Bill > HB1668

This bill updates New Hampshire's Business Profits Tax (BPT) laws by transitioning from a static to a rolling conformity approach with the United States Internal Revenue Code (IRC). Starting January 1, 2027, the state will automatically adopt any amendments to the federal tax code, which means the legislature will need to actively review and potentially opt out of federal tax law changes. The bill specifically limits expense deductions under Section 179 to $500,000 for property placed in service on or after January 1, 2027. Additionally, the bill requires the Commissioner of Revenue Administration to file a biennial report with the finance committees of the Senate and House of Representatives, informing them about changes to the IRC, Treasury Regulations, and administrative rulings that could impact New Hampshire. The fiscal note suggests that these changes will likely result in an indeterminable decrease in revenue for the General Fund and Education Trust Fund, primarily due to potential changes in how certain types of income and expenses are treated under the new tax code provisions. The bill will take effect immediately upon passage, with specific provisions applying to taxable periods beginning on or after January 1, 2027.

Budget and Finance

https://gc.nh.gov/bill_Status/billinfo.aspx?id=2275&inflect=2