SB 173-FN-A - AS INTRODUCED
2001 SESSION
09/01
SENATE BILL 173-FN-A
AN ACT creating a business profits tax credit for certain donations made for science and technology equipment and facilities to the university system of New Hampshire or any of its component institutions.
SPONSORS: Sen. Larsen, Dist 15; Sen. Cohen, Dist 24; Sen. O'Neil, Dist 18; Sen. Eaton, Dist 10; Sen. Wheeler, Dist 21; Sen. Pignatelli, Dist 13; Sen. D'Allesandro, Dist 20; Sen. Gordon, Dist 2; Rep. Snyder, Straf 14
This bill creates a business profits tax credit for certain donations made for science and technology equipment and facilities to the university system of New Hampshire or any of its component institutions.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
01-0915
09/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand One
AN ACT creating a business profits tax credit for certain donations made for science and technology equipment and facilities to the university system of New Hampshire or any of its component institutions.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Paragraph; Business Profits Tax Credits. Amend RSA 77-A:5 by inserting after paragraph XI the following new paragraph:
XII. The university system of New Hampshire science and technology investment tax credit as computed in RSA 187-A:25-b.
2 New Subdivision; University System of New Hampshire Science and Technology Investment Tax Credit. Amend RSA 187-A by inserting after section 25-a the following new subdivision:
Science and Technology Investment Tax Credit
187-A:25-b Science and Technology Investment Tax Credit.
I. In this section, "contribution" or "contributions" mean cash donations made to the university system of New Hampshire or any of its component institutions or foundations for the purpose of acquiring equipment or constructing, renovating, repairing, or maintaining any facility used for science and technology educational purposes.
II. A investment tax credit equal to 75 percent of the contribution made during the contributor's tax year 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.
III. 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.
IV. 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.
V.(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.
(b) Contributions received for which credit is to be taken shall not exceed $5,000,000 in any state fiscal year. Contributions received 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.
VI. Estimated tax payments under RSA 400-A:32 due and payable after the date of contribution may be reduced by the credit allowable under this section.
3 Effective Date. This act shall take effect July 1, 2001.
LBAO
01-0915
Revised 5/7/01
SB 173 FISCAL NOTE
AN ACT creating a business profits tax credit for certain donations made for science and technology equipment and facilities to the university of New Hampshire or any of its component institutions.
FISCAL IMPACT:
The Department of Revenue Administration indicates this bill will decrease state general fund revenue by $3.75 million in FY 2002 and each year thereafter. The University System of New Hampshire indicates this bill will increase state general fund revenue and expenditures by $5 million in FY 2002 and each year thereafter. There is no fiscal impact on county and local revenue or expenditures.
METHODOLOGY:
The Department of Revenue assumed, based on past experience with donative tax credits, that 100% of the tax credit available will be used. The bill sets the maximum amount of donations allowed at $5 million per year, therefore, the tax credit would be 75% of $5 million, or $3.75 million per year.
The University System of New Hampshire also assumes that the maximum amount of the tax credit will be utilized, resulting in an increase in revenue from donations of $5 million per year and an increase in expenditures for science and technology equipment and facilities of $5 million per year, beginning in FY 2002.