HB 155-FN - AS INTRODUCED
2025 SESSION
25-0504
07/05
HOUSE BILL155-FN
AN ACTreducing the rate of the business enterprise tax.
SPONSORS:Rep. Sweeney, Rock. 25; Rep. Alexander Jr., Hills. 29; Rep. Berry, Hills. 44; Rep. Osborne, Rock. 2
COMMITTEE:Ways and Means
-----------------------------------------------------------------
ANALYSIS
This bill reduces the rate of the business enterprise tax for tax years ending on or after December 31, 2026.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
25-0504
07/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Five
AN ACTreducing 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 ACTreducing 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
Revenue $0 Indeterminable Decrease Indeterminable Decrease Indeterminable 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
Estimated State Impact
FY 2025
FY 2026
FY 2027
FY 2028
Revenue
$0
Indeterminable Decrease
Indeterminable Decrease
Indeterminable 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:
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 Tax Year BET Rates
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 and forward Tax Year 2026 12% 0.50%
Tax Year 2027 69% 0.50%
Tax Year 2028 19% 0.50%
Fiscal Year
Tax Year
% Applicable to Tax Year
BET Rates
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 and forward
Tax Year 2026
12%
0.50%
Tax Year 2027
69%
0.50%
Tax Year 2028
19%
0.50%
Table 2. BET Rate Change Fiscal Impact - Static Analysis
Fiscal Year TY 2022 Revenues with Current Law Estimated Revenues with Proposed Legislation Estimated Fiscal Impact Per Year (Proposed Legislation Compared to Current Law) Cumulative Fiscal Impact (Proposed Legislation Compared to Current Law)
2025 $244,600,000 $244,600,000 $0 $0
2026 $244,600,000 $240,300,000 ($4,300,000) ($4,300,000)
2027 $244,600,000 $224,900,000 ($19,700,000) ($24,000,000)
2028 $244,600,000 $222,300,000 ($22,300,000) ($46,300,000)
Fiscal Year
TY 2022 Revenues with Current Law
Estimated Revenues with Proposed Legislation
Estimated Fiscal Impact Per Year (Proposed Legislation Compared to Current Law)
Cumulative Fiscal Impact (Proposed Legislation Compared to Current Law)
2025
$244,600,000
$244,600,000
$0
$0
2026
$244,600,000
$240,300,000
($4,300,000)
($4,300,000)
2027
$244,600,000
$224,900,000
($19,700,000)
($24,000,000)
2028
$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 2022 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