SB 239-FN - AS INTRODUCED
2015 SESSION
15-1029
10/03
SENATE BILL 239-FN
AN ACT relative to application of the Internal Revenue Code to provisions of the business profits tax.
SPONSORS: Sen. Bradley, Dist 3
This bill updates the effective version of the United States Internal Revenue Code of 1986 applicable to the business profits tax, subject to certain exceptions.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
15-1029
10/03
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Fifteen
AN ACT relative to application of the Internal Revenue Code to provisions of the business profits tax.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Subparagraph; Business Profits Tax; Definition; United States Internal Revenue Code. Amend RSA 77-A:1, XX by inserting after subparagraph (l) the following new subparagraph:
(m) For all tax years beginning after January 1, 2014, the United States Internal Revenue Code of 1986 in effect on December 31, 2013; except that section 168 of the Internal Revenue Code shall apply as it was in effect as provided under subparagraph (l), section 179 of the Internal Revenue Code shall apply as provided in RSA 77-A:3-a, and section 199 of the Internal Revenue Code shall not apply.
2 Repeal. RSA 77-A:1, X(g), relative to a reference to the Internal Revenue Code, is repealed.
3 Effective Date. This act shall take effect July 1, 2015.
LBAO
15-1029
Revised 02/27/15
SB 239-FN FISCAL NOTE
AN ACT relative to application of the Internal Revenue Code to provisions of the business profits tax.
FISCAL IMPACT:
The Department of Revenue Administration states this bill, as introduced, would decrease state general and education trust fund revenue by an indeterminable amount in FY 2016 and each year thereafter. This bill would have no fiscal impact on state, county, and local expenditures, or county and local revenue.
METHODOLOGY:
The Department of Revenue Administration (DRA) states this bill amends the definition of the term “United State Internal Revenue Code” (IRC), as used within the Business Profits Tax, RSA 77-A:1, XX. More specifically, for all tax periods beginning after January 1, 2014, the term shall mean the IRC of 1986 in effect on December 31, 2013. Within that definition, this bill makes an exception (or “decouples”) from three (3) sections of the IRC of 1986 in effect on December 31, 2013: Section 168 of the IRC, which shall apply as it was in effect as provided under subparagraph (l) (IRC of 1986 in effect on December 31, 2000); Section 179 of the IRC, which shall apply as provided in RSA 77-A:3-a; and Section 199 of the IRC, which shall not apply. Under current law, every business organization which commences business after December 31, 2000, or has been in New Hampshire prior to December 31, 2000 and has availed their business of federal tax law changes after December 31, 2000, must account for the differences between the IRC in place on December 31, 2000 and the changes made to the IRC by Congress from January 1, 2001 to the end date of the New Hampshire business tax return. Since 2000, there have been at least 20 different federal tax acts adopted, each containing a number of various amendments/extensions to federal tax laws. The Department cannot provide an estimate on any potential decreases in revenue since they are unable to predict which federal tax provisions would apply to New Hampshire taxpayers for their current and future tax returns. The Department further states this bill has retroactive application, thereby causing thousands of taxpayers to amend their business tax returns for Tax Year 2014.