Struck = removed from the bill ·
added = the amendment's new text.
HBSen. 155-FN - AS INTRODUCED SESSION 25-0504 07/05 HOUSE BILL 155-FN AN ACT reducing the rate of the business enterprise tax.
SPONSORS:Lang, Dist 2 April 29, 2026 2026-1754s 07/09 Floor Amendment to HB 155-FN Amend the title of the bill by replacing it with the following:
Rep.3 AN ACT relative to business enterprise tax returns and appropriating funds to the department of health and human services for licensed nursing facilities.
Sweeney,6 Rock.Amend the bill by replacing all after the enacting clause with the following:
25;8 1 Business Enterprise Tax;
Rep.Returns.
AlexanderAmend Jr.,RSA Hills.77-E:5, I to read as follows:
29;I.
Rep.Every business enterprise having gross business receipts in excess of [$250,000] $375,000 as defined by RSA 77-E:1, X, during the taxable period or the enterprise value tax base of which is greater than [$250,000] $375,000 shall, on or before the fifteenth day of the third month in the case of enterprises required to file a United States partnership tax return, the fifteenth day of the fifth month in the case of enterprises required to file a United States exempt organization return, and the fifteenth day of the fourth month in the case of all other business enterprises, following expiration of its taxable period, make a return to the commissioner.
Berry,For Hills.tax years beginning January 1, [2015] 2029, the commissioner shall biennially adjust these threshold amounts rounding to the nearest $1,000 based on the 2-year (24-month) percentage change in the Consumer Price Index for All Urban Consumers, Northeast Region as published by the Bureau of Labor Statistics, United States Department of Labor using the amount published for the month of June in the year prior to the start of the tax year.
44;All returns shall be signed by the business enterprise or by its authorized representative, subject to the pains and penalties of perjury and the penalties provided in RSA 21- J:39.
Rep.2 Appropriation;
Osborne,Department Rock.of Health and Human Services.
2The COMMITTEE:sum of $2,500,000 for the fiscal year ending June 30, 2026, which shall be nonlapsing, is hereby appropriated to the department of health and human services for the purpose of supporting nursing home Medicaid per diem rate stabilizationThe funds shall be drawn first from excess Medicaid enhancement tax revenues above the estimates contained in the operating budget and any other accounts for fiscal year 2026, and then, in the event that available Medicaid enhancement tax revenues are insufficient, from state general funds.
WaysThe anddepartment Meansis ─────────────────────────────────────────────────────────────────authorized ANALYSISto Thisaccept billand reducesexpend theany ratematching offederal thefunds businesswithout enterpriseprior taxapproval forof taxthe yearsfiscal endingcommittee. on or after December 31, 2026.
-The -governor -is -authorized -to -draw -a -warrant -for -the -general -fund -share, -if -any, -out -of -any -money -in -the -treasury -not -otherwise -appropriated. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Explanation:
MatterFloor addedAmendment to currentHB law155-FN appears- inPage bold2 italics.- 3 Effective Date.
MatterI. 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.
HBSection 155-FN1 - AS INTRODUCED 25-0504 07/05 STATE OF NEW HAMPSHIRE In the Year of Ourthis Lordact Twoshall Thousandtake Twentyeffect FiveJanuary AN1, ACT2027. reducing the rate of the business enterprise tax.
BeII. it Enacted by the Senate and House of Representatives in General Court convened:
1The Newremainder Paragraph;of this act shall take effect upon its passage.
BusinessFloor EnterpriseAmendment Tax;to HB 155-FN - Page 3 - 2026-1754s AMENDED ANALYSIS This bill:
RateI. Reduced.
AmendRaises RSAthe 77-E:2amount byof insertingincome afterneeded paragraphbefore IIbusinesses are required to file a business enterprise tax return with the followingdepartment newof paragraph:revenue administration.
III.II.
ForAppropriates allfunds taxableto periods ending on or after December 31, 2026, a tax is imposed at the ratedepartment of 0.50health percentand uponhuman theservices taxablefor enterprisecertain valuelicensed taxnursing basefacilities. 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