Bill Text: NH HB668 | 2015 | Regular Session | Introduced
Bill Title: Relative to expense deductions under the business profits tax.
Spectrum: Partisan Bill (Republican 5-0)
Status: (Introduced - Dead) 2015-11-12 - Committee Report: Inexpedient to Legislate for Jan 6 (Vote 19-0; Consent Calendar); House Calendar 67, PG. 12 [HB668 Detail]
Download: New_Hampshire-2015-HB668-Introduced.html
HB 668-FN - AS INTRODUCED
2015 SESSION
15-0761
09/03
HOUSE BILL 668-FN
AN ACT relative to expense deductions under the business profits tax.
SPONSORS: Rep. Sanborn, Hills 41; Rep. Edelblut, Hills 38; Rep. Abrami, Rock 19; Rep. Hill, Merr 3; Rep. Azarian, Rock 8
This bill allows a business organization to calculate expense deductions as defined by Internal Revenue Code section 179, but not to exceed $100,000 per calendar year under the business profits tax.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
15-0761
09/03
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Fifteen
AN ACT relative to expense deductions under the business profits tax.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Business Profits Tax; Expense Deductions. Amend RSA 77-A:3-a to read as follows:
77-A:3-a Expense Deductions. Notwithstanding the definition of Internal Revenue Code in RSA 77-A:1, XX, in determining gross business profits before net operating loss and special deductions, a business organization shall calculate expense deductions [not to exceed $25,000] as permitted under Internal Revenue Code section 179 using the version of the United States Internal Revenue Code in effect as of January 1, 2012, but not to exceed $100,000 per calendar year.
2 Applicability. This act shall apply for tax periods beginning January 1, 2015.
3 Effective Date. This act shall take effect upon its passage.
LBAO
15-0761
Revised 01/29/15
HB 668-FN FISCAL NOTE
AN ACT relative to expense deductions under the business profits tax.
FISCAL IMPACT:
The Department of Revenue Administration states this bill, as introduced, will decrease state general and education trust fund revenue by an indeterminable amount in FY 2016 and each year thereafter. There will be no fiscal impact on state, county, and local expenditures, or county and local revenue.
METHODOLOGY:
The Department of Revenue Administration (DRA) states this bill seeks to increase the Internal Revenue Code (IRC) Section 179 expense deduction allowed under NH’s business tax from $25,000 to $100,000. This bill would take effect upon passage and would apply to taxable periods beginning January 1, 2015. The Department used all business taxpayer records that have been filed for Tax Year 2013 as of January 26, 2015 to determine the impact of the proposed legislation. The amount of each taxpayer’s IRC Section 179 expense was analyzed to identify who had between $25,000 (the current deduction cap) and $100,000 (the proposed deduction cap). Each taxpayer’s amount was multiplied by their apportionment percentage and then multiplied by the tax rate of 8.5% to calculate the fiscal impact. The Department states had the proposed legislation been in place for Tax Year 2013, there would have been a reduction in revenue of at least $4,722,522 (rounded to $4,723,000). The $4,723,000 reduction in revenue could be even higher once all Tax Year 2013 returns have been filed, and the impact of this law change analyzed for those taxpayers as well. Assuming all facts and circumstances would be the same in FY 2016 as they were for the filing of the Tax Year 2013 returns, this $4,723,000 reduction is estimated as a reduction in revenue for FY 2016. One could expect similar losses in subsequent years.
