CHAPTER 241
SB 435-FN - FINAL VERSION
02/16/2022 0311s
2022 SESSION
22-2990
10/05
SENATE BILL 435-FN
AN ACT relative to the net operating loss carryover under the business profits tax.
SPONSORS: Sen. Giuda, Dist 2; Sen. Bradley, Dist 3; Sen. Hennessey, Dist 1; Sen. Avard, Dist 12; Sen. Gannon, Dist 23; Rep. Edwards, Rock. 4; Rep. Lang, Belk. 4
COMMITTEE: Ways and Means
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ANALYSIS
This bill modifies the calculation of net operating loss carryover for determining taxable business profits 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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
02/16/2022 0311s 22-2990
10/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Two
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:
241:1 Business Profits Tax; Definition of Taxable Business Profits; Net Operating Loss Carryovers. Amend RSA 77-A:1, IV to read as follows:
IV. "Taxable business profits" means gross business profits adjusted by the additions and deductions provided in RSA 77-A:4 except net operating loss carryover as defined in RSA 77-A:4, XIII, and then adjusted by the method of apportionment provided in RSA 77-A:3, and then further adjusted by net operating loss carryover as defined in RSA 77-A:4, XIII.
241:2 Business Profits Tax; Additions and Deductions; Net Operating Loss Carryover. Amend RSA 77-A:4, XIII to read as follows:
XIII. A deduction for the amount of the net operating loss carryover determined under section 172 of the United States Internal Revenue Code [in effect on December 31, 1996] apportioned in the year incurred according to RSA 77-A:3. A net operating loss shall only be apportioned in the year incurred [according to RSA 77-A:3] and not in the subsequent years it adjusts gross business profits. Net operating losses may only be carried forward for the 10 years following the loss year. For taxable periods ending:
(a) On or before June 30, 2003, the amount of net operating loss generated in a tax year that may be carried forward may not exceed $250,000.
(b) On or after July 1, 2003 and on or before June 30, 2004, the amount of net operating loss generated in a tax year that may be carried forward may not exceed $500,000.
(c) On or after July 1, 2004 and on or before June 30, 2005, the amount of net operating loss generated in a tax year that may be carried forward may not exceed $750,000.
(d) On or after July 1, 2005, the amount of net operating loss generated in a tax year that may be carried forward may not exceed $1,000,000.
(e) On or after 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.
In the case of a business organization not qualifying for treatment as a subchapter C corporation under the United States Internal Revenue Code, such deduction shall be the amount that would be determined under section 172 of the United States Internal Revenue Code [in effect on December 31, 1996] if the business organization were a subchapter C corporation and as limited by this section. A deduction for the amount of the net operating loss carryover shall be limited to losses incurred on or after July 1, 1997.
241:3 Applicability. This act shall apply to business organizations' tax years ending on or after December 31, 2022.
241:4 Effective Date. This act shall take effect July 1, 2022.
Approved: June 17, 2022
Effective Date: July 01, 2022
| Date | Body | Type |
|---|---|---|
| Jan. 26, 2022 | Senate | Hearing |
| Feb. 3, 2022 | Senate | Floor Vote |
| Feb. 3, 2022 | Senate | Floor Vote |
| Feb. 16, 2022 | Senate | Floor Vote |
| Feb. 16, 2022 | Senate | Floor Vote |
| April 5, 2022 | House | Hearing |
| April 14, 2022 | House | Exec Session |
| House | Floor Vote |
June 22, 2022: Signed by the Governor on 06/17/2022; Chapter 0241; Effective 07/01/2022
June 7, 2022: Enrolled (in recess of) 05/26/2022 HJ 14
June 6, 2022: Enrolled Adopted, VV, (In recess 05/26/2022); SJ 13
June 7, 2022: Enrolled (in recess of) 05/26/2022 HJ 14
June 6, 2022: Enrolled Adopted, VV, (In recess 05/26/2022); SJ 13
May 5, 2022: Ought to Pass: MA VV 05/05/2022 HJ 12
April 27, 2022: Minority Committee Report: Inexpedient to Legislate
April 27, 2022: Majority Committee Report: Ought to Pass (Vote 21-1; RC)
April 26, 2022: Executive Session: 04/14/2022 10:00 am LOB 202-204
April 6, 2022: Full Committee Work Session: 04/14/2022 10:00 am LOB 202-204
April 6, 2022: Full Committee Work Session: 04/12/2022 10:00 am LOB 202-204
March 29, 2022: Public Hearing: 04/05/2022 11:30 am LOB 202-204
March 23, 2022: Introduced 03/17/2022 and referred to Ways and Means
Feb. 16, 2022: Ought to Pass with Amendment 2022-0311s, MA, VV; OT3rdg; 02/16/2022; SJ 3
Feb. 16, 2022: Committee Amendment # 2022-0311s, AA, VV; 02/16/2022; SJ 3
Feb. 16, 2022: Special Order to after the Committee on Education, Without Objection, MA; 02/16/2022; SJ 3
Feb. 7, 2022: Committee Report: Ought to Pass with Amendment # 2022-0311s, 02/16/2022; SC 7
Feb. 3, 2022: Special Order to the Next Session, Without Objection, MA; 02/03/2022; SJ 2
Jan. 26, 2022: Committee Report: Ought to Pass with Amendment # 2022-0311s, 02/03/2022; SC 5
Jan. 6, 2022: Hearing: 01/26/2022, Room 100, SH, 09:45 am; SC 2
Dec. 30, 2021: To Be Introduced 01/05/2022 and Referred to Ways and Means; SJ 1