Struck = removed from the bill ·
added = the amendment's new text.
HBSenate 155-FNFinance -May AS12, INTRODUCED2026 SESSION2026-1913s 25-0504 07/05 HOUSEAmendment BILLto HB 155-FN ANAmend ACT reducing the ratetitle of the businessbill enterpriseby tax.replacing it with the following:
SPONSORS:3 AN ACT relative to business enterprise tax returns and relative to appropriations for nursing home payments.
Rep.6 Amend the bill by replacing all after section 1 with the following:
Sweeney,8 Rock.2 Department of Health and Human Services;
25;Division of Long Term Supports and Services;
Rep.Nursing Home Payments.
AlexanderAmend Jr.,2025, Hills.140, 05-95-48-482010-2152, Class Note 504 to read as follows:
29;504 The appropriation in Class 504 shall not lapse, except where noted below, shall not be used for any other purpose, and shall not be considered for budget reductions required pursuant to any section of this act or any other budget reduction, including executive orders, required of the department of health and human services.
Rep.To the extent that nursing home rates paid to providers in 504-Nursing Home Payments are less than the rates established by the department, prior to applying the budget adjustment factor, any balance remaining, less transfers made into class 504 [which shall lapse], shall be paid out to providers as a lump sum payment within 30 days of the year end, proportionally based on Medicaid class 504 payments made to such providers during the fiscal year.
Berry,All Hills.funds which are transferred into class 504 during the fiscal year ending June 30, 2026, that will not be expended, shall not lapse and are hereby appropriated to the department of health and human services for the state fiscal year ending June 30, 2027, for the purposes of supporting Class 504 Nursing Home Payments.
44;3 Effective Date.
Rep.I.
Osborne,Section Rock.1 of this act shall take effect January 1, 2027.
2II. COMMITTEE:
WaysThe andremainder Means ───────────────────────────────────────────────────────────────── ANALYSIS This bill reduces the rate of thethis businessact enterpriseshall taxtake foreffect taxJune years30, ending on or after December 31, 2026.
-Amendment -to -HB -155-FN - -Page -2 - -2026-1913s -AMENDED -ANALYSIS -This -bill: - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Explanation:
MatterI. added to current law appears in bold italics.
MatterRaises removedthe fromamount currentof lawincome appearsneeded [inbefore bracketsbusinesses andare struckthrough.]required Matterto whichfile isa eitherbusiness (a)enterprise alltax newreturn orwith (b)the repealeddepartment andof reenactedrevenue appearsadministration. in regular type.
HBII. 155-FN - AS INTRODUCED 25-0504 07/05 STATE OF NEW HAMPSHIRE In the Year of Our Lord Two Thousand Twenty Five AN ACT reducing the rate of the business enterprise tax.
BeMakes itall Enactedunexpended byfunds transferred into Class 504 during the Senatefiscal year ending June 30, 2026 nonlapsing and Houseappropriates such funds to the department of Representativeshealth inand Generalhuman Courtservices convened:for the purposes of supporting Class 504 nursing home payments.
1 New Paragraph;
Business Enterprise Tax;
Rate Reduced.
Amend RSA 77-E:2 by inserting after paragraph II the following new paragraph:
III.
For all taxable periods ending on or after December 31, 2026, a tax is imposed at the rate of 0.50 percent upon the taxable enterprise value tax base of every business enterprise.
2 Effective Date.
This act shall take effect July 1, 2025.
LBA 25-0504 12/11/24 HB 155-FN- FISCAL NOTE AS INTRODUCED AN ACT reducing the rate of the business enterprise tax.
FISCAL IMPACT:
This bill does not provide funding, nor does it authorize new positions.
Estimated State Impact FY 2025 FY 2026 FY 2027 FY 2028 Indeterminable Indeterminable Indeterminable Revenue $0 Decrease Decrease Decrease Revenue Fund(s) General Fund and Education Trust Fund Expenditures* $0 $0 $0 $0 Funding Source(s) None Appropriations* $0 $0 $0 $0 Funding Source(s) None *Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill METHODOLOGY:
This bill reduces the Business Enterprise Tax (BET) rate from 0.55% to 0.50% for taxable periods ending on or after December 31, 2026.
The Department of Revenue Administration states the fiscal impact is indeterminable as the Department is not able to predict future BET tax revenue.
Based on the following assumptions/information, the Department is able to estimate a possible fiscal impact:
· reducing the BET rate will also reduce the BET credit available to offset the Business Profits Tax (BPT), increasing BPT revenue.
However, the BPT increase will be less than the BET decrease as not all taxpayers have a BPT liability to be offset by the BET credit and not all taxpayer's BET liability exceeds the BPT credit.
In those situations the BET loss in revenue is not offset by an increased BPT liability.
· the starting point for calculating the fiscal impact on FY 2026 thru FY 2028 revenues is the Tax Year 2022 BET tax base of $42,000,000,000.
· based on a tax year revenue analysis of prior fiscal years, it was determined fiscal year tax revenue is comprised of 12 percent from the tax year 2 years ago, 69 percent is from the tax year 1 year ago and 19 percent from the current tax year (See table 1 below) The first table below provides the tax rates and splits.
The second table provides an estimated impact the rate changes will have on revenue.
Table 1.
Proposed Legislation Rates and Splits Fiscal Year Tax Year % Applicable to BET Rates Tax Year Fiscal Year 2026 Tax Year 2024 12% 0.55% Tax Year 2025 69% 0.55% Tax Year 2026 19% 0.50% Fiscal Year 2027 Tax Year 2025 12% 0.55% Tax Year 2026 69% 0.50% Tax Year 2027 19% 0.50% Fiscal Year 2028 Tax Year 2026 12% 0.50% and forward Tax Year 2027 69% 0.50% Tax Year 2028 19% 0.50% Table 2.
BET Rate Change Fiscal Impact - Static Analysis Estimated Cumulative Estimated Fiscal Impact TY 2022 Fiscal Impact Revenues Per Year Fiscal Revenues (Proposed with (Proposed Year with Current Legislation Proposed Legislation Law Compared to Legislation Compared to Current Law) Current Law) $244,600,000 $244,600,000 $0 $0 $244,600,000 $240,300,000 ($4,300,000) ($4,300,000) $244,600,000 $224,900,000 ($19,700,000) ($24,000,000) $244,600,000 $222,300,000 ($22,300,000) ($46,300,000) The fiscal impact of the proposed rate reduction as depicted in the above table may be overstated or understated for future years depending on whether actual revenue is more or less than the TY revenue.
The Department would need to update all necessary tax return forms and electronic management systems to reflect the change in the BET rate;
however, it is not anticipated this will result in any additional administrative costs that could not be absorbed in the Department's operating budget.
AGENCIES CONTACTED:
Department of Revenue Administration