Revision: Jan. 25, 2017, 10:26 a.m.
SB 76-FN-A - AS INTRODUCED
SENATE BILL 76-FN-A
SPONSORS: Sen. D'Allesandro, Dist 20; Sen. Bradley, Dist 3; Sen. Feltes, Dist 15; Sen. Innis, Dist 24
COMMITTEE: Ways and Means
This bill allows a taxpayer the option to receive a rebate of the research and development tax credit against business profits taxes. The rebate is 75 percent of the amount of the credit awarded. The bill makes an appropriation to the commissioner of the department of revenue administration for the purposes of this bill.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
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:
(2) Each credit shall be used to offset the taxpayer’s tax liability within the subsequent 5 tax years, or rebated as provided in subparagraph (d). The amount of the credit shall be the lesser of:
(d) When applying for the tax credit, a taxpayer may elect on the form provided by the department to not offset tax liability but instead receive a rebate equal to 75 percent of the final amount of the credit awarded by the commissioner. Any such discount in the credit shall not result in additional research and development credits under this paragraph for a fiscal year. Rebates shall be paid by the commissioner by September 30 of each year. Taxpayers may not take a partial rebate, but shall elect to take either the full rebate option or the tax credit. If a taxpayer elects to take a rebate, the rebate shall be made in the current tax year and not carried forward.
XXXIV. Have the authority to share information and statistics on the utilization of the research and development tax credit and optional rebate under RSA 77-A:5, XIII.
4 Appropriation. The sum of $1,000,000 for the fiscal year ending June 30, 2018 and $1,000,000 for the fiscal year ending June 30, 2019 are hereby appropriated to the commissioner of the department of revenue administration for the purposes of this act. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.
SB 76-FN-A- FISCAL NOTE
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
Estimated Increase / (Decrease)
[ X ] General [ ] Education [ ] Highway [ ] Other
This bill allows a taxpayer to request a rebate equal to 75 percent of the final amount of credit awarded for the research and development tax credit in lieu of a credit being awarded. The bill appropriates $1,000,000 in FY 2018 and $1,000,000 in FY 2019 for the purpose of rebating the tax credit. The bill also amends the Department's confidentiality provision to provide the Department with the authority to share the information and statistics on the research and development tax credit. The Department determined based on the research and development tax credits awarded versus used in the 2013 and 2014 program years, approximately 17 percent of the tax credits are not claimed. If it is assumed 17 percent of the credits will not be claimed, then approximately $1,190,000 in FY 2018 tax credits will not be claimed ($7,000,000 tax credit limit * 17%). If it is further assumed that the unclaimed credit will be requested as a rebate, the fiscal impact would be $892,500 ($1,190,000 * 75%).
Department of Revenue Administration