Bill > HB1597

This bill modifies the New Hampshire Business Profits Tax by increasing the expense deduction cap under Section 179 of the Internal Revenue Code from $500,000 to $2,500,000 for property placed in service on or after January 1, 2027. Section 179 is a tax provision that allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year, instead of capitalizing and deprecating the asset over multiple years. The bill aims to align the state's tax deduction limits with broader federal standards, potentially providing significant tax relief for businesses by allowing them to immediately expense a larger amount of capital investments. According to the fiscal note, the Department of Revenue Administration estimates this change could decrease state revenue by an indeterminable amount, with a potential maximum fiscal impact of around $8.3 million, though the actual impact may be mitigated by regular depreciation claims over time. The bill will take effect 60 days after its passage and would impact both the General Fund and Education Trust Fund revenue streams.

Budget and Finance

https://gc.nh.gov/bill_Status/billinfo.aspx?id=2389&inflect=2