This bill proposes the repeal of the Business Enterprise Tax (BET) and all associated references within New Hampshire law, effective July 1, 2027. Key amendments include the deletion of references to RSA 77-E and related provisions throughout various sections of the New Hampshire Revised Statutes Annotated (RSA), such as RSA 6:12, RSA 21-I:99, and RSA 71-C:2. The bill also modifies penalties for failure to file tax returns and substantial understatement penalties, ensuring that the BET is no longer applicable. Additionally, it clarifies that contributions to scholarship organizations can only be credited against the Business Profits Tax (BPT) under RSA 77-A, explicitly removing the ability to credit against the now-repealed BET.

The fiscal implications of this repeal are significant, with projections indicating a potential loss of approximately $257.8 million in revenue for the General Fund and Education Trust Fund by FY 2029. The first tax year affected by the repeal is expected to be Tax Year 2028, with an estimated revenue drop of $29.9 million in the first year and up to $325.7 million by the end of FY 2025. The bill also allows business taxpayers to carry over 500% of their prior tax year's liability as an overpayment for future tax years, and it anticipates issuing refunds to BET-only taxpayers, potentially amounting to an additional $20.5 million during FY 2028 and FY 2029. The Department of Revenue Administration has indicated that the repeal will not incur significant additional administrative costs, aside from a one-time mail campaign to inform affected taxpayers.

Statutes affected:
Introduced: 6:12, 6:12-k, 21-I:99, 21-J:31, 21-J:33-a, 21-J:46, 71-C:2, 71-C:4, 77-A:5-b, 77-A:5-c, 77-A:7, 77-G:3, 162-L:10, 162-N:7, 277-B:17-a, 293-A:14, 293-A:15
HB1629 text: 6:12, 6:12-k, 21-I:99, 21-J:31, 21-J:33-a, 21-J:46, 71-C:2, 71-C:4, 77-A:5-b, 77-A:5-c, 77-A:7, 77-G:3, 162-L:10, 162-N:7, 277-B:17-a, 293-A:14, 293-A:15