HB1819 (2018) Detail

Relative to administration of the education tax credit.


CHAPTER 357

HB 1819-FN - FINAL VERSION

 

8Feb2018... 0295h

22Mar2018... 1053h

22Mar2018... 1175h

05/03/2018   1901s

23May2018... 2124-EBA

 

2018 SESSION

18-2384

10/03

 

HOUSE BILL 1819-FN

 

AN ACT relative to administration of the education tax credit.

 

SPONSORS: Rep. Dean-Bailey, Rock. 32; Rep. McGuire, Merr. 29

 

COMMITTEE: Education

 

-----------------------------------------------------------------

 

ANALYSIS

 

This bill makes various changes to the administration of applications, awards, and credits issued under the education tax credit program.

 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

8Feb2018... 0295h

22Mar2018... 1053h

22Mar2018... 1175h

05/03/2018   1901s

23May2018... 2124-EBA 18-2384

10/03

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Eighteen

 

AN ACT relative to administration of the education tax credit.

 

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

 

357:1  Education Tax Credit; Definition; Eligible Student.  Amend RSA 77-G:1, VIII(a)(1) to read as follows:

(a)(1)  Who is currently attending a New Hampshire public school, including a chartered public school, and for whom the adequacy grant in the next school year would be reduced if the student were removed from the average daily membership calculation, or who is entering kindergarten or first grade; or

357:2  Education Tax Credit; Program Year.  Amend RSA 77-G:1, XII to read as follows:

XII.  "Program year'' means the year beginning [January] July 1 and ending [December 31] June 30.

357:3  Definition; Receipt.  Amend RSA 77-G:1, XIII to read as follows:

XIII.  "Receipt'' means [a document developed by the department of revenue administration that is issued by the receiving school, or parent in the case of a home educated student, to the scholarship organization which makes payment for educational expenses on behalf of an eligible student and that contains, at a minimum and where applicable] proof of payment received by a school from a scholarship organization or, in the case of a home educated student, a document that is issued by the parent of a home educated student, to the scholarship organization which makes payment for educational expenses on behalf of an eligible student and that contains, at a minimum and where applicable:

(a)  [The name and address of the school if a school is attended or, in the case of a home educated student, the name and address of a parent] The name and address of a parent of a home educated student.

(b)  The name and address of the eligible student for whom the expense has been paid.

(c)  The name of the [payer] payee and the date and amount of the expense paid.

[(d)  Receipts for all specific, reimbursed educational expenses.]

357:4  Definition; Scholarship Receipt.  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 and that contains at a minimum:  

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

(b)  The [amount of the donations used or carried forward and the amount not used] donation amount and date received or postmarked.

(c)  The scholarship organization's name and address.

357:5  Definition; Scholarship Organization Report.  Amend RSA 77-G:1, XIX(a) and (b) to read as follows:

(a)  The number of scholarships granted under subparagraph VIII(a)(1), and the percentage of these students who were eligible for the federal free and reduced-price meal program in the [final year they were in public school] prior year.

(b)  The number of scholarships granted under subparagraph VIII(a)(2), and the percentage of these students who were eligible for the federal free and reduced-price meal program in the [final year they were in public school] prior year.

357:6  Definition; Scholarship Organization Report; Survey.  Amend the introductory paragraph of RSA 77-G:1, XIX(k)(1) to read as follows:

(k)(1)  The aggregated results from a survey, designed by the department of revenue administration, and administered by the scholarship organization, which shall solicit [and receive] information from at least 90 percent of the parents or legal guardians of participating students, broken down by the number of years in the program.  In each case, the respondent shall be asked to gauge their level of agreement with the statement as follows: "strongly agree,'' "agree,'' "no change,'' "disagree,'' "strongly disagree.''  The following statements shall be included in the survey:

357:7  Scholarships.  Amend RSA 77-G:2, I(b) to read as follows:

(b)  The average value of all scholarships awarded by a scholarship organization, excluding eligible students who received scholarships for educational expenses related to home education only, shall not exceed $2,500.  Beginning in the second year of the program, the commissioner of the department of revenue administration shall annually adjust this amount based on the average change in the Consumer Price Index for All Urban Consumers, Northeast Region, using the "services less medical care services'' special aggregate index, as published by the Bureau of Labor Statistics, United States Department of Labor.  The average change shall be calculated using the calendar year ending 12 months prior to the beginning of program year.  In each of the first and second program years, a scholarship organization shall award a minimum of 70 percent of all scholarships issued to eligible students as defined in RSA 77-G:1, VIII(a)(1) and (2) and, notwithstanding RSA 193-E:5, shall notify the department of education of the unique pupil identifier and date of birth for each of these students granted a scholarship [by July 15] within 30 days following the end of each program year.  The required minimum percentage of all scholarships issued by a scholarship organization to eligible students as defined in RSA 77-G:1, VIII(a)(1) and (2) shall be reduced by 5 percent each program year for years 3 through 15 of the program, and, at the beginning of the sixteenth program year and every program year thereafter, there shall be no required minimum percentage of scholarships.

357:8  Scholarships.  Amend RSA 77-G:2, I(d) to read as follows:

(d)  At least 40 percent of the scholarships awarded by the scholarship organization to eligible students as defined in RSA 77-G:1, VIII(a)(1) and (2) shall be awarded to students who qualified for the federal free and reduced-price meal program in the [final year they were in public school] prior year.

357:9  Education Tax Credit; Aggregate Amount; Carry Forward.  RSA 77-G:4 is repealed and reenacted to read as follows:

77-G:4  Tax Credits.  

I.  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.

II.  The credit issued to a business organization or business enterprise, or any unused portion thereof, may be carried forward for no more than 5 succeeding years, but shall not exceed $1,000,000 in any given tax year.

357:10  Scholarship Organizations; Carry Forward.  Amend RSA 77-G:5, I(g) to read as follows:

(g)  In the first program year, there shall be no carry forward of unused eligible contributions.  In each program year thereafter, [not more than 10 percent of eligible] contributions may be carried forward to the following program year.

357:11  Scholarship Organizations; Awards.  Amend RSA 77-G:5, I(i)(2) to read as follows:

(2)  Not knowingly award a scholarship to any lineal descendant or equivalent step-person of any proprietor, partner, or member of any business organization or business enterprise making a contribution to a scholarship organization and claiming a credit against the business profits tax or business enterprise tax, 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 making a contribution to a scholarship organization and claiming a credit against the business profits tax or business enterprise tax, nor any employee who is among the highest-paid 20 percent of paid employees in any business organization or business enterprise making a contribution to a scholarship organization and claiming a credit against the business profits tax or business enterprise tax.

357:12  Scholarship Application.  Amend RSA 77-G:5, II(a)-(c) to read as follows:

(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 of the application or the scholarship organization report, whichever is later.  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 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] no later than May 31 of each program year.  Applications received after May 31 shall be processed for the following program year and approved within 30 days of receipt or within 30 days of the department of revenue administration’s approval of the scholarship organization, whichever comes later.  Applications shall be processed 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 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 shall donate [within] no later than 60 days [of] after the date of approval[, but no later than December 15,] and no later than June 30 of the program year during which its application was approved 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 does not exceed the amount approved.

357:13  Scholarship Organizations; Eligible Students.  Amend RSA 77-G:5, II(e)-(g) to read as follows:

(e)  Notwithstanding RSA 193-E:5, [on or before July 15,] within 30 days following the end of each program year, 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] received 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,] Within 30 days following the end of each program year, the scholarship organization shall submit a scholarship organization report to the department of revenue administration for the most recently completed program year.  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.

357:14  Program Year.  Amend RSA 77-G:7, I to read as follows:

I.  The department of education shall determine the number of students receiving a scholarship under RSA 77-G:1, VIII(a)(1) and (2) who were counted in the calculation of the average daily membership in attendance, as defined in RSA 198:38, I, for schools, other than chartered public schools, for the student's school district of residence and for each such student, shall deduct the amount calculated under RSA 198:40-a from the total education grant amount disbursed to the student's school district of residence calculated pursuant to RSA 198:40-a.  This adjustment shall be completed prior to September 1 of the program year [in] after which the scholarships are granted.

  357:15  Repeal.  RSA 77-G:1, V, relative to the definition of a donation receipt, is repealed.

357:16  Transition Provision.  This act shortens the 2018 program year to a 6-month period running from January 1, 2018 to June 30, 2018.  Notwithstanding the provisions of RSA 77-G:5, I(g) prior to amendment by this act, all education tax credit donations received by the scholarship organization from January 1, 2018 to June 30, 2018 shall be carried forward into the 2019 program year, which begins on July 1, 2018 and ends on June 30, 2019, and shall count as aggregate tax credits under RSA 77-G:4, I for the July 1, 2018 to June 30, 2019 program year.  Education tax credit donations received by the scholarship organization, during the shortened 2018 program year shall be reported on the scholarship organization’s 2019 ED-05, to be submitted under RSA 77-G:5, II(g) and within 30 days following the June 30, 2019 end of that program year.

357:17  Definition; Scholarship Receipt; Contingent Version.  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, business enterprise, or individual and that contains at a minimum:

(a)  The business organization's, 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] donation amount and date received or postmarked.

(c)  The scholarship organization's name and address.

357:18  Scholarship Organizations; Awards; Contingent Version.  Amend RSA 77-G:5, I(i)(2) to read as follows:

(2)  Not knowingly award a scholarship to any lineal descendant or equivalent step-person of any proprietor, partner, or member of any business organization, business enterprise, or individual making a contribution to a scholarship organization and claiming a credit against the business profits tax, 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, business enterprise, or individual making a contribution to a scholarship organization and claiming a credit against the business profits tax, 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, business enterprise, or individual making a contribution to a scholarship organization and claiming a credit against the business profits tax, business enterprise tax, or tax on interest and dividends.

357:19  Scholarship Applications; Contingent Version.  Amend RSA 77-G:5, II(a)-(c) 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 of the application or the scholarship organization report, whichever is later.  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, 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] no later than May 31 of each program year.  Applications received after May 31 shall be processed for the following program year and approved within 30 days of receipt or within 30 days of the department of revenue administration’s approval of the scholarship organization, whichever comes later.  Applications shall be processed 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, 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, business enterprise, or individual shall donate [within] no later than 60 days [of] after the date of approval, [but no later than December 15,] and no later than June 30 of the program year during which its application was approved or the request shall expire.  Donations may be made to multiple scholarship organizations provided the total amount donated by the business organization, business enterprise, or individual does not exceed the amount approved.

357:20  Contingency.  If HB 1686-FN of the 2018 regular legislative session becomes law, sections 17-19 of this act shall take effect July 1, 2018 at 12:01 a.m. and sections 4, 11, and 12 of this act shall not take effect.  If HB 1686-FN does not become law, sections 4, 11, and 12 of this act shall take effect July 1, 2018 and sections 17-19 of this act shall not take effect.

357:21  Effective Date.  

I.  Sections 9, 13, and 15 of this act shall take effect July 1, 2018, at 12:01 a.m.

II.  Sections 4, 11, 12, and sections 17-19 of this act shall take effect as provided in section 20 of this act.

III.  The remainder of this act shall take effect July 1, 2018.

 

Approved: July 02, 2018

Effective Date:

I. Sections 9, 13 and 15 shall take effect July 1, 2018 at 12:01 a.m.

II. Sections 4, 11, 12 and 17-19 shall take effect as provided in section 20.

III. Remainder shall take effect July 1, 2018.

 

 

Links

HB1819 at GenCourtMobile

Action Dates

Date Body Type
Jan. 18, 2018 House Hearing
Jan. 25, 2018 House Exec Session
House Floor Vote
Feb. 7, 2018 House Floor Vote
Feb. 20, 2018 House Hearing
March 12, 2018 House Exec Session
March 21, 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

HB1819 Revision: 4282 Date: July 5, 2018, 8:32 a.m.
HB1819 Revision: 3835 Date: June 19, 2018, 10:13 a.m.
HB1819 Revision: 3768 Date: May 8, 2018, 9:25 a.m.
HB1819 Revision: 3326 Date: April 4, 2018, 1:25 p.m.
HB1819 Revision: 3038 Date: March 12, 2018, 3:37 p.m.
HB1819 Revision: 2387 Date: Dec. 27, 2017, 9:19 a.m.

Docket


: Signed by Governor Sununu 07/02/2018; Chapter 357; I. Sec 9;13 and 15 eff 07/01/2018 at 12:01 a.m.;II. Sec 4;11;12;17;18;19 eff as prov in sec 20;III. Rem eff 07/01/2018


May 23, 2018: Enrolled 05/23/2018


May 23, 2018: Enrolled (In recess 05/23/2018); SJ 18


May 23, 2018: Enrolled Bill Amendment # 2018-2124e: AA VV 05/23/2018


May 23, 2018: Enrolled Bill Amendment # 2018-2124e Adopted, VV, (In recess of 05/23/2018); SJ 18


May 10, 2018: House Concurs with Senate Amendment 1901s (Reps. Ladd, Major): MA VV 05/10/2018


May 3, 2018: Ought to Pass with Amendment 2018-1901s, MA, VV; OT3rdg; 05/03/2018; SJ 16


May 3, 2018: Sen. Bradley Floor Amendment # 2018-1901s, AA, VV; 05/03/2018; SJ 16


May 3, 2018: Committee Report: Ought to Pass, 05/03/2018;


May 3, 2018: Special Order to 05/03/2018, Without Objection, MA; 05/02/2018 SJ 15


May 2, 2018: Committee Report: Ought to Pass, 05/02/2018; SC 19


May 2, 2018: Special Order to 05/02/2018, Without Objection, MA; 04/26/2018 SJ 14


April 26, 2018: Committee Report: Ought to Pass, 04/26/2018; SC 18


April 4, 2018: Hearing: 04/04/2018, Room 100, SH, 09:20 am; SC 15


March 22, 2018: Introduced 03/22/2018 and Referred to Ways and Means; SJ 11


March 22, 2018: Ought to Pass with Amendment 1053h and 1175h: MA VV 03/22/2018 HJ 10 P. 51


March 22, 2018: FLAM # 2018-1175h (Rep. Lang): AA VV 03/22/2018 HJ 10 P. 51


March 22, 2018: Amendment # 2018-1053h: AA VV 03/22/2018 HJ 10 P. 51


March 21, 2018: Removed from Consent (Rep. Ladd) 03/21/2018 HJ 9 P. 2


: Committee Report: Ought to Pass with Amendment # 2018-1053h (Vote 23-0; CC)


March 21, 2018: Committee Report: Ought to Pass with Amendment # 2018-1053h for 03/21/2018 (Vote 23-0; CC) HC 11 P. 4


March 12, 2018: Executive Session: 03/12/2018 LOB 202


March 12, 2018: ==TIME CHANGE== Full Committee Work Session: 03/12/2018 01:00 PM LOB 202


March 8, 2018: ==CANCELLED== Full Committee Work Session: 03/08/2018 01:00 PM LOB 202


March 12, 2018: ==TIME CHANGE== Full Committee Work Session: 03/12/2018 01:00 PM LOB 202


Feb. 20, 2018: Public Hearing: 02/20/2018 10:00 AM LOB 202


Feb. 8, 2018: Referred to Ways and Means 02/08/2018 HJ 3 P. 28


Feb. 8, 2018: Ought to Pass with Amendment 0295h: MA RC 303-42 02/08/2018 HJ 3 P. 25


Feb. 8, 2018: Amendment # 2018-0295h: AA VV 02/08/2018 HJ 3 P. 25


: Committee Report: Ought to Pass with Amendment # 2018-0295h (Vote 17-3; RC)


Feb. 7, 2018: Committee Report: Ought to Pass with Amendment # 2018-0295h for 02/07/2018 (Vote 17-3; RC) HC 5 P. 21


Jan. 25, 2018: Executive Session: 01/25/2018 10:00 AM LOB 207


Jan. 18, 2018: Public Hearing: 01/18/2018 02:00 PM LOB 207


Jan. 3, 2018: Introduced 01/03/2018 and referred to Education HJ 1 P. 24