HB 1580

AN ACT allowing businesses to apply the investment tax credit to contributions made to public schools, charter schools, and scholarship funding organizations.

SPONSORS: Rep. Alger, Graf 9; Rep. O'Hearn, Hills 26; Rep. Hunt, Ches 10; Rep. Kurk, Hills 5; Rep. N. Wall, Hills 22; Sen. Roberge, Dist 9; Sen. Gordon, Dist 2; Sen. Johnson, Dist 3; Sen. Brown, Dist 17; Sen. Krueger, Dist 16

This bill allows businesses to apply the investment tax credit to contributions made to public schools, charter schools, and scholarship funding organizations.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

AN ACT allowing businesses to apply the investment tax credit to contributions made to public schools, charter schools, and scholarship funding organizations.

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

1 Community Development Finance Authority; Definition; "Other Nonprofit Organizations and Municipal Governments Involved in Community Development." Amend RSA 162-L:1, III to read as follows:

III. "Other nonprofit organizations and municipal governments involved in community development" means a nonprofit organization organized under the laws of the state or municipal government to carry out purposes related to community development, improvement, revitalization, or other activities consistent with the purposes of this chapter. "Other nonprofit organizations and municipal governments involved in community development" includes public schools, charter schools, and scholarship funding organizations.

2 New Subparagraph; Powers and Duties of the Community Development Finance Authority. Amend RSA 162-L:4, I by inserting after subparagraph (i) the following new subparagraph:

(ii) Verify that contributions made to public schools, charter schools, and scholarship funding organizations are qualified for the investment tax credit.

3 Section Heading; Verification of Contributions Added. Amend the section heading of RSA 162-L:5 to read as follows:

162-L:5 Technical Assistance; Grants; Verification of Contributions to Public Schools, Charter Schools, and Scholarship Funding Organizations.

4 New Paragraph; Verification of Contributions. Amend RSA 162-L:5 by inserting after paragraph II the following new paragraph:

III. The authority shall verify that contributions made to public schools, charter schools, and scholarship funding organizations are qualified for the investment tax credit.

I. An investment tax credit equal to 75 percent of the contribution made to the authority or verified by the authority under RSA 162-L:5, III during the contributor's tax year shall be allowed against any of the following individually or in combination:

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. The credit or any unused portion thereof may be carried forward for no more than 5 succeeding years, but shall not exceed $1,000,000 in any given tax year.

IV.(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 or verified by the authority.

(b) Contributions received or verified by the authority for which credit is to be taken shall not exceed $5,000,000 in any state fiscal year. Contributions received or verified by the authority in excess of $5,000,000 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.

V. Estimated tax payments under RSA 400-A:32 due and payable after the date of contribution to the authority or the date the contribution is verified by the authority may be reduced by the credit allowable under this section.

AN ACT allowing businesses to apply the investment tax credit to contributions made to public schools, charter schools, and scholarship funding organizations.

The Department of Revenue Administration indicates that this bill will have an indeterminate fiscal impact on state revenue in FY 2001 and each year thereafter. There is no fiscal impact on state, county, and local expenditures or county and local revenue.

The Department states that this bill increases the type of contribution the Community Development Finance Authority can accept, but does not change the cap on donations that can be accepted. The Department cannot determine how this will impact CDFA contributions or any potential changes in the credits that would reduce business taxes.