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SPONSOR: |
MAES |
DATE TYPED: |
|
HB |
|
||
SHORT TITLE: |
Amend
Lab Partnership/Small Business Act |
SB |
12 |
||||
|
ANALYST: |
Neel |
|||||
REVENUE
Estimated Revenue |
Subsequent Years Impact |
Recurring or
Non-Rec |
Fund Affected |
|
FY03 |
FY04 |
|
|
|
|
(2,400.0) |
(2,400.0) |
Recurring |
General
Fund |
|
|
|
|
|
(Parenthesis ( ) Indicate Revenue Decreases)
Duplicates HB 21 Amend Lab Partnership/ Small
Business Act
LFC files
Responses
Received From:
Taxation
and Revenue Department (TRD)
No
Response
Department
of Economic Development
SUMMARY
Synopsis
of Bill
Senate Bill 12 amends
the Laboratory Partnership with Small Business Act (LPSBA), to increase the tax
credits the national laboratory can qualify for to $15.0 in rural areas and
$10.0 in non-rural areas. Previously the
tax credits were capped at $10.0 and $5.0 for rural and non-rural areas,
respectively. Additionally, the maximum
allowed under LPSBA is increased to $4.2 million from the current $1.8
million. SB 12 amends the definition of
qualified expenditures to include fringe benefits and employer payroll taxes in
the allowable calculation for administrative costs. Previously administrative costs were limited
to 49 percent of employee salaries and wages.
Lastly, SB 12 adds an
oversight and reporting section to the LPSBA, where national laboratories are
required to report quarterly to TRD on businesses where assistance is provided.
Annual reports are required to TRD, Department of Economic Development and the
appropriate legislative committee.
FISCAL IMPLICATIONS
TRD estimates $2.4
million impact to the General Fund for FY04.
In 2000 the estimated fiscal impact of LPSBA was $1.8 million. TRD does not note its fiscal impact
assumptions.
OTHER SUBSTANTIVE ISSUES
The LPSBA grants a tax
credit to qualified national laboratories to encourage them to provide technology
and expertise to small businesses. The
act is administered by TRD and allows the labs to claim a tax credit against
their state gross receipts taxes not to exceed $5.0 of qualified expenditures
for each small business assisted in a calendar year or $10.0 if the small business
is located in a rural area.
Other New Mexico Small
Business Assistance programs include:
ADMINISTRATIVE IMPLICATIONS
TRD notes that it has
no special expertise in the area of small business development assistance, or
the personnel to validate the quarterly or annual reports.
POSSIBLE QUESTIONS
1. When the original legislation’s
fiscal impact ($1.8 for FY02) is added to SB 12’s projected fiscal impact, the
total equals the allowable tax credit of $4.2 million. If the goal of this legislation is to enable
small business, maybe the tax credit cap should be increased?
2. What was the total state gross
receipts paid by Sandia in calendar year 2001?