HB 210-FN - AS INTRODUCED

 

 

2021 SESSION

21-0382

10/04

 

HOUSE BILL 210-FN

 

AN ACT increasing exemptions under the interest and dividends tax and decreasing the total amount of research and development credits against business taxes.

 

SPONSORS: Rep. Lang, Belk. 4; Rep. Weyler, Rock. 13; Rep. R. Ober, Hills. 37; Sen. Reagan, Dist 17; Rep. Binford, Graf. 15; Rep. Hough, Belk. 3

 

COMMITTEE: Ways and Means

 

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ANALYSIS

 

This bill increases exemption amounts under the interest and dividends tax and decreases the annual total aggregate amount of the research and development tax credit against business taxes.

 

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

21-0382

10/04

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty One

 

AN ACT increasing exemptions under the interest and dividends tax and decreasing the total amount of research and development credits against business taxes.

 

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

 

1  Interest and Dividends; Who Taxable.  Amend RSA 77:3 to read as follows:

77:3  Who Taxable.

I.  Taxable income is that income received from interest and dividends during the tax year prior to the assessment date by:

(a)  Individuals who are inhabitants or residents of this state for any part of the taxable year whose gross interest and dividend income from all sources, including income from a qualified investment company pursuant to RSA 77:4, V, exceeds [$2,400] $3,500 during that taxable period.

(b)  Partnerships, limited liability companies, and associations, the beneficial interest in which is not represented by transferable shares, whose gross interest and dividend income from all sources exceeds [$2,400] $3,500 during the taxable year, but not including a qualified investment company as defined in RSA 77-A:1, XXI, or a trust comprising a part of an employee benefit plan, as defined in the Employee Retirement Income Security Act of 1974, section 3.

(c)  Executors deriving their appointment from a court of this state whose gross interest and dividend income from all sources exceeds [$2,400] $3,500 during the taxable year.

II.  No person shall be subject to tax under RSA 77 solely due to its holding an ownership interest in a qualified investment company as defined in RSA 77-A:1, XXI.

2  Individual Exemptions Increased.  Amend RSA 77:5 to read as follows:

77:5  Exemptions.  Each taxpayer shall have the following exemptions:

I.  Income of [$2,400] $3,500.

II.  An additional [$1,200] $1,750 if either or both taxpayers are 65 years of age or older on the last day of the tax year.

III.  An additional [$1,200] $1,750 if either or both taxpayers are blind.

IV.  An additional [$1,200] $1,750 if either or both taxpayers are disabled, unable to work, and have not yet reached their sixty-fifth birthday.

3  Business Profits Tax; Credits; Research and Development.  Amend RSA 77-A:5, XIII(a)(1) to read as follows:

(1)  The aggregate of tax credits issued by the commissioner to all taxpayers claiming the credit shall not exceed [$7,000,000] $2,000,000 for any fiscal year.

4  Applicability.  The amendments to RSA 77:3 and RSA 77:5 in sections 1 and 2 of this act shall apply to tax years ending on and after December 31, 2022.

5  Effective Date.

I.  Sections 1 and 2 of this act shall take effect January 1, 2022.

II.  The remainder of this act shall take effect July 1, 2021.

 

LBA

21-0382

12/10/20

 

HB 210-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT increasing exemptions under the interest and dividends tax and decreasing the total amount of research and development credits against business taxes.

 

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

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2021

FY 2022

FY 2023

FY 2024

   Appropriation

$0

$0

$0

$0

   Revenue

$0

Indeterminable

Indeterminable

Indeterminable

   Expenditures

$0

$0

$0

$0

Funding Source:

  [ X ] General                      [ X ] Education                      [    ] Highway                    [      ] Other