HB 813-FN-A - AS INTRODUCED
2003 SESSION
09/01
HOUSE BILL 813-FN-A
AN ACT establishing a deduction from the business profits tax for investments made in New Hampshire companies.
This bill establishes a deduction from the business profits tax for investments made in New Hampshire companies.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03-0886
09/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Three
AN ACT establishing a deduction from the business profits tax for investments made in New Hampshire companies.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Paragraph; Business Profits Tax; Deduction. Amend RSA 77-A:4 by inserting after paragraph XVIII the following new paragraph:
XIX. A deduction of up to $250,000 for any investments made in New Hampshire companies with a minimum of 3 employees.
2 Effective Date. This act shall take effect July 1, 2003.
LBAO
03-0886
Revised 3/5/03
HB 813 FISCAL NOTE
AN ACT establishing a deduction from the business profits tax for investments made in New Hampshire companies.
FISCAL IMPACT:
The Department of Revenue Administration indicates this bill will decrease state unrestricted general fund revenue by an indeterminable amount in FY 2004 and each year thereafter. There is no fiscal impact on county and local revenue or state, county and local expenditures.
METHODOLOGY:
The Department of Revenue (DRA) states that this bill provides a $250,000 deduction from the Business Profits Tax for any investments made in New Hampshire companies with a minimum of 3 employees. The DRA indicates that this bill does not limit or define a qualifying "investment" expenditure or how many times the credit may be taken. For purposes of this fiscal note, DRA assumed that all investment related expenditures would qualify for the credit. Based on a survey of 2001 BPT filers, the DRA estimated that between $75 to $125 million is the potential loss due to this provision. DRA states that the wide range of this estimate is based on the use of average apportionment.