Revision: Jan. 12, 2012, midnight
HB 242-FN-A – AS AMENDED BY THE HOUSE
11Jan2012… 2568h
2011 SESSION
09/01
HOUSE BILL 242-FN-A
AN ACT relative to 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 changes the effective date of the increased amount of net operating loss in a tax year that may be carried forward.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
11Jan2012… 2568h
11-0324
09/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eleven
AN ACT relative to 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 Net Operating Loss Carryover. Amend 2011, 224:363 to read as follows:
363 New Subparagraph; Business Profits Tax; Net Operating Loss Carryovers. Amend RSA 77-A:4, XIII by inserting after subparagraph (d) the following new subparagraph:
(e) On or after [July] January 1, 2013, 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 Change. Amend 2011, 224:413, V to read as follows:
V. Sections 19[,] and 221[, and 363] of this act shall take effect July 1, 2013.
3 New Paragraph; Effective Date Change. Amend 2011, 224:413 by inserting after paragraph XII the following new paragraph:
XII-a. Section 363 of this act shall take effect January 1, 2013.
4 Effective Date. This act shall take effect upon its passage.
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.