HB574 (2018) Detail

Increasing the limit on contributions to the community development finance authority for which an investment tax credit may be taken.


HB 574-FN - AS AMENDED BY THE HOUSE

 

9Mar2017... 0545h

2017 SESSION

17-0326

09/04

 

HOUSE BILL 574-FN

 

AN ACT increasing the limit on contributions to the community development finance authority for which an investment tax credit may be taken.

 

SPONSORS: Rep. Hunt, Ches. 11; Rep. Hennessey, Graf. 1; Sen. D'Allesandro, Dist 20

 

COMMITTEE: Ways and Means

 

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ANALYSIS

 

This bill increases the annual limit on contributions to the community development finance authority for which an investment tax credit may be taken.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

9Mar2017... 0545h 17-0326

09/04

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Seventeen

 

AN ACT increasing the limit on contributions to the community development finance authority for which an investment tax credit may be taken.

 

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

 

1  Community Development Finance Authority; New Investment Tax Credit; Annual Contributions Limit Increased.  Amend RSA 162-L:10, IV(b) to read as follows:

(b)  Contributions received by the authority for which credit is to be taken shall not exceed [$5,000,000] $6,000,000 in any state fiscal year.  Contributions received by the authority in excess of [$5,000,000] $6,000,000 in any state fiscal year shall not be eligible for credit in such fiscal year but may be carried forward to the next succeeding fiscal year or years and shall be given priority in determining the total contributions eligible for credit in such fiscal year.

2  Effective Date.  This act shall take effect July 1, 2017.

 

LBAO

17-0326

Amended 3/10/17

 

HB 574-FN- FISCAL NOTE

AS AMENDED BY THE HOUSE(AMENDMENT #2017-0545h)

 

AN ACT increasing the limit on contributions to the community development finance authority for which an investment tax credit may be taken.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2018

FY 2019

FY 2020

FY 2021

   Appropriation

$0

$0

$0

$0

   Revenue

Indeterminable Decrease

Indeterminable Decrease

Indeterminable Decrease

Indeterminable Decrease

   Expenditures

$0

$0

$0

$0

Funding Source:

  [ X ] General            [ X ] Education            [   ] Highway           [    ] Other

 

 

 

 

 

METHODOLOGY:

This bill increases the annual allowable contributions to the Community Development Finance Authority that may be used as a tax credit under RSA 162-L:10, IV(b) from $5,000,000 to $6,000,000.  This tax credit (CDFA tax credit) can be used against taxes imposed by any of the following individually or in combination; RSA 77-A, RSA 400-A, and RSA 77-E and is equal to 75 percent of the contribution made.  

 

The Department of Revenue Administration states this bill will result in an indeterminable decrease in state revenue up to a maximum of $750,000 annually (($6,000,000 - $5,000,000) * 75% = $750,000).  There is no data available to estimate the actual impact this bill will have on state revenue.  During prior years taxpayers have claimed the CDFA tax credit as follows: $3,140,000 in FY 2014, $3,687,000 in FY 2015, and $3,168,000 in FY 2016.  The Department will absorb any costs within its existing budget.   

 

The Community Development Finance Authority states this bill is expected to increase its workload but any such costs will be absorbed within its existing budget which is not appropriated by Legislature.  Pursuant to RSA 162-L CDFA is a body corporate and politic and a public instrumentality of the State as well as a nonprofit corporation granted flexibility not generally inherent in most government agencies.     

 

AGENCIES CONTACTED:

Department of Revenue Administration and Community Development Finance Authority

 

Links

HB574 at GenCourtMobile

Action Dates

Date Body Type
Jan. 31, 2017 House Hearing
Feb. 28, 2017 House Exec Session
March 8, 2017 House Floor Vote
March 22, 2017 Senate Hearing

Bill Text Revisions

HB574 Revision: 2514 Date: Dec. 18, 2017, 10:11 a.m.
HB574 Revision: 2515 Date: Jan. 25, 2017, 3:25 p.m.

Docket

Date Status
Jan. 5, 2017 Introduced 01/05/2017 and referred to Ways and Means HJ 3 P. 19
Jan. 31, 2017 Public Hearing: 01/31/2017 02:00 PM LOB 202
Feb. 28, 2017 Executive Session: 02/28/2017 LOB 202
March 8, 2017 Majority Committee Report: Ought to Pass with Amendment # 2017-0545h for 03/08/2017 (Vote 19-3; RC)
Minority Committee Report: Inexpedient to Legislate
March 9, 2017 Amendment # 2017-0545h: AA VV 03/09/2017 HJ 10 P. 57
March 9, 2017 Ought to Pass with Amendment 0545h: MA VV 03/09/2017 HJ 10 P. 57
March 9, 2017 Introduced 03/09/2017 and Referred to Ways and Means; SJ 9
March 22, 2017 Hearing: 03/22/2017, Room 100, SH, 09:00 am; SC 15
May 18, 2017 Committee Report: Rereferred to Committee, 05/18/2017; SC 23
May 18, 2017 Rereferred to Committee, MA, VV; 05/18/2017; SJ 17
Jan. 3, 2018 Committee Report: Referred to Interim Study, 01/03/2018; SC 48
Jan. 3, 2018 Refer to Interim Study, RC 14Y-9N, MA; 01/03/2018; SJ 1