 2018-0155h: AA VV 03/15/2018 HJ 8 P. 54
March 15, 2018 FLAM # 2018-0831h (Rep. Lang): AA VV 03/15/2018 HJ 8 P. 55
March 15, 2018 Ought to Pass with Amendment 0155h and 0831h: MA RC 168-147 03/15/2018 HJ 8 P. 55
March 15, 2018 Reconsider HB 1686 (Rep. Hinch): MF DV 146-171 03/15/2018 HJ 8 P. 57
March 21, 2018 Introduced 03/21/2018 and Referred to Ways and Means; SJ 10
April 4, 2018 Hearing: 04/04/2018, Room 100, SH, 09:10 am; SC 15
April 26, 2018 Committee Report: Ought to Pass, 04/26/2018; SC 18
April 26, 2018 Special Order to the present time, Without Objection, MA; 04/26/2018; SJ 14
April 26, 2018 Ought to Pass: RC 13Y-10N, MA; Refer to Finance Rule 4-5; 04/26/2018; SJ 14
May 2, 2018 Committee Report: Ought to Pass, 05/02/2018; SC 19A
May 3, 2018 Special Order to 05/03/2018, Without Objection, MA; 05/02/2018 SJ 15
May 3, 2018 Committee Report: Ought to Pass, 05/03/2018;
May 3, 2018 Sen. Feltes Floor Amendment # 2018-1861s, RC 10Y-14N, AF; 05/03/2018; SJ 16
May 3, 2018 Ought to Pass: RC 14Y-10N, MA; OT3rdg; 05/03/2018; SJ 16
May 10, 2018 Enrolled (In recess 05/10/2018); SJ 18
May 10, 2018 Enrolled 05/10/2018
Signed by Governor Sununu 06/28/2018; Chapter 341; Eff. 07/01/2018