HB 1460-FN-A – AS INTRODUCED
2006 SESSION
09/01
HOUSE BILL 1460-FN-A
AN ACT establishing a deduction against the business profits tax.
SPONSORS: Rep. Jasper, Hills 27
This bill establishes a deduction against the business profits tax in the amount of FICA taxes paid in lieu of a deduction allowed under federal law.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
06-2757
09/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Six
AN ACT establishing a deduction against the business profits tax.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Paragraph; Business Profits Tax. Amend RSA 77-A:4 by inserting after paragraph VII the following new paragraph:
VII-a. In the case of a business organization that elects a credit for certain FICA taxes paid in lieu of a deduction pursuant to Internal Revenue Code section 45-B, a deduction from gross business profits for the amount of the credit taken.
2 Effective Date. This act shall take effect July 1, 2006.
LBAO
06-2757
11/22/05
HB 1460-FN-A - FISCAL NOTE
AN ACT establishing a deduction against the business profits tax.
FISCAL IMPACT:
The Department of Revenue Administration indicates this bill will decrease state unrestricted general fund revenue and state restricted education trust fund revenue by an indeterminable amount in FY 2007 and each year thereafter. There is no fiscal impact on state, county and local expenditures or county and local revenue.
METHODOLOGY:
The Department of Revenue Administration (DRA) states that this bill establishes a deduction against the business profits tax (BPT) in the amount of FICA taxes paid in lieu of a deduction allowed pursuant to Internal Revenue Code (IRC) section 45-B. DRA states that this information is filed with the Internal Revenue Service (IRS) on federal form 8846, but consolidated with 19 other available credits. It is not possible for DRA to separate the amount of FICA taxes paid in lieu of a deduction allowed pursuant to IRC 45-B from the other available credits in the data provided by the IRS to DRA. The DRA further states that since this is a credit to the business profits tax, both the general fund and education trust fund revenues would be impacted. The Department states that this tax change can be administered with minimal additional costs for computer system programming and changes to tax forms.