Bill Details - SB270 (2019)

SB 270-FN - AS INTRODUCED

 

 

2019 SESSION

19-0475

10/04

 

SENATE BILL 270-FN

 

AN ACT establishing a tax credit against the business profits tax for donations to career and technical education centers.

 

SPONSORS: Sen. Watters, Dist 4; Sen. Bradley, Dist 3; Sen. D'Allesandro, Dist 20; Sen. Fuller Clark, Dist 21; Sen. Giuda, Dist 2; Sen. Gray, Dist 6; Sen. Levesque, Dist 12; Sen. Morgan, Dist 23; Sen. Sherman, Dist 24; Rep. Shaw, Hills. 16

 

COMMITTEE: Ways and Means

 

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ANALYSIS

 

This bill establishes a tax credit against business profits taxes for donations to career and technical education centers.

 

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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

19-0475

10/04

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Nineteen

 

AN ACT establishing a tax credit against the business profits tax for donations to career and technical education centers.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  New Section; Regional Career and Technical Education Centers; Donations.  Amend RSA 188-E by inserting after section 9 the following new section:

188-E:9-a  Donations to Regional Career and Technical Education Center Programs.

I.  For purposes of this section "state fiscal year" shall mean the year beginning July 1 and ending June 30.

II.  A school district may accept a charitable donation of:

(a)  Up to 50 percent of the cost of apprenticeship and training programs offered by the regional CTE center, including the compensation of employees in direct supervision and training of students in a CTE center program.

(b)  Up to 50 percent of the salary paid to interns, apprentices, and trainees enrolled in a CTE center program.

(c)  Tangible personal property for a related use by an educational program offered by the regional CTE center.

III.  The school district shall report within 30 days the donor name and the value of each charitable donation under paragraph II to the department of education.

IV.  A donor who makes a qualifying charitable contribution under paragraph II shall be allowed a credit against the business profits tax imposed under RSA 77-A as computed by the department of education in paragraph V.

V.  On or before August 1 of each year, the department of education shall compute the amount of tax credits available from the donations made during the prior state fiscal year.  The aggregate of tax credits issued by the department of education to all donors claiming the credit under this section shall not exceed $500,000 for any state fiscal year.  Credits claimed which exceed the total allowed shall be granted in the donor's proportional share of the maximum aggregate credit amount.  On or before October 1 of each year, the department of education shall report all credits issued to the department of revenue administration.

VI.  On or before September 1 of each year, the department of education shall provide a donor with a written statement of the amount of tax credit available which may be used by a donor for purposes of the tax credit against business profits taxes provided in RSA 77-A:5, XVI, computed according to paragraph V.

VII.  No later than January 1, 2020, the commissioner of the department of education shall adopt rules pursuant to RSA 541-A, relative to:

(a)  The administration of the issuance of tax credits for qualifying charitable donations under this section.

(b)  The design and content of the reports, forms, and statements required to be filed with, or issued by, the department of education under this section.

2  New Paragraph; Business Profits Tax; Credit for Donations to Regional Vocational Education Centers.  Amend RSA 77-A:5 by inserting after paragraph XV the following new paragraph:

XVI.  The tax credit computed under RSA 188-E:9-a for donations to regional career and technical education center programs, provided that the credit allowed for a taxpayer under this paragraph shall not exceed 25 percent of the tax due under this chapter for such taxpayer before any credits under RSA 77-A:5 are taken into account.

3  Applicability.  The tax credit under RSA 77-A:5, XVI shall apply to taxable periods ending after April 1, 2019.

4  Effective Date.  This act shall take effect upon its passage.

 

LBAO

19-0475

1/25/19

 

SB 270-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT establishing a tax credit against the business profits tax for donations to career and technical education centers.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2020

FY 2021

FY 2022

FY 2023

   Appropriation

$0

$0

$0

$0

   Revenue

Potential Decrease of $500,000

Indeterminable Decrease

Indeterminable Decrease

Indeterminable Decrease

   Expenditures

Indeterminable

Indeterminable

Indeterminable

Indeterminable

Funding Source:

  [ X ] General            [ X ] Education            [   ] Highway           [    ] Other

 

 

LOCAL:

 

 

 

 

   Revenue

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

   Expenditures

$0

$0

$0

$0

 

METHODOLOGY:

This bill establishes a credit against the Business Profits Tax for donations to regional career and technical education centers programs.  The aggregate of tax credits for donations to regional career and technical education centers shall not exceed $500,000 in any state fiscal year.  If the credits claimed exceed the maximum aggregate credit amount, they shall be granted in the donor's proportional share.  The tax credit allowed for a taxpayer against the Business Profits Tax in any taxable period shall not exceed 25 percent of the taxpayer's Business Profits Tax due before any credits under RSA 77-A:5 are taken into account.

 

The Department of Education is responsible for administering the issuance of the tax credits for qualifying charitable donations.  The Department is required to compute the amount of tax credits available from the donations made during the prior state fiscal year by August 1 of each year and issuing the tax credits to donors with a written statement by September 1 of each year.  The Department shall report all credits issued to the Department of Revenue Administration by October 1 of each year.

 

The Department of Revenue Administration states this bill will decrease General Fund and Education Trust Fund revenue by an indeterminable amount.  The Department has no information to determine the amount of tax credits that would be claimed or issued in any state fiscal year or the amount that would be allowed as credit against the Business Profits Tax due to the 25 percent ceiling to estimate the fiscal impact.  The Department does note that the maximum aggregate credit amount issued in any state fiscal year is limited to $500,000.  Depending on the taxpayer's taxable period, the credit may be used in the same fiscal year issued or the next fiscal year.  The Department of Revenue Administration states it would need to the update the Business Profits Tax return and its information management systems as a result of this bill.  The Department assumes it could absorb these changes within its existing budget.

 

The Department of Education states the fiscal impact of this bill on state revenues and expenditures and local revenue is indeterminable.  

 

AGENCIES CONTACTED:

Department of Revenue Administration and Department of Education

 

Docket

Date Status
Jan. 3, 2019 Introduced 01/03/2019 and Referred to Ways and Means; SJ 4
Feb. 20, 2019 Hearing: 02/20/2019, Room 100, SH, 09:15 am; SC 11
March 14, 2019 Committee Report: Ought to Pass, 03/14/2019; SC 13
March 14, 2019 Ought to Pass: MA, VV; OT3rdg; 03/14/2019; SJ 8

Action Dates

Date Body Type
Feb. 20, 2019 Senate Hearing
March 14, 2019 Senate Floor Vote

Bill Text Revisions

SB270 Revision: 5251 Date: Jan. 25, 2019, 4:21 p.m.