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:Rosenwald, Dist 13 Sen.
Rep.Lang, Dist 2 Sen.
Sweeney,Rochefort, Rock.Dist 1 April 13, 2026 2026-1482s 07/05 Amendment to HB 155-FN Amend the title of the bill by replacing it with the following:
25;3 AN ACT reducing the rate of the business enterprise tax and appropriating funds to the department of health and human services for licensed nursing facilities.
Rep.6 Amend the bill by replacing all after section 1 with the following:
Alexander8 Jr.,2 Hills.Appropriation;
29;Department of Health and Human Services.
Rep.The 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 awarding a one-time payment to licensed nursing facilities serving individuals covered by Medicaid that received, on January 1, 2026, a new daily reimbursement rate below 95 percent of what they had received on July 1, 2025, as calculated by the department of health and human services.
Berry,The Hills.funds shall be drawn first from NAPPROVEDss 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.
44;The department of health and human services shall have sole discretion over distribution of the funds, and is authorized to accept and expend any matching federal funds without prior approval of the fiscal committee.
Rep.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.
Osborne,3 Rock.Effective Date.
2I. COMMITTEE:
WaysSection and1 Means ───────────────────────────────────────────────────────────────── ANALYSIS This bill reduces the rate of thethis businessact enterpriseshall taxtake foreffect taxJuly years1, ending2027. on or after December 31, 2026.
-II. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Explanation:
MatterThe addedremainder toof currentthis lawact appearsshall intake boldeffect italics.upon its passage.
MatterAmendment removedto fromHB current155-FN law- appearsPage [in2 brackets- and2026-1482s struckthrough.]AMENDED MatterANALYSIS whichThis isbill eitherreduces (a)the allrate newof the business enterprise tax for tax years ending on or (b)after repealedcertain andlicensed reenactednursing appearsfacilities.funds into regularthe type.department of health and human services for NAPPROVED
HB 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.
Be it Enacted by the Senate and House of Representatives in General Court convened:
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