HB 242-FN-A – AS INTRODUCED
2011 SESSION
09/01
HOUSE BILL 242-FN-A
AN ACT increasing the net operating loss carryover under the business profits tax.
SPONSORS: Rep. Seidel, Hills 20; Rep. Tucker, Rock 17; Rep. Cebrowski, Hills 18; Rep. Ohm, Hills 26; Rep. W. Smith, Rock 18; Rep. Twombly, Hills 25; Sen. Luther, Dist 12
This bill increases the net operating loss carryover under the business profits tax.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
11-0324
09/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eleven
AN ACT increasing the net operating loss carryover under the business profits tax.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Subparagraph; Business Taxes; Net Operating Loss Carryover. Amend RSA 77-A:4, XIII by inserting after subparagraph (d) the following new subparagraph:
(e) On or after July 1, 2012, the amount of net operating loss generated in a tax year that may be carried forward may not exceed $10,000,000.
2 Effective Date. This act shall take effect July 1, 2012.
LBAO
11-0324
Revised 01/31/11
HB 242 FISCAL NOTE
AN ACT increasing the net operating loss carryover under the business profits tax.
FISCAL IMPACT:
The Department of Revenue Administration states this bill will decrease state revenue by an indeterminable amount in FY 2013 and each year thereafter. This bill would have no fiscal impact on state, county, and local expenditures, or county and local revenues.
METHODOLOGY:
The Department of Revenue Administration states this bill would increase the net operating loss (NOL) carryover under the business profits tax (BPT) from $1,000,000 to $10,000,000 on or after July 1, 2012. The Department is unable to project the loss of revenue due to this NOL expansion as the Department cannot predict a business’ future BPT losses, or when or how much a business’ profits will be in future years for which this deduction will apply. For tax returns filed in calendar year 2009, NOL’s were taken on 4,531 tax returns filed. For those returns, $162,541,000 in NOL after apportionment, was taken to offset taxable business profits. The net tax effect of those deductions was a $13,815,000 loss of revenue. The Department states the 2009 tax returns reflected less total NOL deductions because the economy reduced profits, and thus, the taxpayers did not have to avail themselves of their loss carryovers. The Department states it would not be unreasonable to assume that the proposed increase of the NOL deduction would have a substantial, but indeterminable, impact on BPT revenues for years to come.