Bill Text: NH HB635 | 2025 | Regular Session | Introduced
Bill Title: Relative to taxing non-profit entities who settle illegal immigrants as for-profit entities.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2025-01-16 - Introduced (in recess of) 01/09/2025 and referred to Ways and Means House Journal 3 [HB635 Detail]
Download: New_Hampshire-2025-HB635-Introduced.html
HB 635-FN - AS INTRODUCED
2025 SESSION
25-0675
0709/
HOUSE BILL 635-FN
AN ACT relative to taxing non-profit entities who settle illegal immigrants as for-profit entities.
SPONSORS: Rep. Corcoran, Hills. 28
COMMITTEE: Ways and Means
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ANALYSIS
This bill:
I. Allows taxing non-profit entities who settle illegal immigrants as for-profit entities.
II. Allows the department of revenue administration to award bounties to persons who report instances of non-profits settling illegal immigrants to the department.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
25-0675
07/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Five
AN ACT relative to taxing non-profit entities who settle illegal immigrants as for-profit entities.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Taxation; Business Enterprise Tax; Definitions. Amend RSA 77-E:1, III to read as follows:
III. "Business enterprise" means any profit or nonprofit enterprise or organization, whether corporation, partnership, limited liability company, proprietorship, association, trust, foundation, business trust, real estate trust or other form of organization engaged in or carrying on any business activity within this state, except such enterprises as are expressly made exempt from income taxation under section 501(c)(3) of the United States Internal Revenue Code to the extent such enterprise does not engage in any business activity constituting unrelated business activity as defined by section 513 of the United States Internal Revenue Code. Each business enterprise under this definition shall be subject to the tax imposed under RSA 77-E as a separate entity except that trusts and foundations treated as grantor trusts under section 671 of the United States Internal Revenue Code shall be included in the return of their owners, and such owners shall be subject to the tax thereon to the extent any such owners would be considered a business enterprise hereunder notwithstanding the existence of the trust or foundation. The use of consolidated returns as defined in the United States Internal Revenue Code or of combined reporting is not permitted. Notwithstanding any other provision of this paragraph, an enterprise shall not be characterized as a business enterprise and shall be excluded from taxation at the entity level if it is a qualified investment company as defined in RSA 77-E:1, XIV or if it is a qualified regenerative manufacturing company as defined in RSA 77-E:1, XIV-a. "Business enterprise" shall include any for-profit or nonprofit enterprise or organization, whether corporation, partnership, limited liability company, proprietorship, association, trust, foundation, business trust, real estate trust, or other form of organization engaged in, or attempting to engage in, settling or re-settling illegal immigrants, including such enterprises that are expressly made exempt from income taxation under section 501(c)(3) of the United States Internal Revenue Code.
(a) For the purposes of this paragraph, "settling" and "re-settling" shall include:
(1) Providing, or intending to provide, housing assistance, cash, vouchers, or other items of value to be used for housing, utilities, or other goods or services;
(2) Providing, or intending to provide, legal or procedural aid given to assist a person in achieving residency;
(3) Providing, or intending to provide, advice, assistance, or translation services used in applying for government benefits, transportation, or other goods or services.
(b) For the purposes of this paragraph, "illegal immigrant" means anyone who is known, or should be known, to be in the United States without legal right or permission, or in the United States without having entered through a legal port of entry, to achieve housing, services, residency, or family reunification.
2 New Paragraphs; Taxation; Business Enterprise Tax; Administration. Amend RSA 77-E:11 by inserting after paragraph IV the following new paragraphs:
V. The first person who reports business enterprises engaging in, or attempting to engage in, settling or resettling illegal immigrants to the department of revenue administration may be provided a bounty, at the sole discretion of the department, not to exceed 10 percent of the business enterprise tax, as provided in RSA 77-E:2, assessed against the business enterprise in the tax year of the report. A person shall be eligible for a bounty, at the discretion of the department, for each tax year a report is successfully filed.
VI. The commissioner of the department of revenue administration shall adopt rules, pursuant to RSA 541-A, governing the bounty program established in paragraph V.
3 Effective Date. This act shall take effect 60 days after its passage.
25-0675
1/7/25
HB 635-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to taxing non-profit entities who settle illegal immigrants as for-profit entities.
FISCAL IMPACT: This bill does not provide funding, nor does it authorize new positions.
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Estimated State Impact | ||||||
| FY 2025 | FY 2026 | FY 2027 | FY 2028 | ||
Revenue | $0 | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | ||
Revenue Fund(s) | General Fund and Education Trust Fund | |||||
Expenditures* | $0 | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | ||
Funding Source(s) | General Fund | |||||
Appropriations* | $0 | $0 | $0 | $0 | ||
Funding Source(s) | None | |||||
*Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill | ||||||
The Office of Legislative Budget Assistant is unable to provide a complete fiscal note for this bill, as introduced, as it is awaiting information from the Department of Health and Human Services. The Department was originally contacted on 12/31/24 for a fiscal note worksheet. When completed, a revised fiscal note will be forwarded to the House Clerk's Office
METHODOLOGY:
This bill applies the business enterprise tax to non-profit entities who settle illegal immigrants and provides for a bounty to persons reporting instances of non-profits settling illegal immigrants to the Department of Revenue Administration.
The Department of Revenue Administration states it is not able to determine the fiscal impact of this bill on business enterprise tax revenue as it does not have information on the number of corporations with a 501(c)(3) designation that engage in settling or re-settling of illegal immigrants. The Department states the business enterprise tax revenue to the general fund and education trust fund would increase by an indeterminable amount to the extent the proposed expansion of the business enterprise tax base generates taxable income.
The Department has no information to estimate the fiscal impact of the awards from the bounty program. It is assumed any payments for the bounty would come from the general fund.
The Department would need to update all forms and rules related to the changes in this bill, however the Department does not anticipate any additional costs that cannot be absorbed the Department's operating budget.
The Department does note this bill may result in an impermissible classification of taxpayers and recommends the proposed bill be reviewed by a constitutional lawyer or the Department of Justice.
AGENCIES CONTACTED:
Department of Revenue Administration and Department of Health and Human Services
