Revision: March 15, 2018, 7:34 a.m.
SB 563-FN - AS AMENDED BY THE SENATE
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
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03/08/2018 0846s 18-2888
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 Paragraph; Community Development Finance Authority; Recovery Friendly Workplace Initiatives Tax Credit. Amend RSA 162-L:4 by inserting after paragraph I the following new paragraph:
I-a. The authority shall dedicate the contributions received pursuant to RSA 162-L:10, I-a exclusively to investing or lending to nonprofit organizations that deliver recovery friendly workplace programs. Such contributions shall not exceed $1,000,000 in any state fiscal year. In this section, "recovery friendly workplace programs" means programs that educate employers in evidence-based practices that reduce substance misuse in the workplace and create work environments that are conducive to enabling persons in addiction and mental health recovery to sustain and re-enter the workforce as productive members of society. Such programs shall include the training of all employees, including specialized training for human resources personnel, and shall be consistent with Substance Abuse and Mental Health Services Administration (SAMHSA) standards. The term "recovery friendly workplace programs" also includes the 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. On or by September 30, 2020, the authority shall make public on its website and provide a report to the governor, the president of the senate, and the speaker of the house of representatives concerning the effectiveness of the recovery friendly workplace initiatives tax credit, including, but not limited to, how many workers in recovery were attracted to and retained in the workforce.
I-a. A recovery friendly workplace initiatives tax credit equal to up to 75 percent of the contribution made during the period of July 1, 2018 through June 30, 2020 may be carried forward for no more than 5 succeeding tax years and 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.
(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.
XVI. The recovery friendly workplace initiatives tax credit as computed in RSA 162-L:10, I-a.
77-E:3-e Recovery Friendly Workplace Initiatives Tax Credit. The recovery friendly workplace initiatives tax credit, as computed in RSA 162-L:10, I-a, shall be allowed against the tax due under this chapter.
SB 563-FN- FISCAL NOTE
AS AMENDED BY SENATE (AMENDMENT #2018-0787s and 2018-0846s)
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
Estimated Increase / (Decrease)
Maximum Decrease of $750,000
[ X ] General [ X ] Education [ ] Highway [ ] Other
This bill establishes a recovery friendly workplace initiatives tax credit equal to up to 75 percent of the contribution made to the Community Development Finance Authority for the period of July 1, 2018 through June 30, 2020. 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. Taxpayers may carry forward unused credits for no more than 5 succeeding tax years. 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 the first year of the tax credit program and due to the carry forward provision the decrease in revenue is indeterminable in the second year and later of the 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 nonprofit organizations that deliver recovery friendly workplace programs. The Authority states this tax credit program will readily fit in with the Authority's existing tax credit program and outreach efforts.
Department of Revenue Administration and Community Development Finance Authority