Thursday, the New Hampshire Senate unanimously approved a bill that increases the state’s research and development tax credit funding from $1 million to $2 million beginning this year. Last year, 111 qualifying businesses shared that $1 million – so that the 58 businesses who qualified for the maximum credit of $50,000 received $12,065 each.
Who qualifies?
Flickr/CIMMYT
In New Hampshire, R&D tax credits are available to businesses that pay wages to employees whose research is “technological in nature,” and “intended to be useful in the development of a new or improved business component.” The federal government also offers businesses an R&D tax credit, which can also be used against supplies and services, not just wages.
One big misnomer, national tax expert Dean Zerbe says, is that only large manufacturing firms can qualify. He says small and medium sized businesses – doing anything from architecture to software development to medical device technology – can qualify for both federal and state R&D tax credits. Zerbe is a former senior council to the U.S. Senate Finance Committee, and currently works for alliantgroup, a business tax services company.
Business leaders gathered at the Grappone Center in Concord Friday to meet with Republican Senator Kelly Ayotte, who says many came to her with their concerns about the federal fiscal policy.
“Most of all I think they want they want some certainty about the tax and regulatory climate,” Ayotte says.
Earlier in the day, Ayotte met with community bankers to discuss the impact of the Dodd Frank Act regulations on their businesses.
Ayotte sits on the Senate’s committees on the budget, commerce, and Homeland Security & Governmental Affairs.
The event was sponsored by the Business and Industry Association.
It’s that time of year when taxes begin to be on peoples’ minds. But the IRS is worried not enough people know about the Earned Income Tax Credit – which is the federal government’s biggest anti-poverty program. So – they’ve pronounced today Earned Income Tax Credit Awareness Day.
Last year, more than 77,000 needy Granite Staters received a total of $140 million dollars through the EITC. But those numbers could be higher. Nationally, the IRS estimates that one in five people who are eligible don’t know how to receive their money. And the sums are nothing to laugh at – some families can receive as much as $5,800.
One problem, says New Hampshire Attorney Barbara Stewart, is that people make mistakes while filing an income tax return – even if they go to a professional. Another problem is that “people don’t realize it’s out there,” Stewart says. If your income is below a certain threshold, you aren’t required to file a tax return. So, many low income people “never get to the point of seeing a form or a question that would make them think Oh maybe I do qualify for this.”
If you earn under $50,000 you can get free in-person tax preparation assistance from VITA or the AARP. Call 211 or go to 211nh.org for more information.
The New Hampshire Bar Association’s Low-Income Taxpayer Project provides assistance for many tax problems at no charge: (603) 228 6028 (between 8:30am and 5:00pm).
Governor Hassan has issued an executive order creating a panel of experts to advise her on state revenue projections. Once a budget is adopted by the legislature, the panel will meet regularly to review revenue estimates, and share those estimates with legislators.
Earlier this month, the state’s Legislative Budget Assistant Jeffry Pattison told us why predicting revenues for a biennial budget can be difficult.
Considering you’re going to be sitting here in January, 2013 projecting what kind of money is going to be coming in in April, May and June of 2015… you have wars, you have a fiscal cliff, you have all these potential things that could happen. You can’t account for those extenuating circumstances.
Nevertheless, New Hampshire ended 2012 within one half of one percent of the state’s projected budget.
The Governor’s Consensus Revenue Estimating Panel will be chaired by Gerard Murphy, the Governor’s Budget Director.
The members are: Linda Hodgdon, Commissioner of the Department of Administrative Services (or designee) Kevin Clougherty, Commissioner of the Department of Revenue Administration (or designee) Richard Samuels, a director of the New Hampshire Business and Industry Association and an attorney at McLane, Graf, Raulerson and Middleton Dennis Delay, economist with the New Hampshire Center for Public Policy Jeff McLynch, New Hampshire Fiscal Policy Institute Ross Gittell, economist and Chancellor of the Community College System of New Hampshire
The Senate Ways and Means committee has unanimously agreed to send to the floor a bill that doubles New Hampshire’s research and development tax credit – a priority of both the Business and Industry Association, as well as Senate Democrats.
Senator Odell, who is chairman of the Ways and Means committee, says he introduced a similar bill last year, but it failed despite unanimous support in the Senate and strong support in the house. Odell says the House added a non-germaine amendment in committee of conference. “The goal was to force the Senate to accept an amendment that dealt with abortion,” Odell says, “and the Senate would not do that. That’s just not our style.”
The bill, if passed, will increase the total amount of available funds from $1 million to $2 million, while maintaining the current maximum of $50,000 per credit. The Senate will debate the bill on January 31st.
The LGC insures municipalities, school districts, and agencies, handling hundreds of millions of taxpayer dollars. The state argued that for years, the LGC over-charged for health insurance in order to illegally bulk-up its assets and prop-up its failing worker’s compensation program . Last summer, a hearing officer sided with the state, and ordered the LGC to return more than $52 million to members. The LGC is appealing that order to the New Hampshire Supreme Court. Continue Reading →
How much has the LGC promised to return to your community? StateImpact crunched data from the Local Government Center and created a searchable table to help you find out. Continue reading →
The city of Franklin will hire a lobbyist this legislative session to follow the Northern Pass project.
The town stands to gain about $4.2 million dollars annually in property taxes, if the Northern Pass project goes through. The taxes would be paid by PSNH on a converter station, which will be built in Franklin.
Elizabeth Dragon, the city manager of Franklin, says the city is looking for someone to follow relevant legislation and alert Franklin officials when necessary, “so that if there is a bill that requires us to travel to Concord to testify, we can do that.”
Dragon says the revenue from property taxes paid on the converter station would allow them to better fund their schools and maintain their roads. She says infrastructure funds have been so low, the town has had to convert paved roads back to dirt to save money.
While beer sales have been down, nationally, since the great recession, the craft beer industry has been going strong – growing 15 percent in 2011, according to the American Brewers’ Association.
The newest kid on the block in craft beer is the “nanobrewery” – a very small scale commercial brewery that produces fewer than 2,000 barrels a year. To put that in context, the Brewers’ Association defines a microbrewery as producing fewer than 15,000 barrels a year, and a large brewery as exceeding 6 million*. Hess Brewing in California keeps a list of nanobreweries and estimates there are about 93 in operation nationally – although that list is probably not comprehensive.
A customer makes an order at Throwback’s tap room.
A customer chats with Throwback co-owner Nicole Carrier at the Throwback tap room.
The Throwback Brewery is located in a small warehouse in North Hampton, NH.
Assistant brewer Chris Naro uses the keg cleaning system jerry-rigged by Throwback owner and former and engineer, Annette Lee.
Assistant Brewer Chris Naro worked in finance before coming to Throwback full time.
A set of stairs lead up to Annette Lee’s office above Throwback Brewery.
Throwback co-owner Annette Lee works from an office above the warehouse.
Co-owner Nicole Carrier pours beer for customers.
New Hampshire is the only state in the nation to recognize and codify nanobreweries as separate from large-scale beverage manufacturers. In doing so, the state lowered certain Prohibition-era liquor limitations that make it hard for the little guys to get a license, open a tap room and get brewing – including a requirement that a brewery sell hot food if they wish to serve beer.
New Hampshire is beginning the calendar year with a “$25 million dollar problem,” Legislative Budget Assistant Jeffry Pattison told legislative budget writers at a fiscal orientation on Monday. Pattison says that in context, that’s a “$25 million dollar deficit on a $5.2 billion dollar budget,” which, he says, he thinks the state can manage.
Additionally, Pattison says, the deficit could change as pending budget uncertainties are resolved — such as $36.8 million in disputed Medical Enhancement Taxes which may yet be paid by certain hospitals, and other pending lawsuits.
Meanwhile, an expert on the fiscal cliff told budget writers that spending cuts at the federal level could cost New Hampshire businesses and governments as much as $32 million this fiscal year.
The briefings on fiscal year 2013 year will help prepare lawmakers as they set out to craft the biennial budget for fiscal years 2014-2015.
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