Revision: Nov. 7, 2023, 5:09 p.m.
2024 SESSION
24-2541.1
05/10
HOUSE BILL [bill number]
AN ACT relative to the safe harbor compensation amount under the business profits tax.
SPONSORS: [sponsors]
COMMITTEE: [committee]
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ANALYSIS
This bill increases the amount of the safe harbor provision for compensation under the business profits tax and provides for a biennial increase in future years based on the percentage change in the Consumer Price Index.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
24-2541.1
05/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Four
AN ACT relative to the safe harbor compensation amount under the business profits tax.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Business Profits Tax; Safe Harbor Amount. Amend RSA 77-A:4, III(c) to read as follows:
(c) In lieu of substantiating the value of the personal services of proprietors, partners, or members, a business organization or group of related business organizations may elect, as a record-keeping safe harbor, to deduct up to [$75,000] $100,000 as total compensation for the tax year. For tax years beginning on and after January 1, 2025, the commissioner shall biennially adjust this threshold amount rounding to the nearest $1,000 based on the 2-year (24-month) percentage change in the Consumer Price Index for All Urban Consumers, Northeast Region as published by the Bureau of Labor Statistics, United States Department of Labor, using the amount published for the month of June in the year prior to the start of the tax year;
2 Applicability. This act shall apply to taxable periods ending on or after December 31, 2024.
3 Effective Date. This act shall take effect 60 days after its passage.