Revision: Dec. 20, 2017, 8:20 a.m.
SB 411-FN-A - AS INTRODUCED
2018 SESSION
18-2914
10/05
SENATE BILL 411-FN-A
AN ACT eliminating the cap on the research and development tax credit.
SPONSORS: Sen. Innis, Dist 24; Sen. Bradley, Dist 3; Sen. Gannon, Dist 23; Sen. Carson, Dist 14; Sen. Birdsell, Dist 19; Rep. Nigrello, Rock. 16; Rep. Emerick, Rock. 21; Rep. Bean, Rock. 21
COMMITTEE: Ways and Means
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ANALYSIS
This bill removes the annual $7,000,000 total cap amount on the research and development credit against business taxes.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
18-2914
10/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eighteen
AN ACT eliminating the cap on the research and development tax credit.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Research and Development Credit; Cap Amount Deleted. Amend RSA 77-A:5, XIII(a) to read as follows:
XIII.(a) There shall be allowed a research and development tax credit for qualified manufacturing research and development expenditures made or incurred during the fiscal year, as follows:
(1) [The aggregate of tax credits issued by the commissioner to all taxpayers claiming the credit shall not exceed $7,000,000 for any fiscal year.
(2)] Each credit shall be used to offset the taxpayer's tax liability within the subsequent 5 tax years. The amount of the credit shall be the lesser of:
(A) Ten percent of the excess of the qualified manufacturing research and development expenses for the taxable year over the base amount; or
(B) [The proportional share of the maximum aggregate credit amount allowed in subparagraph (1);
(C)] $50,000.
[(3)] (2) Taxpayers shall apply for the tax credit on forms provided by the commissioner and shall be accompanied by information or records required by the commissioner. Such application shall be postmarked no later than June 30 following the tax year during which research and development occurred.
[(4)] (3) A determination on the final amount of the credit awarded by the commissioner to each taxpayer claiming the credit shall be made no later than September 30 of each year.
[(5)] (4) Wages for which a credit is taken under this paragraph shall not also be eligible for a credit under RSA 162-N.
2 Effective Date. This act shall take effect July 1, 2018.
18-2914
11/28/17
SB 411-FN-A- FISCAL NOTE
AS INTRODUCED
AN ACT eliminating the cap on the research and development tax credit.
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
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| Estimated Increase / (Decrease) | |||
STATE: | FY 2019 | FY 2020 | FY 2021 | FY 2022 |
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 | |||
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METHODOLOGY:
This bill removes the $7,000,000 cap on the research and development tax credit. The Department anticipates the removal of the cap will result in an increased participation in the tax credit program. The Department has no definitive method to determine how many taxpayers will request the research and development tax credit or the future value of those requests to determine the specific decrease in State General Fund and Education Trust Fund revenue.
The Department is able to provide amount of research and development tax credit requests for the period of FY 2016 through FY 2018.
Fiscal Year | Statutory Cap | Amount of R&D Credit Requested |
2018 | $7,000,000 cap | $7,575,079 |
2017 | $2,000,000 cap | $7,368,097 |
2016 | $2,000,000 cap | $6,725,106 |
AGENCIES CONTACTED:
Department of Revenue Administration