Bill > HB1599

This bill removes the current 10-year limitation on net operating loss deductions (NOLDs) for Business Profits Tax (BPT) purposes, allowing businesses to carry forward their tax losses indefinitely. Specifically, the bill modifies existing state tax law to eliminate the restriction that previously limited businesses to carrying forward net operating losses only for 10 years following the loss year. Net operating losses are tax deductions that allow businesses to use financial losses from one year to offset profits in other years, which can help reduce their overall tax liability. By aligning with federal Internal Revenue Code provisions, the bill will enable businesses to potentially use accumulated losses from past years against future profits without a time restriction. The Department of Revenue Administration anticipates this change will result in an indeterminable decrease in state revenues, as the actual fiscal impact depends on whether businesses have sufficient future profits to utilize these carried-forward losses. The bill will take effect 60 days after its passage and is not expected to create new administrative costs for the state government.

Budget and Finance

https://gc.nh.gov/bill_Status/billinfo.aspx?id=2399&inflect=2