The proposed bill seeks to repeal the Business Profits Tax (BPT) and all associated references in current law, effective January 1, 2027. Key amendments include the deletion of references to the BPT in various sections of the Revised Statutes Annotated (RSA), such as RSA 6:12, RSA 21-J, and RSA 77-E. The bill removes the BPT from the list of taxes reported by the State Treasurer, eliminates its mention in financial disclosure forms, and modifies penalties for failure to file tax returns. Additionally, it clarifies definitions related to the Business Enterprise Tax, ensuring that any deductions associated with the BPT are no longer applicable. The fiscal impact is significant, with an estimated cumulative revenue loss of approximately $1.7 billion for the General Fund and Education Trust Fund from fiscal years 2027 to 2029.

Furthermore, the bill introduces provisions to promote regenerative manufacturing in New Hampshire by defining a "Qualified regenerative manufacturing company" and clarifying what constitutes an "active regenerative manufacturing business." It amends existing tax laws to remove references to the BPT in contexts such as business organizations and scholarship organizations, and specifies that economic revitalization zone tax credits will now apply against the Business Enterprise Tax. The legislation also allows business taxpayers to carry over 500% of their prior tax year’s liability as an overpayment for future tax years, although it is anticipated that BPT-only taxpayers will likely receive refunds due to the repeal. Overall, the bill aims to streamline tax regulations while fostering growth in the regenerative manufacturing sector.

Statutes affected:
Introduced: 6:12, 6:12-k, 6:8, 14-B:8, 15-A:5, 21-J:14, 21-J:31, 21-J:33-a, 21-J:46, 71-C:2, 71-C:4, 77-E:1, 77-E:3, 77-E:4, 77-G:5, 124-A:12, 162-N:7, 162-T:2, 277-B:17-a, 293-A:14, 293-A:15, 293-B:2, 304-C:174, 304-C:185
HB1546 text: 6:12, 6:12-k, 6:8, 14-B:8, 15-A:5, 21-J:14, 21-J:31, 21-J:33-a, 21-J:46, 71-C:2, 71-C:4, 77-E:1, 77-E:3, 77-E:4, 77-G:5, 124-A:12, 162-N:7, 162-T:2, 277-B:17-a, 293-A:14, 293-A:15, 293-B:2, 304-C:174, 304-C:185, 400-A:34-a