United States

New Hampshire: Budget Agreement Includes Business Tax Cuts

Sep 21, 2015
From KPMG TaxWatch

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After three months of debate, New Hampshire lawmakers and Governor Maggie Hassan were able to reach agreement on a budget. The budget compromise, which was incorporated into Senate Bill 9, includes certain business tax cuts. Specifically, effective for tax periods ending on or after December 31, 2016, the Business Profits Tax rate is reduced from 8.5 percent to 8.2 percent. For all tax periods ending on or after December 31, 2018, the Business Profits Tax rate will be further reduced to 7.9 percent.  However, the 7.9 percent rate reduction will not occur if general and education trust fund revenues for the biennium ending June 30, 2017 are less than the amount specified in the bill ($4,640,000,000).  In addition, the Business Enterprise Tax rate for tax periods ending on or after December 31, 2016 will be reduced from .75 percent of the enterprise value of the business to .72 percent. An additional rate reduction to .675 percent will occur for taxable periods ending on or after December 31, 2018 unless revenues do not meet the required amounts. Governor Hassan signed Senate Bill 9 on September 16.  Please stay tuned to TWIST for future legislative updates. 

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The following information is not intended to be "written advice concerning one or more federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230.

The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.