HB 1546-FN - AS INTRODUCED
2026 SESSION
26-2789
07/09
HOUSE BILL 1546-FN
AN ACT repealing the business profits tax.
SPONSORS: Rep. Ankarberg, Straf. 7; Rep. Tom Mannion, Hills. 1; Rep. Warden, Hills. 39
COMMITTEE: Ways and Means
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ANALYSIS
This bill repeals the business profits tax and all references thereto.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
26-2789
07/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty-Six
AN ACT repealing the business profits tax.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 The State and Its Government; State Treasurer; Application of Receipts. Amend RSA 6:12, I(b)(65) to read as follows:
(65) Money received under [RSA 77-A,] RSA 77-E, RSA 78, RSA 78-A, RSA 78-B, RSA 83-F, RSA 284:44 and RSA 284:47, and from the sweepstakes fund, which shall be credited to the education trust fund under RSA 198:39.
2 The State and Its Government; State Treasurer; Exemptions From Certain Reporting Requirements. Amend RSA 6:12-k, I(d) to read as follows:
(d) RSA 6:12, I, (b)(65), relative to money received under [RSA 77-A,] RSA 77-E, RSA 78, RSA 78-A, RSA 78-B, RSA 83-F, RSA 284:44 and RSA 284:47, and from the sweepstakes fund, which shall be credited to the education trust fund under RSA 198:39.
3 The State and Its Government; State Treasurer; Investment of Funds. Amend RSA 6:8, I-a(c) to read as follows:
(c) The out-of-state bank pays the business enterprise tax [or business profits tax] based on its business activity in the state during its fiscal year.
4 The State and Its Government; Legislative Ethics Committee; Financial Disclosure Form. Amend RSA 14-B:8, III(q) to read as follows:
(q) New Hampshire taxes, specifying if [business profits tax or] business enterprise tax.
5 The State and Its Government; Financial Disclosure; Form of Disclosure. Amend RSA 15-A:5, I(d)(17) to read as follows:
(17) New Hampshire taxes, specifying if [business profits tax or] business enterprise tax.
6 The State and Its Government; Department of Revenue Administration; Confidentiality of Department Records. Amend RSA 21-J:14, V(d)(10) to read as follows:
(10) An officer or employee of the insurance department, pursuant to an agreement for exchange of information between the department and the insurance department, [for the purposes of sharing information received by the department from insurance companies that claim a business enterprise tax credit, pursuant to RSA 400-A:34-a,] and only to the extent necessary, for the administration and collection of tax premiums by the insurance department. The information disclosed pursuant to such exchange agreement shall not include records, files, returns, or information disclosed to officers or employees of the department by any other state, pursuant to a compact for the exchange of information between the department and any other state, unless permitted by such state or compact. Officers or employees of the insurance department, having in their custody or control any confidential taxpayer information obtained from the department pursuant to the exchange agreement authorized under this subparagraph, shall be subject to the provisions of RSA 21-J:14.
7 The State and Its Government; Department of Revenue Administration; Penalty for Failure to File. Amend RSA 21-J:31 to read as follows:
21-J:31 Penalty for Failure to File. Any taxpayer who fails to file a return when due, unless an extension has been granted by the department, shall pay a penalty equal to 5 percent of the amount of the tax due or $10, whichever is greater, for each month or part of a month during which the return remains unfiled. The total amount of any penalty shall not, however, exceed 25 percent of the amount of the tax due or $50, whichever is greater. This penalty shall not be applied in any case in which a return is filed within the extended filing period as provided in [RSA 77-A:9,] RSA 77-E:8, RSA 83-C:6, RSA 84-A:7, or RSA 84-C:7, or the failure to file was due to reasonable cause and not willful neglect of the taxpayer. The amount of the penalty is determined by applying the percentages specified to the net amount of any tax due after crediting any timely payments made through estimating or other means.
8 Department of Revenue Administration. Amend RSA 21-J:33-a, I to read as follows:
I. If there is a substantial understatement of tax imposed under [RSA 77-A,] RSA 77-E, RSA 78-A, RSA 78-C, RSA 82-A, RSA 83-C, or RSA 84-A for any taxable period, there shall be added to the tax an amount equal to 25 percent of the amount of any underpayment attributable to such understatement.
9 The State and Its Government; Department of Revenue Administration; Extension of Tax Filing Deadlines for Members of the Armed Forces and National Guard. Amend RSA 21-J:46, III to read as follows:
III. This section shall apply only to tax returns and associated payments under [RSA 77-A and] RSA 77-E.
10 Taxation; Tax Expenditures and Potential Liability Reports; Tax Expenditures Specified. Amend RSA 71-C:2 to read as follows:
71-C:2 Tax Expenditures Specified. Tax expenditures include, but may not be limited to, the community development finance authority investment tax credit as computed in RSA 162-L:10; the economic revitalization zone tax credit as computed in RSA 162-N:6; [the research and development tax credit under RSA 77-A:5, XIII;] the Coos county job creation tax credit under RSA 77-E:3-c; the education tax credit as computed in RSA 77-G:4; the regional career and technical education center tax credit pursuant to RSA 188-E:9-a; and the exemption for qualified regenerative manufacturing companies allowed under [RSA 77-A:1, I and] RSA 77-E:1, III.
11 Taxation; Tax Expenditure and Potential Liability Reports; Tax Expenditure and Potential Liability Report. Amend RSA 71-C:4, I and II to read as follows:
I. On or before December 15 of every fiscal year the commissioner of the department of revenue administration shall certify in a report to the general court and the governor an analysis of each of the past fiscal year's tax expenditures as identified in RSA 71-C:2, and other credits allowed under [RSA 77-A,] RSA 77-E, RSA 77-G, RSA 78, RSA 78-A, 78-B, RSA 82-A, RSA 84-A, RSA 84-C, and RSA 400-A.
II. The report shall be divided into the following parts:
(a) Tax expenditures as determined by the joint committee on tax expenditure review under RSA 71-C:3;
(b) Potential liabilities against the state's revenues, specifically:
(1) Other credits allowed under [RSA 77-A,] RSA 77-E, RSA 77-G, RSA 78, RSA 78-A, RSA 78-B, RSA 82, RSA 82-A, RSA 83-E, RSA 84-A, RSA 84-C[, and RSA 400-A against the business profits tax imposed by RSA 77-A;] and
(2) Credit carryovers from overpaid taxes.
12 Taxation; Business Enterprise Tax; Definitions. Amend RSA 77-E:1, V to read as follows:
V. For taxable periods beginning on or after January 1, 2013, "compensation" means:
(a) All wages, salaries, fees, bonuses, commissions, or other payments paid directly or accrued by the business enterprise in the taxable period on behalf of or for the benefit of employees, officers, or directors of the business enterprise and subject to or specifically exempt from withholding under section 3401 of the United States Internal Revenue Code except such payments as are made expressly exempt from withholding under sections 3401(a)(1), (9), (10), (13), (14), (15), (16), (18), (19), and (20); and except any tips required to be reported by the employee to the employer under section 6053(a) of the United States Internal Revenue Code; and
[(b) The amount of any deduction taken under RSA 77-A:4, III in the taxable period; and]
[(c)] (b) Any net earnings from self-employment subject to tax under section 1401 of the United States Internal Revenue Code [to the extent not included in the amount of any deduction taken under RSA 77-A:4, III in the taxable period].
13 Taxation; Business Enterprise Tax; Definitions. Amend RSA 77-E:1, XIV(b) to read as follows:
(b) A qualified investment company shall limit its activities to investment or other activities consistent with its organizational purpose and those incidental to or in support of such activities provided that any such exception from investment company status by reason of section 3(c)(7) is available only to issuers whose securities are owned by persons or organizations who are deemed under section 3(c)(7) or any order, regulation or interpretation thereunder not to require protection under the provisions of the Investment Company Act by reason of their size, nature, status, or sophistication. [A business organization seeking qualified investment company status shall file an election pursuant to RSA 77-A:5-b.]
14 Taxation; Business Profits Tax; Definitions. RSA 77-E:1, XIV-a is repealed and reenacted to read as follows:
XIV-a "Qualified regenerative manufacturing company" means any business organization which meets each of the following requirements at all times during the entire taxable year:
(a)(1) It files with its return for the taxable year an election to be a qualified regenerative manufacturing company in accordance with RSA 77-A:5-c or has made such election for a previous taxable year; and
(2) At least 75 percent of its business activities over the course of the tax year meet the requirements for an active regenerative manufacturing business, or, in the case of a subsidiary located in New Hampshire, 75 percent of that subsidiary's business activities meet the requirements for an active regenerative manufacturing business.
(b) For purposes of this paragraph, the term "regenerative manufacturing" means any aspect of the manufacturing of blood, tissues, tissue constructs, and organs for the purpose of researching, diagnosing, treating, or curing any disease or injury, such as (1) cell collection, culture and scale-up, (2) biomaterial selection and scale-up, (3) tissue process automation and monitoring, (4) tissue maturing, and (5) tissue preservation and transport.
(c) For purposes of this paragraph, the term "active regenerative manufacturing business" means the conduct of any business activity the primary focus of which is any one or more of the following areas:
(1) Performing research relating to regenerative manufacturing;
(2) Performing regenerative manufacturing activities;
(3) Researching, developing, manufacturing, or supplying technical services in support of regenerative manufacturing, such as process engineering, automation, facility set-up, and distribution services;
(4) Researching, developing, manufacturing, or supplying technologies utilized in regenerative manufacturing, such as cellular and non-cellular source materials, tools, equipment, reagents, and other supplies; and
(5) Performing any activity necessary to bring a product created through regenerative manufacturing to market, including but not limited to seeking patents, regulatory approval, performing clinical trials, and sales.
15 Taxation; Business Enterprise Tax; Special Adjustments. Amend RSA 77-E:3, I to read as follows:
I. In the case of a business enterprise, the enterprise value tax base of which includes compensation derived from self-employment income subject to tax under section 1401 of the United States Internal Revenue Code, a deduction of such amounts of compensation as are retained for use in the business enterprise[, except that no amount of compensation deducted under RSA 77-A:4, III shall be included in this deduction]. The burden shall be upon the business enterprise to show that any amounts deducted have actually been retained for use in the business enterprise.
16 Taxation; Business Enterprise Tax; Apportionment. Amend RSA 77-E:4, I(a)(1) to read as follows:
(1) Include the amount [of any deduction taken pursuant to RSA 77-A:4, III, the amount] relating to self-employment income and the amount relating to wages and salaries subject to or specifically exempt from withholding under section 3401 of the United States Internal Revenue Code except such payments as are made expressly exempt from withholding under sections 3401(a)(1), (9), (10), (13), (14), (15), (16), (18), (19), and (20); and
17 Taxation; Education Tax Credit; Definitions. RSA 77-G:1, III is repealed and reenacted to read as follows:
I. "Business organization" means any enterprise, whether corporation, partnership, limited liability company, proprietorship, association, business trust, real estate trust or other form of organization; organized for gain or profit, carrying on any business activity within the state, except such enterprises as are expressly made exempt from income taxation under the United States Internal Revenue Code. Trusts or foundations treated as grantor trusts under section 671 of the United States Internal Revenue Code shall be included in the return of their owners, and such owners shall be subject to the tax thereon to the extent such owners would be considered a business organization hereunder notwithstanding the existence of the trust or foundation. The use of consolidated returns as defined in the United States Internal Revenue Code is not permitted. Notwithstanding any other provision of this paragraph, an enterprise shall not be characterized as a business organization and shall be excluded from taxation at the entity level if it elects to be treated as a qualified investment company or if it elects to be treated as a qualified regenerative manufacturing company. A partnership, limited liability company, estate, trust, or foundation except grantor trusts pursuant to section 671 of the United States Internal Revenue Code, "S" corporation, real estate investment trust, or any other such entity, other than an organization electing to be treated as a qualified investment company whose net income is reportable by the true owners either directly or indirectly, or an organization electing to be treated as a qualified regenerative manufacturing company, shall be subject to tax at the entity level, and no part of such earnings or loss shall be included in the calculation of the gross business profits of the owners of such entity.
18 Taxation; Education Tax Credit; Scholarship Organizations. Amend RSA 77-G:5, I(i)(2) to read as follows:
(2) Not knowingly award a scholarship to any lineal descendant or equivalent step-person of any proprietor, partner, or member of any business organization, business enterprise, or individual making a contribution to a scholarship organization and claiming a credit against the [business profits tax or] business enterprise tax, nor any lineal descendant or equivalent step-person of any officer, director, or owner of more than a 5 percent interest in any business organization, business enterprise, or individual making a contribution to a scholarship organization and claiming a credit against the [business profits tax or] business enterprise tax, nor any employee who is among the highest-paid 20 percent of paid employees in any business organization, business enterprise, or individual making a contribution to a scholarship organization and claiming a credit against the [business profits tax or] business enterprise tax.
19 Acquisition of Lands by United States; Federal Aid; Relocation Assistance and Real Property Acquisition; Payments not Income or Resources. Amend RSA 124-A:12 to read as follows:
124-A:12 Payments not Income or Resources. No payment received by a displaced person under this chapter shall be considered as income for the purpose of determining the eligibility or extent of eligibility of any person for assistance under any state law or for the purposes of [RSA 77-A or] any [other] direct or indirect tax on income under state law.
20 Public Safety and Welfare; Economic Revitalization Zone Tax Credits; Application of Economic Revitalization Zone Tax Credit. Amend RSA 162-N:7 to read as follows:
162-N:7 Application of Economic Revitalization Zone Tax Credit. The economic revitalization zone tax credit shall be applied against the [business profits tax under RSA 77-A, and any unused portion thereof may be applied against the] business enterprise tax under RSA 77-E. Any unused portion of the credit allowed under this chapter or any eligible credit in excess of $40,000 allowed under this chapter, may be carried forward and allowed against taxes due under [RSA 77-A or] RSA 77-E for 5 taxable periods from the taxable period in which the tax was paid. [For the purpose of the credit allowed under RSA 77-A:5, X, the economic revitalization zone credit shall be considered taxes paid under RSA 77-E.]
21 Public Safety and Welfare; Regenerative Manufacturing Workforce Development Program; Acquisition of Student Loans of Qualified New Hampshire Employees. Amend RSA 162-T:2, III(b) to read as follows:
(b) The person shall be employed to perform primarily active regenerative manufacturing business activities [as that term is defined in RSA 77-A:1, XXX] and the principal office at which such person is employed is located within New Hampshire;
22 Labor; Employee Leasing Companies; Tax Credits. Amend RSA 277-B:17-a to read as follows:
277-B:17-a Tax Credits. For purposes of determination [of business profits tax credits under RSA 77-A,] Coos county job creation credits under RSA 162-Q, economic revitalization zone credits under RSA 162-N, or any other available statutory tax credits provided by this state that are based on employment, leased employees shall be deemed employees solely of the client company if an election is made pursuant to RSA 77-E:13-a. A client company shall be entitled to the benefit of any such tax credit arising as the result of the employment of leased employees of such client company. Notwithstanding that the employee leasing company is the W-2 reporting employer, the client company shall continue to qualify for [business profits tax credits under RSA 77-A,] Coos county job creation credits under RSA 162-Q, economic revitalization zone credits under RSA 162-N, or any other available statutory tax credits. Leased employees working for other client companies of the employee leasing company shall not be counted together. Each employing leasing company shall provide, upon request by a client company, state agency, or department responsible for administration of any such tax credit, employment information reasonably required by such agency or department and necessary to support any request, claim, application, or other action by a client company seeking any such tax credit. This section shall not apply to the administration of RSA 282-A.
23 Corporations, Associations, and Proprietors of Common Lands; Dissolution; Effect of Dissolution. Amend RSA 293-A:14.05, (b) to read as follows:
(b) Prior to making any distributions of its remaining property among its shareholders according to their interests, the corporation shall first obtain a certificate of dissolution from the department of revenue administration in accordance with [RSA 77-A:18 and] RSA 77-E:12.
24 Corporations, Associations, and Proprietors of Common Lands; Dissolution; Reinstatement Following Administrative Dissolution. Amend RSA 293-A:14.22, (a)(4) to read as follows:
(4) contain a certificate from the department of revenue administration in accordance with [RSA 77-A:18, III, and] RSA 77-E:12, III, if such application is received by the secretary of state more than 120 days after the notice of administrative dissolution is mailed.
25 Corporations, Associations, and Proprietors of Common Lands; Foreign Corporations; Authority to Transact Business Required. Amend RSA 293-A:15.01, (d) to read as follows:
(d) Nothing in this section shall be construed so as to preclude a determination that a foreign corporation is carrying on business activity within this state [within the meaning of RSA 77-A:1, XII].
26 Corporations, Associations, and Proprietors of Common Lands; Foreign Corporations; Authority to Transact Business Required. Amend RSA 293-A:15.20, (b)(6) to read as follows:
(6) a statement of withdrawal from the New Hampshire department of revenue administration in accordance with [RSA 77-A:18, II and] RSA 77-E:12, II.
27 Corporations, Associations, and Proprietors of Common Lands; Treatment of New Hampshire Investment Trusts; Definitions. Amend RSA 293-B:2, IV to read as follows:
IV. "New Hampshire investment trust" means a ["qualified investment company" as defined in RSA 77-A:1, XXI] qualified investment company.
28 Corporations, Associations, and Proprietors of Common Lands; Treatment of New Hampshire Investment Trusts; Definitions. Amend RSA 293-B:2, VI to read as follows:
VI. "Other investment entity" means an out-of-state investment entity which [meets the definition of a "qualified investment company" as defined in RSA 77-A:1, XXI] is a qualified investment company, with the exception that such other investment entity need not submit certification to the commissioner.
29 Partnerships; Foreign Limited Liability Companies; Transactions Not Constituting Doing Business. Amend RSA 304-C:174, III to read as follows:
III. This section does not apply in determining the contacts or activities that may subject a foreign limited liability company to service of process or taxation in this state or to regulation under any other law of this state[, and nothing in this section shall be construed to preclude a determination that a foreign limited liability company is carrying on a business activity in this state within the meaning of RSA 77-A:1, XII].
30 Partnerships; Foreign Limited Liability Companies; Appeals From Revocations. Amend RSA 304-C:185, III to read as follows:
III. The court may summarily order the secretary of state to reinstate the certificate of authority or may take any other action the court considers appropriate[, except that nothing in this section shall be construed to preclude a determination that a foreign limited liability company is carrying on business activity within this state within the meaning of RSA 77-A:1, XII].
31 Insurance; Insurance Department; Credit for Business Enterprise Tax. Amend RSA 400-A:34-a to read as follows:
400-A:34-a Credit for Business Enterprise Tax. The tax imposed under RSA 77-E shall be allowed as a credit against the taxes due under this chapter [and shall be deemed to be taxes paid pursuant to this chapter for the purposes of RSA 77-A:5, III]. Any insurer subject to taxation under this chapter shall first apply such credits as provided in this section[, and then pursuant to RSA 77-A:5, X]. The taxes paid pursuant to RSA 77-E by an individual member of a unitary business [within the meaning of RSA 77-A:1, XIV] shall be allowed as a credit against any other individual member's liability under this chapter, provided that such other member is also subject to the tax imposed by this chapter. To the extent the credit for taxes paid pursuant to RSA 77-E exceeds the taxes imposed under this chapter, such excess shall be deemed to be taxes imposed under RSA 77-E [and shall be allowed as a credit against the taxes due under RSA 77-A as provided by RSA 77-A:5, X].
32 Repeals. The following are repealed:
I. RSA 21-J:45, I(a), relative to the reporting of business profits taxes.
II. RSA 21-J:28-b, VII, relative to the department of revenue administration bearing the burden of proof on any change to any compensation deduction under RSA 77-A.
III. RSA 77-A, relative to the business profits tax.
IV. RSA 77-E:3-b, relative to unused research and development tax credits.
V. RSA 77-E:3-f, relative to unused granite patron of the arts tax credits.
VI. RSA 77-E:5-a, relative to the election of qualified investment company status.
VII. RSA 77-E:13, relative to the application of credit for business enterprise tax against the business profits tax.
VIII. RSA 77-E:13-a, II, relative to employee leasing companies eligible for tax credits.
IX. RSA 77-G:3, relative to equal contribution credits made to scholarship organizations.
X. RSA 162-L:10, I(a), relative to new investment tax credits made in combination with business enterprise tax credits.
XI. RSA 162-L:10, II, relative to new investment tax credit made in combination with business enterprise tax credits.
XII. RSA 162-N:5, relative to limits on total economic revitalization zone tax credits.
XIII. RSA 162-P:1, relative to the research and development tax credit program report.
XIV. RSA 188-E:9-a, IV, relative to tax credits for donations to regional career and technical education center programs.
XV. RSA 188-E:9-a, VI, relative to tax credit statements for donations to regional career and technical education center programs.
XVI. RSA 198:39, II(a), relative to funds certified to the state treasurer by the commissioner of the department of revenue administration.
XVII. RSA 304-C:138, I(d), relative to a certificate mailed by the department of revenue administration.
XVIII. RSA 304-C:141, I, relative to certificates of dissolution issued by the department of revenue administration.
XIX. RSA 304-C:179, I(f), relative to a statement for withdrawal issued by the department of revenue administration.
XX. RSA 400-A:32, V, relative to tax credits for certain insurer liability.
33 Effective Date. This act shall take effect January 1, 2027.
26-2789
12/3/25
HB 1546-FN- FISCAL NOTE
AS INTRODUCED
AN ACT repealing the business profits tax.
FISCAL IMPACT:
|
| |||||
Estimated State Impact | ||||||
| FY 2026 | FY 2027 | FY 2028 | FY 2029 | ||
Revenue | $0 | Indeterminable Decrease | ||||
Revenue Fund(s) | General Fund and Education Trust Fund | |||||
Expenditures* | $0 | $9,500 | $0 | $0 | ||
Funding Source(s) | General Fund | |||||
Appropriations* | $0 | $0 | $0 | $0 | ||
Funding Source(s) | None | |||||
*Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill | ||||||
METHODOLOGY:
This bill repeals the Business Profits Tax (BPT) and associated tax credits effective January 1, 2027. The Department of Revenue Administration notes the bill does not specify which tax year the repeal applies. For purposes of this fiscal note, the Department assumes the first tax year impacted by the repeal is Tax Year (TY) 2027 (taxable periods ending on or after December 31, 2027).
The Department notes language should be added to the bill to effectuate the repeal without eliminating the ability of the Department to continue to administer and audit the tax periods prior to the repeal. Additionally, there may need to be further language cleanup in the statutes with deleted references.
The Department states this bill will decrease General Fund and Education Trust Fund revenues by an indeterminable amount. While the Department is not able to provide the exact fiscal impact, using TY 2023 data, most recently complete tax year, with the following assumptions the Department is able to provide an estimated impact of the repeal of the BPT:
Fiscal Year | Tax Year | % Applicable to Tax Year | Current Law BPT Rates | Proposed Law BPT Rates |
2027 | TY 2025 | 12% | 7.5% | 7.5% |
TY 2026 | 69% | 7.5% | 7.5% | |
TY 2027 | 19% | 7.5% | 0.0% | |
2028 | TY 2026 | 12% | 7.5% | 7.5% |
TY 2027 | 69% | 7.5% | 0.0% | |
TY 2028 | 19% | 7.5% | 0.0% | |
2029 and forward | TY 2027 and forward | 100% |
7.5% | 0.0% |
Based on the assumptions above, the Department is able to provide the potential impact on revenues in the table below.
Business Profits Tax All Funds- Static Analysis using TY 2023 Liability | ||||
Fiscal Year | Current Law Revenue Using TY2023 BPT Tax | Estimated Revenue with Proposed Legislation | Estimated Fiscal Impact Per Year | Cumulative Fiscal Impact |
2027 | $819,600,000 | $663,900,000 | ($155,700,000) | ($155,700,000) |
2028 | $819,600,000 | $98,400,000 | ($721,200,000) | ($876,900,000) |
2029 and Forward | $819,600,000 | $0 | ($819,600,000) | ($1,696,500,000) |
Further, the Department provided two additional tables - one showing impact on the General Fund and the other showing the impact on the Education Trust Fund.
Business Profits Tax General Fund - Static Analysis using TY 2023 Liability | ||||
Fiscal Year | Current Law Revenue Using TY2023 BPT Tax | Estimated Revenue with Proposed Legislation | Estimated Fiscal Impact Per Year | Cumulative Fiscal Impact |
2027 | $500,000,000 | $405,000,000 | ($95,000,000) | ($95,000,000) |
2028 | $500,000,000 | $60,000,000 | ($440,000,000) | ($535,000,000) |
2029 and Forward | $500,000,000 | $0 | ($500,000,000) | ($1,035,000,000) |
Business Profits Tax Education Trust Fund - Static Analysis using TY 2023 Liability | ||||
Fiscal Year | Current Law Revenue Using TY2023 BPT Tax | Estimated Revenue with Proposed Legislation | Estimated Fiscal Impact Per Year | Cumulative Fiscal Impact |
2027 | $319,600,000 | $258,900,000 | ($60,700,000) | ($60,700,000) |
2028 | $319,600,000 | $38,400,000 | ($281,200,000) | ($341,900,000) |
2029 and Forward | $319,600,000 | $0 | ($319,600,000) | ($661,500,000) |
The Department states business taxpayers are allowed to carry over 500% of their prior tax year’s liability as an overpayment on account for future tax years. With the elimination of the BPT tax, carry overs from BPT only taxpayers will most likely be refunded. At the end of FY2025 approximately $152.8 million was estimated to be a liability. Taking the BPT split of 75.7% for TY2023 and applying to the percentage of BPT only filers of 6.3%, there is potential for an additional $7.3 million in forced refunds during FY 2027 and FY 2028. Refunds are issued from the General Fund.
The Department states the proposed legislation would not result in any additional administrative costs that could not be absorbed in its operating budget other than a mail campaign to inform affected taxpayers of the repeal at a cost of approximately $9,500.
AGENCIES CONTACTED:
Department of Revenue Administration
Dec. 10, 2025: Introduced 01/07/2026 and referred to Ways and Means