This bill, HB 1536-FN, aims to increase the amount of the expense deduction allowed against the business profits tax in New Hampshire. Currently, the deduction is limited to $500,000 for property placed in service on or after January 1, 2018. This bill proposes to increase the deduction to $1,000,000 for property placed in service on or after January 1, 2025. The bill also specifies that it will apply to all taxable periods ending on or after December 31, 2024. The Department of Revenue Administration states that the fiscal impact of this bill is indeterminable, but it is expected to decrease revenue for the General Fund and Education Trust Fund. The bill includes 2018 2025 as the new date for property placed in service for the increased deduction. It also includes $500,000 $1,000,000 as the new limit for the expense deduction. The bill will take effect 60 days after its passage. The Department of Revenue Administration estimates that the maximum fiscal impact of this bill could be $4,700,000, but notes that the actual impact is indeterminable due to various factors such as deductions and credits taken by taxpayers. The Department would need to update tax return forms and electronic management systems to reflect the changes in the bill, but does not anticipate any additional administrative costs.

Statutes affected:
Introduced: 77-A:3-a