2023 New Hampshire Revised Statutes › Title V - Taxation › Chapter 77-G - Education Tax Credit › Section 77-G:5 - Scholarship Organizations.

77-G:5 Scholarship Organizations. –
I. A scholarship organization shall:
(a) Provide scholarships from eligible contributions to eligible students to defray educational expenses.
(b) Not restrict or reserve scholarships for use at a single nonpublic school and not restrict or reserve a scholarship for a specific student or a specific person.
(c) Verify a student's eligibility to apply for and receive a scholarship through transcripts and attendance records.
(d) Not have an owner or operator who also owns or operates a nonpublic school that participates in the education tax credit program.
(e) Not have an owner or operator who in the last 7 years has filed for personal bankruptcy or corporate bankruptcy in a business organization or business enterprise of which he or she owned more than 20 percent.
(f) Not use more than 10 percent of eligible contributions used during the program year in which the contributions are collected, and for which scholarship receipts were issued for tax credit purposes, for administrative expenses. Administrative expenses shall be reasonable and necessary for the organization's management and distribution of eligible contributions pursuant to this chapter.
(g) In the first program year, there shall be no carry forward of unused eligible contributions. In each program year thereafter, contributions may be carried forward to the following program year.
(h) Maintain separate accounts for scholarship funds, non-tax credit donations, and operating funds.
(i)(1) Not award a scholarship to any lineal descendent or equivalent step-person of any officer, director, or employee of any scholarship organization; and
[Paragraph I(i)(2) effective until January 1, 2025; see also paragraph I(i)(2) set out below.]
(2) Not knowingly award a scholarship to any lineal descendant or equivalent step-person of any proprietor, partner, or member of any business organization, business enterprise, or individual making a contribution to a scholarship organization and claiming a credit against the business profits tax, business enterprise tax, or tax on interest and dividends, nor any lineal descendant or equivalent step-person of any officer, director, or owner of more than a 5 percent interest in any business organization, business enterprise, or individual making a contribution to a scholarship organization and claiming a credit against the business profits tax, business enterprise tax, or tax on interest and dividends, nor any employee who is among the highest-paid 20 percent of paid employees in any business organization, business enterprise, or individual making a contribution to a scholarship organization and claiming a credit against the business profits tax, business enterprise tax, or tax on interest and dividends.
[Paragraph I(i)(2) effective January 1, 2025; see also paragraph I(i)(2) set out above.]
(2) Not knowingly award a scholarship to any lineal descendant or equivalent step-person of any proprietor, partner, or member of any business organization, business enterprise, or individual making a contribution to a scholarship organization and claiming a credit against the business profits tax or business enterprise tax, nor any lineal descendant or equivalent step-person of any officer, director, or owner of more than a 5 percent interest in any business organization, business enterprise, or individual making a contribution to a scholarship organization and claiming a credit against the business profits tax or business enterprise tax, nor any employee who is among the highest-paid 20 percent of paid employees in any business organization, business enterprise, or individual making a contribution to a scholarship organization and claiming a credit against the business profits tax or business enterprise tax.
(j) Provide to each school district which receives a stabilization grant pursuant to RSA 77-G:8 a copy of the aggregated results of the scholarship impact survey, including total number of students who received scholarships from that school district under RSA 77-G:1, VIII(a)(1).
II. (a) An organization seeking approval as a scholarship organization under this chapter shall submit an application to the department of revenue administration each program year no later than June 15. The department of revenue administration shall approve or deny the application within 30 days of receipt of the application or the scholarship organization report, whichever is later. The department shall deny any application that fails to meet the statutory requirements and shall notify the scholarship organization of the reasons for denial.
(b) A business organization, business enterprise, or individual shall submit an education tax credit application to the department of revenue administration no later than May 31 of each program year. Applications received after May 31 shall be processed for the following program year and approved within 30 days of receipt or within 30 days of the department of revenue administration's approval of the scholarship organization, whichever comes later. Applications shall be processed on a first come-first served basis, up to the aggregate tax credit amount allowed under RSA 77-G:4. If multiple education tax credit applications are received on the same day, they shall be processed at random. No business organization, business enterprise, or individual shall be granted an education tax credit for more than 10 percent of the aggregate tax credit amount permitted in RSA 77-G:4. The department of revenue administration may approve only a portion of a request if required to prevent exceeding the aggregate tax credit amount allowed under RSA 77-G:4. The approval shall include the amount allowed and the date of approval.
(c) Once an education tax credit application is approved, the business organization, business enterprise, or individual shall donate no later than 60 days after the date of approval, and no later than June 30 of the program year during which its application was approved or the request shall expire. Donations may be made to multiple scholarship organizations provided the total amount donated by the business organization, business enterprise, or individual does not exceed the amount approved.
(d) Upon receiving a donation, the scholarship organization shall send a scholarship receipt to the department of revenue administration and to the business organization, business enterprise, or individual within 15 days. The department of revenue administration shall notify the scholarship organization and the business organization, business enterprise, or individual within 15 days if the donations made exceed the amount approved. If a business organization, business enterprise, or individual fails to donate the total amount approved within the time permitted, the department of revenue administration may grant credit requests in the order specified in subparagraph (b).
(e) Notwithstanding RSA 193-E:5, within 30 days following the end of each program year, a scholarship organization shall furnish the unique pupil identifier and date of birth for each student eligible pursuant to RSA 77-G:1, VIII(a)(1) and (2) who received a scholarship, and the subparagraph under which he or she was eligible, to the department of education. The department of education shall notify the scholarship organization within 30 days of any students who are ineligible under RSA 77-G:1, VIII(a)(1).
(f) [Repealed.]
(g) Within 30 days following the end of each program year, the scholarship organization shall submit a scholarship organization report to the department of revenue administration for the most recently completed program year. The scholarship organization shall also include a scholarship organization application if it intends to issue scholarships under this chapter in the next program year. The department of revenue administration shall review the scholarship organization report and the scholarship receipts to ensure that the administrative expenses requirement set forth in subparagraph I(f) is not exceeded, that the number of scholarships issued under RSA 77-G:1, VIII(a)(1) and (2) meets the requirements of this chapter, and the average scholarship size does not exceed the amount allowed. If any of these requirements are not met, the department of revenue administration may deny a scholarship organization application for subsequent program years and shall notify the scholarship organization of the reasons for denial.
(h) A business organization, business enterprise, or individual may file for the tax credit after receiving the scholarship receipt, and may file a tax credit request for the subsequent program year up to the amount donated in the current program year.
(i) The provisions of this chapter regarding nonpublic schools and their relation to scholarship organizations shall apply only to nonpublic schools that choose to accept scholarship students.
Source.
2012, 287:4, eff. June 27, 2012. 2016, 8:10, eff. Mar. 16, 2016. 2017, 63:4, 5, 9, II, eff. Aug. 1, 2017. 2018, 341:6, 7, eff. July 1, 2018; 357:10, eff. July 1, 2018; 357:13, 18, 19, eff. July 1, 2018 at 12:01 a.m. 2021, 91:97, eff. Jan. 1, 2025.