Bill > HB502

This bill revises several aspects of New Hampshire's tax and property tax relief systems, with a primary focus on changing corporate taxation and expanding homeowner property tax relief. The bill repeals the "water's edge" method of corporate taxation, which previously allowed multinational corporations to exclude foreign profits from state tax calculations, and returns to a "complete corporate reporting" approach that treats parent corporations and their subsidiaries as a single taxpayer. This change aims to prevent profit shifting and create a more equitable tax system for businesses. The bill also modifies the low and moderate income homeowners property tax relief program by increasing income thresholds for eligibility, adjusting calculation methods, and setting a maximum annual relief amount of $1,100. Additionally, the bill requires municipalities to send education property tax revenues to the Department of Revenue Administration for deposit in the education trust fund, with municipalities retaining 3% for administrative costs. A new legislative committee is established to study potential expansions of the property tax relief program, including exploring relief options for tenants and developing a statewide property tax deferral program. The changes to corporate taxation and property tax relief will take effect on January 1, 2026, with the study committee being established immediately upon the bill's passage.

Budget and Finance

https://gc.nh.gov/bill_status/legacy/bs2016/bill_status.aspx?lsr=0519&sy=2025&sortoption=&txtsessionyear=2025&txtbillnumber=HB502