This bill proposes to amend the current law regarding net operating loss deductions (NOLDs) by removing the existing 10-year limitation on carrying forward these losses. Specifically, it modifies the introductory paragraph of RSA 77-A:4, XIII, to state that net operating losses may be carried forward indefinitely, aligning with federal provisions under Section 172 of the Internal Revenue Code. The current language that restricts the carryforward period to only 10 years is deleted, allowing businesses to utilize their losses in future profitable years without a time constraint.

The fiscal impact of this bill is projected to result in an indeterminable decrease in state revenues, as the Department of Revenue Administration (DRA) anticipates that the removal of the 10-year limit may lead to a reduction in Business Profits Tax (BPT) revenue. The DRA notes that while there are no new administrative costs associated with this change, the actual financial implications are difficult to quantify due to uncertainties surrounding future taxpayer liabilities and the timing of when businesses will be able to utilize their carried-forward losses. The bill is set to take effect 60 days after its passage.