SB 75-FN - AS INTRODUCED
2017 SESSION
17-0227
09/10
SENATE BILL 75-FN
SPONSORS: Sen. Watters, Dist 4; Sen. McGilvray, Dist 16; Sen. D'Allesandro, Dist 20; Sen. Bradley, Dist 3; Sen. Fuller Clark, Dist 21; Sen. Gannon, Dist 23; Sen. Hennessey, Dist 5; Sen. Lasky, Dist 13; Sen. Soucy, Dist 18; Sen. Woodburn, Dist 1; Rep. Cornell, Hills. 18; Rep. Southworth, Straf. 20; Rep. Gile, Merr. 27; Rep. Grenier, Sull. 7
COMMITTEE: Ways and Means
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This bill establishes a tax credit against business profits taxes for donations to career and technical education centers.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
17-0227
09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seventeen
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Section; Regional Career and Technical Education Centers; Donations. Amend RSA 188-E by inserting after section 9 the following new section:
188-E:9-a Donations to Regional Career and Technical Education Center Programs.
I. For purposes of this section "state fiscal year" shall mean the year beginning July 1 and ending June 30.
II. A school district may accept a charitable donation of:
(a) Tangible personal property for a related use by an educational program offered by the regional CTE center.
(b) Up to 50 percent of the cost of apprenticeship and training programs offered by the regional CTE center, including the compensation of employees in direct supervision and training of students in a CTE center program.
(c) Money to be used by the school district for the local share of construction and renovation costs under RSA 188-E:3.
III. The school district shall report within 30 days the donor name and the value of each charitable donation under paragraph I to the department of education.
IV. A donor who makes a qualifying charitable contribution under paragraph I shall be allowed a credit against the business profits tax imposed under RSA 77-A as computed by the department of education in paragraph V.
V. On or before August 1 of each year, the department of education shall compute the amount of tax credits available from the donations made during the prior state fiscal year. The aggregate of tax credits issued by the department of education to all donors claiming the credit under this section shall not exceed $500,000 for any state fiscal year. Credits claimed which exceed the total allowed shall be granted in the donor's proportional share of the maximum aggregate credit amount. On or before October 1 of each year, the department of education shall report all credits issued to the department of revenue administration.
VI. On or before September 1 of each year, the department of education shall provide a donor with a written statement of the amount of tax credit available which may be used by a donor for purposes of the tax credit against business profits taxes provided in RSA 77-A:5, XVI, computed according to paragraph V.
VII. No later than January 1, 2016, the commissioner of the department of education shall adopt rules pursuant to RSA 541-A, relative to:
(a) The administration of the issuance of tax credits for qualifying charitable donations under this section.
(b) The design and content of the reports, forms, and statements required to be filed with, or issued by, the department of education under this section.
2 New Paragraph; Business Profits Tax; Credit for Donations to Regional Vocational Education Centers. Amend RSA 77-A:5 by inserting after paragraph XV the following new paragraph:
XVI. The tax credit computed under RSA 188-E:9-a for donations to regional career and technical education center programs, provided that the credit allowed for a taxpayer under this paragraph shall not exceed 25 percent of the tax due under this chapter for such taxpayer before any credits under RSA 77-A:5 are taken into account.
3 Applicability. The tax credit under RSA 77-A:5, XVI shall apply to taxable periods ending after December 31, 2017.
4 Effective Date. This act shall take effect January 1, 2018.
17-0227
1/14/17
SB 75-FN- FISCAL NOTE
AS INTRODUCED
FISCAL IMPACT: [ X ] State [ ] County [ X ] Local [ ] None
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| Estimated Increase / (Decrease) | |||
STATE: | FY 2018 | FY 2019 | FY 2020 | FY 2021 |
Appropriation | $0 | $0 | $0 | $0 |
Revenue | Indeterminable Decrease | Indeterminable Decrease | Indeterminable Decrease | Indeterminable Decrease |
Expenditures | $26,500 | $26,500 | $27,500 | $29,000 |
Funding Source: | [ X ] General [ X ] Education [ ] Highway [ ] Other | |||
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LOCAL: |
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Revenue | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase |
Expenditures | $0 | $0 | $0 | $0 |
METHODOLOGY:
This bill establishes a tax credit for donations to career and technical education centers that can be applied against the business profits tax with an aggregate allowable amount not to exceed $500,000 per fiscal year. The tax credit allowed against the business profits tax shall not exceed 25 percent of the tax due under RSA 77-A, before any credits under RSA 77-A:5 are taken into account. The Department of Education would be responsible for computing the amount of tax credits to be issued based on qualifying donations that are reported to the Department. The Department of Education estimates it will need to add a part-time (0.5 FTE) program specialist I position to administer the program. The Department estimates the position's costs (salary, benefits, and other expenses) to be $26,500 in FY 2018, $26,500 in FY 2019, $27,500 in FY 2020 and $29,000 in FY 2021. The Department states the increase in local revenue from charitable contributions cannot be determined.
The Department of Revenue Administration has no method to determine the total future value of approved donations to determine the impact on general and education trust fund revenue. The Department states the revenue impact in FY 2018 may be a minimal decrease in business estimate payments by some donors who anticipate tax credits from their donations during the first year of this bill, for taxable periods ending after December 31, 2017. For each fiscal year after FY 2018, the maximum revenue decrease would be no more than the allowed aggregate tax credits of $500,000. The Department states it will be able to absorb any costs related to making changes to forms, electronic filing systems, and rules.
AGENCIES CONTACTED:
Department of Revenue Administration and Department of Education