SB663: establishing a credit against business taxes for employer payments in the graduate retention incentive partnership program.

SB 663-FN - AS INTRODUCED

2020 SESSION

20-3080

10/03

SENATE BILL 663-FN

AN ACT establishing a credit against business taxes for employer payments in the graduate retention incentive partnership program.

SPONSORS: Sen. Kahn, Dist 10; Sen. Watters, Dist 4; Sen. Hennessey, Dist 5; Sen. Feltes, Dist 15; Sen. Soucy, Dist 18; Rep. Doherty, Merr. 20; Rep. Tanner, Sull. 9

COMMITTEE: Ways and Means

ANALYSIS

This bill provides for a credit against business taxes for participating employers in the graduate retention incentive partnership (GRIP) program and reduces the amount of credit available under the education tax credit.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

20-3080

10/03

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twenty

AN ACT establishing a credit against business taxes for employer payments in the graduate retention incentive partnership program.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 New Section; Graduate Retension Incentive Partnership (GRIP); Tax Credit. Amend RSA 12-O by inserting after section 49 the following new section:

12-O:49-a NH GRIP Payments; Tax Credit Against Business Taxes. For each payment made to a participating employee under an agreement with a participating employer, the participating employer may claim a credit equal to 25 percent of the payment against the business profits tax due pursuant to RSA 77-A or against the business enterprise tax due pursuant to RSA 77-E provided the total credit granted shall not exceed the maximum NH GRIP tax credit allowed. Credits provided under this chapter shall not be deemed taxes paid for the purposes of RSA 77-A:5, X. A participating employer shall provide proof as determined in rules adopted by the commissioner of the department of business and economic affairs of the payments made under a participating employer agreement. The commissioner shall certify the credits granted under to this section to the department of revenue administration. The aggregate of tax credits issued by the commissioner of the department of revenue administration to all taxpayers claiming the NH GRIP credit shall not exceed $3,000,000 a year.

2 Education Tax Credit; Total Reduced. Amend RSA 77-G:4, I to read as follows:

I. The aggregate of tax credits issued by the commissioner of the department of revenue administration to all taxpayers claiming the credit shall not exceed [$5,100,000] $2,100,000 for a program year.

3 New Paragraph; Business Profits Tax; GRIP Tax Credit. Amend RSA 77-A:5 by inserting after paragraph XVI the following new paragraph:

XVII. The NH GRIP tax credit as computed in RSA 12-O:49-a.

4 New Section; Business Enterprise Tax; NH GRIP Tax Credit. Amend RSA 77-E by inserting after section 3-d the following new section:

77-E:3-e NH GRIP Tax Credit. The NH GRIP tax credit, as computed in RSA 12-O:49-a, shall be allowed against the tax due under this chapter.

5 Applicability. The tax credits authorized in this act shall apply to tax years beginning on and after January 1, 2021.

6 Effective Date. This act shall take effect July 1, 2020.

LBAO

20-3080

12/18/19

SB 663-FN- FISCAL NOTE

AS INTRODUCED

AN ACT establishing a credit against business taxes for employer payments in the graduate retention incentive partnership program.

FISCAL IMPACT: [ ] State [ ] County [ ] Local [ X ] None

METHODOLOGY:

This bill establishes a tax credit against the Business Enterprise Tax or Business Profits Tax for the NH Graduate Retention Incentive Partnership (NH GRIP) Program (RSA 12-O:49-a). The total NH GRIP credit shall not exceed $3,000,000 in a year from all taxpayers claiming the credit. This bill also reduces the education tax credit (RSA 77-G:4,I) the amount of by $3,000,000 from $5,100,000 to $2,100,000. This bill will have no fiscal impact on Business Tax revenue as the maximum $3,000,000 NH GRIP tax credit is offset by the $3,000,000 reduction to the maximum aggregate amount for the education tax credit program.

The Department of Revenue Administration is able to implement the changes contained in this bill without additional expenditures.

AGENCIES CONTACTED:

Department of Revenue Administration