Bill Text: NH HB1572 | 2016 | Regular Session | Introduced
Bill Title: Establishing a broadband deployment tax credit incentive program against the business profits tax and the business enterprise tax.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2016-09-20 - Executive Session: 10/12/2016 10:00 Amendment Legislative Office Building 202 [HB1572 Detail]
Download: New_Hampshire-2016-HB1572-Introduced.html
HB 1572-FN - AS INTRODUCED
2016 SESSION
16-2681
09/10
HOUSE BILL 1572-FN
AN ACT establishing a broadband deployment tax credit incentive program against the business profits tax and the business enterprise tax.
SPONSORS: Rep. Townsend, Graf. 11; Rep. Ratzki, Merr. 1
COMMITTEE: Ways and Means
-----------------------------------------------------------------
ANALYSIS
This bill establishes a broadband deployment tax credit incentive program to be administered by the department of resources and economic development. The credit shall be available against the business profits tax or the business enterprise tax to broadband providers for investment in providing access to broadband service to residences and businesses in underserved areas.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
16-2681
09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Sixteen
AN ACT establishing a broadband deployment tax credit incentive program against the business profits tax and the business enterprise tax.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Paragraph; Business Profits Tax; Broadband Deployment Tax Credit. Amend RSA 77-A:5 by inserting after paragraph XV the following new paragraph:
XVI. The broadband deployment tax credit as computed under RSA 162-R.
2 New Section; Business Enterprise Tax; Broadband Deployment Tax Credit. Amend RSA 77-E by inserting after section 3-d the following new section:
77-E:3-e Broadband Deployment Tax Credit. The broadband deployment tax credit as computed in RSA 162-R shall be allowed against the tax due under this chapter.
3 New Chapter; Broadband Deployment Tax Credit Incentive Program. Amend RSA by inserting after chapter 162-Q the following new chapter:
CHAPTER 162-R
Broadband Deployment Tax Credit Incentive Program
162-R:1 Program Established. There is established a broadband deployment tax credit incentive program which allows a business organization which is a broadband provider to earn annual tax credits of up to 15 percent of an amount which equals the average of its tax liability under RSA 77-A or RSA 77-E for the prior 3 years. The credit shall be issued by the commissioner of resources and economic development to eligible taxpayers under RSA 162-R:2 and shall be applied against the business profits tax under RSA 77-A or the business enterprise tax under RSA 77-E. The aggregate of tax credits issued by the commissioner of resources and economic development to all taxpayers claiming the credit shall not exceed $2,000,000 for any calendar year.
162-R:2 Eligibility and Determination of Tax Credit.
I. No tax credits under this chapter shall be allowed to any taxpayer unless the taxpayer's project receives written certification in accordance with paragraph II from the commissioner of resources and economic development that:
(a) It will provide broadband access to residential addresses where no provider currently offers residential broadband service at a minimum of 25 Megabits per second (Mbps) download by 3 Mbps upload speeds or the Federal Communications Commission definition of broadband, whichever is greater.
(b) The broadband provider offers residential broadband service at a minimum of 1 Gigabit per second (G-bps) download speed at a cost for service no greater than that available in other areas of the state served by the broadband provider.
(c) The broadband provider certifies the total cost of the broadband deployment project. The portion of the project funded by the tax credit shall not be greater than 80 percent and the broadband provider shall invest a minimum of 20 percent or $750 per residence or business included in the project, whichever is greater.
(d) Tax credits shall not be pro-rated and cannot be carried forward. When available credits are consumed no further credits will be issued until the next applicable tax year and application for tax credits.
(e) Tax credits may not be used or combined for deployments that are funded by other federal, state, or local resources including but not limited to funding from the Connect America Fund (CAF).
II.(a) The commissioner of resources and economic development shall enter into and certify a written broadband deployment tax credit agreement with each taxpayer. The agreement shall contain such provisions as the commissioner of resources and economic development determines to be in the public interest, which shall include, but not be limited to:
(1) The eligibility criteria established by paragraph I.
(2) Certification that all addresses in the project area will be capable of receiving a minimum of one Gbps download speed.
(3) Certification that 100 percent of the earned tax credit and provider match shall be spent deploying broadband in the project area.
(4) The amount of the taxpayer’s investment in the project.
(5) The address range of the area of the project eligible for the credit.
(b) The agreement shall contain a determination of the final amount of the credit awarded and shall be provided to the commissioner of revenue administration and the taxpayer claiming the credit no later than March 10 of each year.
162-R:3 Rules. The commissioner of revenue administration shall adopt rules, under RSA 541-A, relative to documentation of the credits claimed under this chapter. The commissioner of resources and economic development shall adopt rules, under RSA 541-A, relative to the administration and implementation of this chapter.
162-R:4 Annual Report. The commissioner shall publish annually and make public a report including:
I. Each broadband deployment project's total cost and the provider's cost of investment in the project.
II. The amount of earned tax credit which was applied.
III. The number and location of residential and business addresses served by the broadband provider within the project area.
4 Applicability. This act shall apply for tax periods beginning on or and after July 1, 2016 and ending on or before June 30, 2022.
5 Repeal. The following are repealed:
I. RSA 77-A:5, XVI, relative to the broadband deployment tax credit.
II. RSA 77-E:3-e, relative to the broadband deployment tax credit.
III. RSA 162-R, relative to the broadband deployment tax credit incentive program.
I. Section 5 of this act shall take effect July 1, 2022.
II. The remainder of this act shall take effect July 1, 2016.
16-2681
11/30/15
HB 1572-FN- FISCAL NOTE
AN ACT establishing a broadband deployment tax credit incentive program against the business profits tax and the business enterprise tax.
FISCAL IMPACT:
The Department of Revenue Administration states this bill, as introduced, will decrease state general fund and education trust fund revenue by an indeterminable amount in FY 2018 and each year thereafter and increase state expenditures by an indeterminable amount in FY 2017 and each year thereafter. There is no fiscal impact on county and local revenue or expenditures.
METHODOLOGY:
The Department of Revenue Administration (DRA) states this bill creates a broadband deployment tax credit program administered by the Department of Resources and Economic Development (DRED). The maximum tax credit allowed in a calendar year from all taxpayers claiming the credit would be $2,000,000 with this credit being applied to either the business profits tax or the business enterprise tax. A business organization that qualifies for a credit under this bill will enter into a written broadband deployment tax credit agreement with DRED that shall be provided to DRA. The maximum decrease in the business profits and business enterprise tax revenues would be $2,000,000 beginning in FY 2018. The DRA would have increased expenses associated with drafting new rules, amending document forms, and updating IT systems associated with adding this new tax credit program.
The Department of Resources and Economic Development anticipates this new broadband deployment tax credit program will result in a modest number of applications. The Department anticipates the broadband director position at DRED will be able to absorb the additional workload of administering the program, reviewing applications, attending meetings and responding to phone calls with no additional costs or detracting from other critical duties.
