Revision: Dec. 18, 2017, 10:11 a.m.
HB 574-FN - AS AMENDED BY THE HOUSE
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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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.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
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seventeen
Be it Enacted by the Senate and House of Representatives in General Court convened:
(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.
HB 574-FN- FISCAL NOTE
AS AMENDED BY THE HOUSE(AMENDMENT #2017-0545h)
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
Estimated Increase / (Decrease)
[ X ] General [ X ] Education [ ] Highway [ ] Other
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.
Department of Revenue Administration and Community Development Finance Authority