Revision: Jan. 9, 2018, 9:18 a.m.
SB 563-FN - AS INTRODUCED
2018 SESSION
18-2888
10/05
SENATE BILL 563-FN
AN ACT establishing a recovery friendly workplace initiatives tax credit against business taxes administered by the community development finance authority.
SPONSORS: Sen. Bradley, Dist 3; Rep. Hinch, Hills. 21
COMMITTEE: Ways and Means
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ANALYSIS
This bill establishes a credit against the business profits tax and the business enterprise tax for donations made to the community development finance authority for recovery friendly workplace initiatives.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
18-2888
10/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eighteen
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Section; Community Development Finance Authority; Recovery Friendly Workplace Initiatives Tax Credit. Amend RSA 162-L by inserting after section 10 the following new section:
162-L:10-a Recovery Friendly Workplace Initiatives Tax Credit.
I. A recovery friendly workplace initiatives tax credit equal to 75 percent of the contribution made to the authority during the contributor's tax year shall be allowed against any of the following individually or in combination:
(a) Taxes imposed by RSA 77-A.
(b) Taxes imposed by RSA 400-A.
(c) Taxes imposed by RSA 77-E.
II. Credits provided by this section applied against the liabilities imposed by RSA 400-A and RSA 77-E shall be deemed to be taxes paid for the purpose of RSA 77-A:5, III and X, respectively.
III.(a) The credit provided by this section shall be available to contributors on or after contributions for which credit is to be taken are actually received by the authority.
(b) Contributions received by the authority for which credit is to be taken shall not exceed $1,000,000 in any state fiscal year. Contributions under this section are in addition to and separate from contributions under RSA 162-L:10.
IV. Estimated tax payments under RSA 400-A:32 due and payable after the date of contribution to the authority may be reduced by the credit allowable under this section.
V. The authority shall dedicate the contributions under this section to investing or lending to business in this state which establish recovery friendly workplace initiatives which contribute to the economic well-being of the state. In this section, “recovery friendly workplace initiatives" means evidence-based practices that reduce substance misuse in the workplace and create a work environment that is conducive to enabling persons in addiction and mental health recovery to sustain and re-enter the workforce as productive members of society. This term also includes propagation of public awareness and information that supports health and safety for employees while promoting active community engagement that will assist in reducing the negative impact of unaddressed substance misuse and untreated mental health.
2 New Paragraph; Business Profits Tax; Recovery Friendly Workplace Initiatives Tax Credit. Amend RSA 77-A:5 by inserting after paragraph XV the following new paragraph:
XVI. The recovery friendly workplace initiatives tax credit as computed in RSA 162-L:10-a.
3 New Section; Business Enterprise Tax; Recovery Friendly Workplace initiatives Tax Credit. Amend RSA 77-E by inserting after section 3-d the following new section:
77-E:3-e Recovery Friendly Workplace Initiatives Tax Credit. The recovery friendly workplace initiatives tax credit, as computed in RSA 162-L:10-a, shall be allowed against the tax due under this chapter.
4 Applicability. The tax credits authorized in this act shall apply to tax years beginning on and after January 1, 2019.
5 Effective Date. This act shall take effect July 1, 2018.
18-2888
12/19/17
SB 563-FN- FISCAL NOTE
AS INTRODUCED
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 establishes a recovery friendly workplace initiatives tax credit equal to 75 percent of the contribution made to the Community Development Finance Authority. This credit may be applied individually or in combination against the Business Profits Tax, Business Enterprise Tax and/or the Insurance Premium Tax. Any credit which is applied to liabilities imposed by the Business Enterprise Tax or Insurance Premium Tax statutes shall be considered taxes paid for the purpose of the Business Profits Tax statute. The "taxes paid" treatment does not increase the overall fiscal impact of this bill or otherwise result in a double-benefit to the taxpayer as the Business Enterprise Tax liability being offset by the proposed tax credit would have been used to offset the taxpayer's Business Profits Tax liability if the proposed tax credit is not available. The aggregate tax credits issued to all taxpayers claiming the credit shall not exceed $750,000 for any fiscal year, which is 75 percent of the maximum contribution of $1,000,000 that can be received by the Community Development Finance Authority in any fiscal year. The Department of Revenue Administration is not able to determine the decrease in State General Fund and Education Trust Fund revenue as the Department has no definitive method to determine how many taxpayers will make qualifying contributions to the Community Development Finance Authority. The maximum decrease in State General Fund and Education Trust Fund revenue is $750,000 in each year of the tax credit program.
The Department would need to update all necessary tax return forms and electronic management systems related to changes contained in this bill. However, the Department states it is able to administer the changes contained in this bill within its operating budget.
This bill directs the Community Development Finance Authority dedicate contributions to investing or lending to business in New Hampshire which establish recovery friendly workplace initiatives which contribute to the economic well-being of the state. The Authority states this tax credit program will readily fit in with the Authority's existing tax credit program and outreach efforts.
AGENCIES CONTACTED:
Department of Revenue Administration and Community Development Finance Authority