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AN ACT creating a business profits tax credit for certain donations made for science and technology equipment and facilities to the department of regional community-technical colleges or the university system of New Hampshire or any component institutions, authorizing the Berlin campus of the New Hampshire regional community-technical college system to upgrade and modernize its equipment and programs, and authorizing manufacturing technology training in the town of Littleton.

This bill creates a business profits tax credit for certain donations made for science and technology equipment and facilities to the department of regional community-technical colleges, or any of its component institutions, and the university system of New Hampshire, or any of its component institutions. The bill provides that $200,000 in contributions received in each of the fiscal years ending June 30, 2003 and June 30, 2004 shall be used to provide manufacturing technology training in the town of Littleton, and to upgrade and modernize the equipment and programs at the Berlin campus of the New Hampshire regional community-technical college system.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

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 postsecondary science and technology investment tax credits as computed in RSA 187-A:25-b and RSA 188-F:14-d.

2 New Subdivision; Department of Regional Community-Technical Colleges; Postsecondary Science and Technology Investment Tax Credit. Amend RSA 188-F by inserting after section 14-c the following new subdivision:

I. In this section, "contribution" or "contributions" mean cash donations made to the department of regional community-technical colleges 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. An investment tax credit equal to 75 percent of the contribution made during the contributor's tax year shall be allowed against taxes imposed by RSA 77-A or taxes imposed by RSA 77-E, individually or in combination, provided the total investment tax credit available under this section does not exceed $200,000 in any tax year. In any tax year where total investment tax credit available under this section exceeds $200,000, the credit shall be prorated among contributors.

III. Credits provided by this section applied against the liabilities imposed by RSA 77-E shall be deemed to be taxes paid for the purpose of RSA 77-A:5, X.

IV. The credit provided by this section shall be available to contributors on or after the date contributions for which credit is to be taken are actually received.

3 North Country Manufacturing Technology Center in Littleton. From contributions made under RSA 188-F:14-d, the sum of $200,000 for the fiscal year ending June 30, 2003, and the sum of $200,000 for the fiscal year ending June 30, 2004, shall be used for the purpose of upgrading and modernizing equipment and programs at the Berlin campus of the regional community-technical college system and to extend the delivery of manufacturing training to the Littleton area learning center.

The Department of Regional Community Technical Colleges indicates this bill will increase state restricted revenue and decrease state unrestricted general fund revenue by an indeterminable amount in FY 2003 and each year thereafter. There will be no fiscal impact on state, county, and local expenditures or county and local revenue.

The Department states this bill will increase donations to the Department for the purpose of acquiring equipment or constructing, renovating, repairing or maintaining any facility used for science and technology educational purposes. At the same time, contributors will receive a credit against the Business Profits Tax, the Insurance Premium Tax, and the Business Enterprise Tax, individually or in combination, equal to 75 percent of the donation. The credit will reduce general fund unrestricted revenue.

The Department states it is difficult to estimate the amount of donations they will receive under the terms of this bill. The Department assumes it will receive approximately $250,000 in FY 2003, $500,000 in FY 2004 and $750,000 in FY 2005. The credit generated by the donation revenue will be 75% or $187,500, $375,000 and $562,500, respectively.

The Department anticipates it will be able to leverage the donations received under the terms of this bill in order to generate additional grant revenue. The Department assumes an additional 20 to 30% of donations will be generated.