The proposed bill, HB 502-FN, introduces significant reforms to New Hampshire's tax structure, particularly focusing on the business profits tax and the state education property tax. A key change is the repeal of the water's edge combined group provisions, which previously allowed multinational corporations to separate their U.S. and foreign operations for tax purposes. The bill reinstates a complete corporate reporting method, treating parent corporations and their subsidiaries as a single taxpayer to prevent profit shifting to foreign tax havens. Additionally, the bill mandates that revenues from the state education property tax be deposited into the education trust fund, revises the calculation procedures for state education grants, and modifies the criteria for the low and moderate income homeowners property tax relief program. Notably, it establishes a committee to study this program further and ensures that a portion of funds is allocated to cover municipal costs before being directed to the education trust fund.

Furthermore, the bill enhances taxpayer awareness of available tax relief programs by requiring tax bills to include a clear statement about the low and moderate income homeowners property tax relief program, with specific details on how to apply. It modifies eligibility criteria by increasing income thresholds for single and married individuals and caps the maximum tax relief at $1,100 per fiscal year. The bill also revises definitions related to business taxation to align with the Internal Revenue Code and introduces annual adjustments for inflation to income thresholds and relief amounts. Additionally, it establishes a cap of $30 million on total tax relief checks issued in a fiscal year, with provisions for proportional reductions if claims exceed this limit. Overall, the bill aims to enhance property tax relief for low and moderate-income homeowners while reforming corporate taxation practices to ensure fairness and transparency.

Statutes affected:
Introduced: 76:8, 76:11-a, 77-A:1, 198:39, 198:57