SB661 (2020) Detail

(New Title) relative to economic revitalization zone tax credits and the New Hampshire college graduate retention incentive partnership (NH GRIP).


SB 661-FN - AS AMENDED BY THE SENATE

 

02/13/2020   0518s

2020 SESSION

20-2819

10/05

 

SENATE BILL 661-FN

 

AN ACT relative to economic revitalization zone tax credits and the New Hampshire college graduate retention incentive partnership (NH GRIP).

 

SPONSORS: Sen. Birdsell, Dist 19; Sen. Ward, Dist 8; Sen. Bradley, Dist 3; Sen. D'Allesandro, Dist 20; Sen. Dietsch, Dist 9

 

COMMITTEE: Ways and Means

 

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AMENDED ANALYSIS

 

This bill requires the commissioner of business and economic affairs to certify each application for an economic revitalization zone tax credit, modifies the calculation of the credits which may be issued to a taxpayer by the commissioner of business and economic affairs, and extends the prospective repeal of the economic revitalization zone tax credit program to January 1, 2028.

 

The bill also requires the department of business and economic affairs to certify the agreements that employers participating in the New Hampshire college graduate retention incentive partnership (NH GRIP) offer to employees.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

02/13/2020   0518s 20-2819

10/05

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty

 

AN ACT relative to economic revitalization zone tax credits and the New Hampshire college graduate retention incentive partnership (NH GRIP).

 

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

 

1  Eligibility Requirements for Business Tax Credits.  Amend RSA 162-N:3 to read as follows:

162-N:3  Eligibility Requirements for Business Tax Credits.  No economic revitalization zone tax credits shall be allowed to any taxpayer unless the taxpayer's project receives written certification in accordance with RSA 162-N:4, I from the commissioner of business and economic affairs that it [will expand] has expanded the commercial or industrial base in a designated economic revitalization zone and [will create] created new jobs in the state.

2  Economic Revitalization Zone Tax Credit Letter of Certification.  Amend RSA 162-N:4 to read as follows:

162-N:4  Economic Revitalization Zone Tax Credit [Agreement] Letter of Certification.

I.  The commissioner of business and economic affairs shall [enter into a written] certify each application for an economic revitalization zone tax credit [agreement] with each taxpayer[; such agreement to be certified by the commissioner of business and economic affairs under this section].

II.  The [agreement] commissioner, upon satisfaction of the requirements in RSA 162-N:3, shall [contain] issue a letter of certification containing such provisions as the commissioner of business and economic affairs determines to be in the public interest, which shall include, but not be limited to:

(a)  Quality and quantity of full-time jobs [to be] created.

(b)  Duration of the taxpayer's commitments with respect to the economic revitalization zone.

(c)  The amount of the taxpayer's investment in the project.

(d)  A precise definition of the location of the facility eligible for the credit.

[(e)  The maximum amount of the economic revitalization zone tax credit that will be allowed to the business under this agreement for jobs created and for construction or reconstruction expenses.]

[II.] III.  The [agreement] letter of certification shall contain a determination of the final amount of the credit awarded and shall be provided to the commissioner of revenue administration and the taxpayer claiming the credit no later than March [10] 31 of each year.

3  Determination of Credit.  Amend RSA 162-N:6 to read as follows:

162-N:6  Determination of Economic Revitalization Zone Tax Credits Eligible Amount.  For the purpose of determining the economic revitalization zone tax credit that the taxpayer is eligible to receive, the amount of the credit to be taken shall be [the lesser of the following:

I.  The maximum amount of the economic revitalization zone tax credit as stated in the agreement as specified by RSA 162-N:4, I(e); or

II.] the sum of the following:

[(a)] I.  4 percent of the salary for each new full-time job created in the calendar year with a wage less than or equal to 1.75 times the then current state minimum wage.

[(b)] II.  5 percent of the salary for each new full-time job created in the calendar year with a wage greater than 1.75 times the then current state minimum wage and less than or equal to 2.5 times the then current state minimum wage.

[(c)] III.  6 percent of the salary for each new full-time job created in the calendar year with a wage greater than 2.5 times the then current state minimum wage.

[(d)] IV.  4 percent of the lesser of the following:

[(1)] (a) The actual cost incurred in the calendar year of creating a new facility or renovating an existing facility, and expenditures for machinery, equipment, or other materials, except inventory.

[(2)] (b)   $20,000 for each new full-time job created in the calendar year.

4  Extension of Prospective Repeal of RSA 162-N.  Amend 2007, 263:176, X, as amended by 2010, 311:1 and 2014, 139:1 to read as follows:

X.  Section 123 of this act shall take effect[ July 1, 2020] January 1, 2028.

5  Extension of Prospective Repeal of RSA 162-N:2-a.  Amend 2015, 265:9  to read as follows:

I.  Section 7 of this act shall take effect [July 1, 2020] January 1, 2028.

6  New Hampshire College Graduate Retention Incentive Partnership (NH GRIP); Definition; Certification.  Amend RSA 12-O:46, I to read as follows:

I.  “Certification” means written verification from the department of business and economic affairs that the agreement to be used between the participating employer and the employee meets the requirements of RSA 12-O:48.

I-a.  "Commissioner" means the commissioner of the department of business and economic affairs.

7  Graduate Retention Incentive Partnership; Definitions.  Amend RSA 12-O:46, VII to read as follows:

VII.  "Participating employer agreement" or "agreement" means an agreement [prepared jointly by the department of business and economic affairs in consultation with the New Hampshire College and University Council and the Business and Industry Association of New Hampshire] that an employer will use to offer each employee an incentive in the amount and duration provided in RSA 12-O:48 and which is to be certified by the department of business and economic affairs.

8  Graduate Retention Incentive Partnership; Advertising; Department Certification.  Amend RSA 12-O:49 to read as follows:

12-O:49  Advertising.  Upon certification, the department shall, in cooperation with the Business and Industry Association of New Hampshire, the New Hampshire College and University Council, the New Hampshire Higher Education Assistance Fund, the New Hampshire Coalition for Business and Education, and Stay, Work, Play NH, advertise to New Hampshire employers and New Hampshire college students the details of NH GRIP, through print and electronic media.  The department shall maintain a list of employers who have a valid participating employer agreement and shall make the list available on the department's public Internet site as well as in writing.

9  Effective Date.  

I.  Sections 4 and 5 of this act shall take effect June 30, 2020.

II.  The remainder of this act shall take effect July 1, 2020.

 

LBAO

20-2819

Amended 2/18/20

 

SB 661-FN- FISCAL NOTE

AS AMENDED BY THE SENATE (AMENDMENT #2020-0518s)

 

AN ACT relative to economic revitalization zone tax credits and the New Hampshire college graduate retention incentive partnership (NH GRIP).

 

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

$0

Indeterminable Decrease

Indeterminable Decrease

Indeterminable Decrease

   Expenditures

$0

$0

$0

$0

Funding Source:

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

 

METHODOLOGY:

This bill modifies the method in which economic revitalization zone tax credits are awarded by the Department of Business and Economic Affairs (DBEA) and it extends the repeal date for such credits from July 1, 2020 to January 1, 2028.

 

DBEA states the proposed language clarifies the certification process with no resulting cost to the Department.  The extension of the program date also has no fiscal impact on the Department's operations.

 

The Department of Revenue Administration (DRA) states any fiscal impact would begin in FY 2021.  DRA is unable to project to what extent any procedural changes would affect the number of  taxpayers who would receive the credit or the amount of such credits to be issued as result of the procedural changes.  The $825,000 aggregate limit for the credits issued in any calendar year is unchanged.  Amounts carried forward do not count against the $825,000 cap. The amount of these credits used against the Business Profits Tax, Business Enterprise Tax, or both, was $609,000 in FY 2019, $938,000 in FY 2018 and $823,000 in FY 2017.  Any credits against the Business Profits Tax or Business Enterprise Tax will decrease revenue to the General Fund and Education Trust Fund.

 

AGENCIES CONTACTED:

Department of Business and Economic Affairs and Department of Revenue Administration

 

Links

SB661 at GenCourtMobile
SB661 Discussion

Action Dates

Date Body Type
Jan. 22, 2020 Senate Hearing
Feb. 13, 2020 Senate Floor Vote
March 19, 2020 Senate Floor Vote

Bill Text Revisions

SB661 Revision: 8125 Date: Feb. 18, 2020, 12:44 p.m.
SB661 Revision: 7978 Date: Jan. 14, 2020, 1:09 p.m.

Docket

Date Status
Jan. 8, 2020 Introduced 01/08/2020 and Referred to Ways and Means; SJ 2
Jan. 22, 2020 Hearing: 01/22/2020, Room 100, SH, 09:10 am; SC 3
Feb. 13, 2020 Committee Report: Ought to Pass with Amendment # 2020-0518s, 02/13/2020; SC 6
Feb. 13, 2020 Committee Amendment # 2020-0518s, AA, VV; 02/13/2020; SJ 4
Feb. 13, 2020 Ought to Pass with Amendment 2020-0518s, MA, VV; Refer to Finance Rule 4-5; 02/13/2020; SJ 4
March 19, 2020 Committee Report: Ought to Pass SC 11
June 16, 2020 Placed on Laid on Table Consent List and Laid on Table, MA, VV; 06/16/2020; SJ 8
June 16, 2020 Pending Motion Ought to Pass; 06/16/2020; SJ 8