HB 155-FN - AS AMENDED BY THE HOUSE
8Jan2026... 2983h
2025 SESSION
25-0504
07/05
HOUSE BILL 155-FN
AN ACT reducing the rate of the business enterprise tax.
SPONSORS: Rep. Sweeney, Rock. 25; Rep. Alexander Jr., Hills. 29; Rep. Berry, Hills. 44; Rep. Osborne, Rock. 2
COMMITTEE: Ways and Means
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AMENDED ANALYSIS
This bill reduces the rate of the business enterprise tax for tax years ending on or after December 31, 2027.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
8Jan2026... 2983h 25-0504
07/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty Five
AN ACT reducing the rate of the business enterprise tax.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Paragraph; Business Enterprise Tax; Rate Reduced. Amend RSA 77-E:2 by inserting after paragraph II the following new paragraph:
III. For all taxable periods ending on or after December 31, [2026] 2027, a tax is imposed at the rate of 0.50 percent upon the taxable enterprise value tax base of every business enterprise.
2 Effective Date. This act shall take effect July 1, [2025] 2026.
25-0504
1/20/26
HB 155-FN- FISCAL NOTE
AS AMENDED BY THE HOUSE (AMENDMENT #2025-2983h)
AN ACT reducing the rate of the business enterprise tax.
FISCAL IMPACT: This bill does not provide funding, nor does it authorize new positions.
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Estimated State Impact | ||||||
| FY 2026 | FY 2027 | FY 2028 | FY 2029 | ||
Revenue | $0 | Indeterminable Decrease | Indeterminable Decrease | Indeterminable Decrease | ||
Revenue Fund(s) | General Fund and Education Trust Fund | |||||
Expenditures* | $0 | $0 | $0 | $0 | ||
Funding Source(s) | None | |||||
Appropriations* | $0 | $0 | $0 | $0 | ||
Funding Source(s) | None | |||||
*Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill | ||||||
METHODOLOGY:
This bill reduces the Business Enterprise Tax (BET) rate from 0.55% to 0.50% for taxable periods ending on or after December 31, 2027. The Department of Revenue Administration states the fiscal impact is indeterminable as the Department is not able to predict future BET tax revenue. Based on the following assumptions/information, the Department is able to estimate a possible fiscal impact:
The first table below provides the tax rates and splits. The second table provides an estimated impact the rate changes will have on revenue.
Table 1. Proposed Legislation Rates and Splits
Fiscal Year | Tax Year | % Applicable to Tax Year | BET Rates |
Fiscal Year 2027 | Tax Year 2025 | 12% | 0.55% |
Tax Year 2026 | 69% | 0.55% | |
Tax Year 2027 | 19% | 0.50% | |
Fiscal Year 2028 | Tax Year 2026 | 12% | 0.55% |
Tax Year 2027 | 69% | 0.50% | |
Tax Year 2028 | 19% | 0.50% | |
Fiscal Year 2029 and forward | Tax Year 2027 | 12% | 0.50% |
Tax Year 2028 | 69% | 0.50% | |
Tax Year 2029 | 19% | 0.50% |
Table 2. BET Rate Change Fiscal Impact - Static Analysis
Fiscal Year | TY 2023 Revenues with Current Law | Estimated Revenues with Proposed Legislation | Estimated Fiscal Impact Per Year (Proposed Legislation Compared to Current Law) | Cumulative Fiscal Impact (Proposed Legislation Compared to Current Law) |
2026 | $264,700,000 | $264,700,000 | $0 | $0 |
2027 | $264,700,000 | $260,100,000 | ($4,600,000) | ($4,600,000) |
2028 | $264,700,000 | $243,500,000 | ($21,200,000) | ($25,800,000) |
2029 and forward | $264,700,000 | $222,300,000 | ($24,100,000) | ($49,900,000) |
The fiscal impact of the proposed rate reduction as depicted in the above table may be overstated or understated for future years depending on whether actual revenue is more or less than the TY 2023 revenue.
The Department would need to update all necessary tax return forms and electronic management systems to reflect the change in the BET rate; however, it is not anticipated this will result in any additional administrative costs that could not be absorbed in the Department's operating budget.
AGENCIES CONTACTED:
Department of Revenue Administration
| Date | Amendment |
|---|---|
| Oct. 20, 2025 | 2025-2983h |
| Date | Body | Type |
|---|---|---|
| Jan. 28, 2025 | House | Hearing |
| March 4, 2025 | House | Exec Session |
| Oct. 6, 2025 | House | Exec Session |
| Oct. 17, 2025 | House | Floor Vote |
| Jan. 8, 2026 | House | Floor Vote |
| Feb. 4, 2026 | Senate | Hearing |
Jan. 28, 2026: Hearing: 02/04/2026, Room 122-123, SH, 09:30 am; SC 4
Jan. 15, 2026: Introduced 01/07/2026 and Referred to Ways and Means; SJ 2
Jan. 8, 2026: Ought to Pass with Amendment 2025-2983h: MA RC 189-165 01/08/2026 HJ 2
Jan. 8, 2026: Amendment # 2025-2983h: AA VV 01/08/2026 HJ 2
Jan. 8, 2026: Special Order to the next order of busisness (Rep. Osborne): MA VV 01/08/2026 HJ 2
Oct. 20, 2025: Minority Committee Report: Inexpedient to Legislate
Oct. 20, 2025: Majority Committee Report: Ought to Pass with Amendment # 2025-2983h 10/17/2025 (Vote 11-9; RC) HC 51 P. 45
Oct. 20, 2025: Executive Session: 10/06/2025 10:00 am GP 159
Sept. 16, 2025: ==CANCELLED== Full Committee Work Session: 10/08/2025 10:00 am GP 159
Sept. 16, 2025: Full Committee Work Session: 10/06/2025 10:00 am GP 159
March 5, 2025: Retained in Committee
Feb. 27, 2025: Executive Session: 03/04/2025 11:00 am LOB 202-204
Jan. 22, 2025: Public Hearing: 01/28/2025 10:45 am LOB 202-204
Jan. 6, 2025: Introduced 01/08/2025 and referred to Ways and Means HJ 2 P. 8