TITLE V
TAXATION

Chapter 77-A
BUSINESS PROFITS TAX

Section 77-A:1

    77-A:1 Definitions. –
When appearing in this chapter:
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 as defined in RSA 77-A:1, XX. Each enterprise under this definition shall be subject to taxation under RSA 77-A:2 as a separate entity, unless specifically authorized by this chapter to be treated otherwise, such as, but not limited to, combined reporting. 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 as defined in RSA 77-A:1, XX 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 as defined in RSA 77-A:1, XXI or if it elects to be treated as a qualified regenerative manufacturing company as defined in RSA 77-A:1, XXX. 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 as defined in RSA 77-A:1, XXI 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 as defined in RSA 77-A:1, XXX, 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.
II. "Commissioner" means the commissioner of revenue administration.
III. "Gross business profits" means:
(a) In the case of a corporation, except "S" corporations, or any other business organization required to make and file a United States corporation income tax return, or in the case of a corporation which does not make and file a separate United States corporation income tax return for itself because it is a member of an affiliated group pursuant to the provisions of chapter 6 of the United States Internal Revenue Code as defined in RSA 77-A:1, XX, the amount of taxable income as would be determinable under the provisions of the United States Internal Revenue Code as defined in RSA 77-A:1, XX before the application of any net operating loss deduction, special deductions shown on line 29 of the federal corporate income tax return, or any other special deductions allowable only to a certain class of corporate taxpayer.
(b) In the case of "S" corporations or any other business organizations required to make and file an "S" corporation return, the net profit from all business activity determined in accordance with rules adopted by the department of revenue administration under RSA 541-A.
(c) In the case of a partnership or any other business organization required to make and file a United States partnership return of income, the amount of ordinary income as would be determinable under the provisions of the United States Internal Revenue Code as defined in RSA 77-A:1, XX increased by the amounts shown as payments to partners on the federal partnership return of income, the net amount of any gains from the sale of partnership assets, items of income specifically allocated to partners and decreased by any deductions specifically allocated to partners or losses on the sale of partnership assets.
(d) In the case of a proprietorship, the amount of net profit or loss from a business, profession, rental, or farming activities as would be determinable under the provisions of the United States Internal Revenue Code as defined in RSA 77-A:1, XX adjusted by the amount of any gains or losses from the sale of assets held or used in business activity.
(e) In the case of a trust, estate, or any other business organization engaging in business activity, the amount of net profit from such business activity and the net amount of any gains from the sale of assets held for use in business activity.
(f) In the case of any business organization which is part of a water's edge combined group and which does not make or file a United States income tax return or schedule under subparagraphs (a)-(d), the amount of net income as would be determinable under the provisions of the United States Internal Revenue Code as defined in RSA 77-A:1, XX and applied within the concepts of RSA 77-A for such business organizations.
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.
V. "Taxable period" means the calendar year or fiscal year which the taxpayer uses for United States income tax purposes, or that part of a year for which a return is made.
VI. "Gross business income" means all income for federal income tax purposes from whatever source derived in the conduct of business activity, including but not limited to gross proceeds from sales, compensation for rendering services, gross proceeds realized from trading in stocks, bonds, or other evidences of indebtedness, gross proceeds realized from sale of assets used in trade or business, interest, discount, gross rents, royalties, fees, commissions, dividends, without any deduction on account of the cost of property sold, the cost of materials used, labor costs, interest, discount, delivery costs, taxes, or any other expense paid or accrued and without any deduction on account of losses.
VII. "Prescribed Filing Date" means the original statutory due date, or approved extended due date.
VIII. "Prescribed Payment Date" means the original statutory due date.
IX. "Qualified charitable contributions" means a charitable contribution of tangible personal property as defined in section 1221(1) of the United States Internal Revenue Code as defined in RSA 77-A:1, XX, but only if all of the following conditions are met:
(a) The contribution is either to an educational organization which is described in section 170(b)(1)(A)(ii) of the United States Internal Revenue Code as defined in RSA 77-A:1, XX or to an institution of higher education as defined in section 3304(f) of the United States Internal Revenue Code as defined in RSA 77-A:1, XX or to both an educational organization and an institution of higher education as defined in this subparagraph.
(b) The contribution is made not later than one year after the date the manufacture or purchase of the property is substantially completed.
(c) The original use of the property is by the donee.
(d) The property is a computer, scientific equipment, or apparatus, all of the use of which by the donee is directly for the education of students in the state of New Hampshire.
(e) The property is not transferred by the donee in exchange for money, other property, or services.
(f) The taxpayer receives from the donee a written statement representing that its use and disposition of the property shall be in accordance with these provisions.
(g) The contribution is made between July 1, 1983, and June 30, 1984.
X. "Qualified research contribution" means a charitable contribution by a taxpayer of tangible personal property as defined in section 1221(1) of the United States Internal Revenue Code as defined in RSA 77-A:1, XX, but only if all of the following conditions are met:
(a) The contribution is either to an educational organization which is described in section 170(b)(1)(A)(ii) of the United States Internal Revenue Code as defined in RSA 77-A:1, XX or to an institution of higher education as defined in section 3304(f) of the United States Internal Revenue Code as defined in RSA 77-A:1, XX or to both an educational organization and an institution of higher education as defined in this subparagraph.
(b) The contribution is made not later than 2 years after the date the manufacture or purchase of the property is substantially completed.
(c) The original use of the property is by the donee.
(d) The property is scientific equipment or apparatus, substantially all of the use of which by the donee is for research or experimentation, or for research training in physical or biological sciences for students.
(e) The property is not transferred by the donee in exchange for money, other property, or services.
(f) The taxpayer receives from the donee a written statement representing that its use and disposition of the property shall be in accordance with these provisions.
(g) [Repealed.]
XI. "Business asset" means any tangible or intangible property, whether real or personal, previously used, currently used, or available for use in any business activity.
XII. "Business activity" means a substantial economic presence evidenced by a purposeful direction of business toward the state examined in light of the frequency, quantity, and systematic nature of a business organization's economic contacts with the state. "Business activity" includes, but is not limited to, a group of actions performed by a business organization for the purpose of earning income or profit from such actions and includes every operation which forms a part of, or a step in, the process of earning income or profit from such group of actions. The actions ordinarily include, but are not limited to, the employment of business assets, the receipt of money, property, or other items of value and the incurring or payment of expenses. Notwithstanding any other provision of this paragraph, a holder of an ownership interest in a qualified investment company as defined in RSA 77-A:1, XXI, shall not be deemed to be carrying on any business activity within this state due solely to its holding an ownership interest in such qualified investment company.
XIII. "Combined net income" means the revenues less expenses as would be determinable under the provisions of the Internal Revenue Code as defined in RSA 77-A:1, XX and applied within the concepts of RSA 77-A for all business organizations conducting a unitary business regardless of whether such business organizations are required to file a federal income tax return.
XIV. "Unitary business" means one or more related business organizations engaged in business activity both within and without this state among which there exists a unity of ownership, operation, and use; or an interdependence in their functions.
XV. " Water's edge combined group " means a group of business organizations as defined in RSA 77-A:1, I operating a unitary business, except for overseas business organizations, as defined in paragraph XIX; provided, however, 80/20 business organizations shall only be excluded from the definition of "water's edge combined group" if the following criteria are met:
(a) The taxpayer certifies that transactions conducted between such business organizations and other members of the group are on a comparable basis to transactions between other business organizations owned or controlled by the taxpayer and any members of the water's edge combined group; and
(b) The taxpayer agrees to report to the commissioner any adjustments as finally determined by the United States Internal Revenue Service with respect to such transactions between any related business organizations as may have a bearing on the comparability of transactions referred to in subparagraph (a). These adjustments shall be made to the 80/20 business organizations so that a comparable basis shall be maintained for New Hampshire tax purposes. Such report shall be made in the manner and within the time limits as provided in RSA 77-A:10. Nothing in this paragraph shall exclude from taxation any business organization carrying on business activity within the state.
XVI. "Water's edge method" means the determination of taxable business profits for a group of business organizations conducting a unitary business by adding their combined net income, the additions and deductions provided in RSA 77-A:4 for the members of the group, and apportioning the result as provided in RSA 77-A:3.
XVII. " Foreign dividends " as used in RSA 77-A:3, II means dividends from overseas business organizations. For purposes of RSA 77-A:3, II(b), actual distributions from partnerships, limited liability companies, and "S" corporations are dividends for purposes of this definition.
XVIII. " Foreign property, payroll and sales " as used in RSA 77-A:3, II means the property, payroll and sales data of overseas business organizations, and which have paid dividends to a member of the water's edge combined group.

[Paragraph XVIII-a effective January 1, 2022 unless 2019, 346:426-429 are rescinded by a majority vote of the committee established in RSA 77-A:23-a.]


XVIII-a. " Foreign sales " as used in RSA 77-A:3, II means the sales data of overseas business organizations which have paid dividends to a member of the water's edge combined group.
XIX. " Overseas business organizations " means foreign incorporated business organizations and business organizations with 80 percent or more of the average of their payroll and property assignable to a location outside the 50 states and the District of Columbia.
XX. "United States Internal Revenue Code" means:
(a) The United States Internal Revenue Code without the rules, regulations, forms, and procedures of the United States Internal Revenue Service. The rules, regulations, forms and procedures of the United States Internal Revenue Service may, however, be used by the commissioner of revenue administration in formulating rules for adoption under RSA 541-A. This definition shall be operative unless and until a specific statutory exception to its adoption is provided in this chapter, or until the application of one of its provisions is held to violate the New Hampshire constitution.
(b) For all tax years beginning before January 1, 1987, the United States Internal Revenue Code (1954) as amended.
(c) For all tax years beginning after December 31, 1986, and tax years ending before January 1, 1988, the United States Internal Revenue Code of 1986 in effect on December 22, 1987.
(d) For all tax years beginning after December 31, 1987, and tax years ending before January 1, 1989, the United States Internal Revenue Code of 1986 in effect on November 10, 1988.
(e) For all tax years beginning after December 31, 1988, and tax years ending before January 1, 1991, the United States Internal Revenue Code of 1986 in effect on December 19, 1989.
(f) For all tax years beginning after December 31, 1990, and tax years ending before January 1, 1993, the United States Internal Revenue Code of 1986 in effect on November 5, 1990.
(g) For all tax years beginning after December 31, 1992, and tax years ending before January 1, 1995, the United States Internal Revenue Code of 1986, in effect on August 10, 1993.
(h) For all tax years beginning after December 31, 1994, and tax years ending before January 1, 1997, the United States Internal Revenue Code of 1986, in effect on December 31, 1994.
(i) For all tax years beginning after December 31, 1996, the United States Internal Revenue Code of 1986, in effect on December 31, 1996.
(j) For all tax years beginning after January 1, 1997, the United States Internal Revenue Code of 1986 in effect on December 31, 1997.
(k) For all tax years beginning after January 1, 1998, the United States Internal Revenue Code of 1986 in effect on December 31, 1998.
(l) For all tax years beginning after January 1, 2000, the United States Internal Revenue Code of 1986 in effect on December 31, 2000.
(m) For all taxable periods beginning on or after January 1, 2017, the United States Internal Revenue Code of 1986 in effect on December 31, 2015, subject to RSA 77-A:3-b.
(n) For all taxable periods beginning on or after January 1, 2018, the United States Internal Revenue Code of 1986 in effect on December 31, 2016, subject to RSA 77-A:3-b.
(o) For all taxable periods beginning on or after January 1, 2020, the United States Internal Revenue Code of 1986 in effect on December 31, 2018, subject to RSA 77-A:3-b.
XXI. (a) " Qualified investment company " means:
(1) A regulated investment company as defined in section 851 of the United States Internal Revenue Code as defined in RSA 77-A:1, XX;
(2) An organization that is an investment company under the Investment Company Act of 1940 as amended;
(3) An organization that would be an investment company under the Investment Company Act of 1940, as amended, but for the exception from investment company status provided by section 3(c)(1) or 3(c)(7) of said Investment Company Act; or
(4) A qualified community development entity as defined in section 45D of the United States Internal Revenue Code, which entity is owned, controlled, or managed, directly or indirectly, by the business finance authority of the state of New Hampshire.
(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.
XXII. "Compensation", for the purposes of RSA 77-A:5, VII, means all wages, salaries, fees, bonuses, commissions, or other items, including the following employee benefits: health, life and disability insurance and pensions, profit sharing and retirement benefits.
XXIII. "Eligible employee" means any individual employed by a business organization who, as of the last day of the applicable tax year:
(a) Has been employed by such business organization for at least 6 consecutive months;
(b) Has not been an eligible employee of such business organization or a substantially similar predecessor business organization for any prior taxable year; and
(c) Performs all but an incidental portion of services at a location or locations within the state. For the first taxable year in which the job creation tax credit allowed under RSA 77-A:5, VII, is effective, no employees employed on the first day of such taxable year shall be treated as eligible employees of such business organization for such first taxable year or any succeeding taxable year. For purposes of this paragraph, the commissioner is authorized to adopt rules pursuant to RSA 541-A to define the terms "substantially similar predecessor business organization" and "incidental portion of services."
XXIII-a. " Limited liability company " means a limited liability company formed under RSA 304-C or a foreign limited liability company as defined in RSA 304-C:9. In the case of a limited liability company required to make and file a United States partnership return of income, the provisions of this chapter shall be applied as though the limited liability company were a partnership and its members were partners.
XXIV, XXV. [Repealed.]
XXVI-XXIX. [Repealed.]
XXX. (a) " Qualified regenerative manufacturing company " means any business organization which meets each of the following requirements at all times during the entire taxable year:
(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.

Source. 1970, 5:1. 1971, 515:1, 2, 5. 1973, 544:11, VII; 579:2, 3. 1975, 503:2-4. 1977, 588:28. 1979, 446:1. 1981, 445:1-3. 1982, 42:91. 1983, 318:1, 2; 444:1. 1985, 414:6-9. 1986, 153:2, 3, 8. 1987, 407:1-4. 1988, 23:6. 1989, 50:15. 1991, 67:9-11; 354:6; 362:1. 1993, 313:9, 10; 350:5-7. 1994, 178:1; 326:4. 1995, 45:3. 1996, 154:1. 1997, 189:3. 1998, 105:2; 163:3, 4, 8, I. 1999, 163:2. 2001, 158:72. 2004, 143:2, 3, 8, III. 2007, 263:127. 2008, 2:1, 2. 2011, 181:2, eff. June 14, 2011. 2012, 232:4, eff. Jan. 1, 2013. 2016, 295:1, 6, eff. June 21, 2016. 2017, 156:229, eff. June 28, 2017; 257:49, eff. Oct. 1, 2017. 2018, 157:2, 4, eff. July 29, 2018. 2019, 346:251, eff. July 1, 2019; 346:429. 2022, 241:1, eff. July 1, 2022.

Section 77-A:2

    77-A:2 Imposition of Tax. –
I. For all taxable periods ending on or after December 31, 2019, a tax is imposed at the rate of 7.7 percent upon the taxable business profits of every business organization.
II. For all taxable periods ending on or after December 31, 2022, a tax is imposed at the rate of 7.6 percent upon the taxable business profits of every business organization.
III. For all taxable periods ending on or after December 31, 2023, a tax is imposed at the rate of 7.5 percent upon the taxable business profits of every business organization.

Source. 1970, 5:1. 1971, 515:14. 1977, 593:1. 1993, 350:8, 9. 1999, 17:19. 2001, 158:19, eff. July 1, 2001. 2015, 274:23, eff. Jan. 1, 2016. 2017, 156:213, eff. Jan. 1, 2019. 2019, 346:200, eff. July 1, 2019. 2021, 91:110, eff. June 25, 2021. 2022, 189:1, eff. June 17, 2022.

Section 77-A:2-a

    77-A:2-a Repealed by 1982, 42:70, eff. July 1, 1982. –

Section 77-A:2-b

    77-A:2-b Conditions for Employment of Only Water's Edge Combination. –
I. The commissioner shall determine liability for any business organization subject to the tax imposed under RSA 77-A:2 for the elements of both tax base and apportionment by the water's edge method except as provided in paragraph II.
II. The commissioner shall not be compelled to apply the water's edge method if the taxpayer fails to comply with the rules adopted by the department of revenue administration or the procedural requirements of RSA 77-A.

Source. 1986, 153:4, eff. July 1, 1986.

Section 77-A:2-c

    77-A:2-c Repealed by 1998, 163:8, eff. July 1, 1998. –

Section 77-A:3


[RSA 77-A:3 effective January 1, 2022 unless 2019, 346:426-429 are rescinded by majority vote of the committee established in RSA 77-A:23-a; see also RSA 77-A:3 set out above.]
    77-A:3 Apportionment. –
I. A business organization which derives gross business profits from business activity both within and without this state, and which is subject to a net income tax, a franchise tax measured by net income, or a capital stock tax in another state or is subject to the jurisdiction of another state to impose a net income tax or capital stock tax upon it, whether or not such tax is actually imposed, shall apportion its gross business profits so as to allocate to this state a fair and equitable proportion of such business profits. Except as provided in this section, such apportionment shall be made in the following manner:
(a) For taxable periods ending before December 31, 2022:
(1) The business organization's gross business profits shall be apportioned on the basis of the following 3 factors:
(A) The percentage of value of the total real and tangible personal property owned, rented and employed by the business organization everywhere as is owned, rented and employed by it in the operation of its business in this state. Property owned by the business organization shall be valued at its original cost. Property rented by the business organization shall be valued at 8 times the net annual rental rate. Net annual rental rate is the annual rental rate paid by the business organization less any annual rental rate received by the business organization from subrentals.
(B) The percentage of total compensation paid by the business organization to employees everywhere as is paid by the business organization to employees for services rendered within this state. Such compensation is deemed to be disbursed for services in this state if the service is performed entirely within this state, or if the service is performed both within and without this state and the service performed without this state is incidental to the service within this state, or some of the service is performed in this state and (i) the base of operations or, if there is no base of operations, the place from which the service is directed or controlled is in this state, or (ii) the base of operations or the place from which the service is directed or controlled is not in any state in which some part of the service is performed, but the individual performing such service resides within this state.
(C) The percentage of the total sales, including charges for services, made by the business organization everywhere as is made by it within this state:
(i) Sales of tangible personal property are made in this state if the property is delivered or shipped to a purchaser, other than the United States government, within this state regardless of f.o.b. point or other conditions of sale, or the property is shipped from an office, store, warehouse, factory or other place of storage in this state and the purchaser is the United States government, or the business organization is not taxable in the state of the purchaser.
(ii) Sales other than sales of tangible personal property are in this state if the business organization's market for the sales is in this state, as follows:
1. In the case of sale, rental, lease, or license of real property, if and to the extent the property is located in this state;
2. In the case of rental, lease, or license of tangible personal property, if and to the extent the property is located in this state;
3. In the case of sale of a service, if and to the extent the service is delivered to a location in this state;
4. In the case of sale, rental, lease, or license of intangible property, if and to the extent the property is used in this state;
5. In the case of interest income, if and to the extent the debtor or encumbered property is located in this state;
6. In the case of dividend income, if and to the extent the business organization's commercial domicile is in this state; and
7. In the case of other income, if and to the extent the income is derived from sources in this state.
(iii) In the case of sales other than sales of tangible personal property, if the state or states of assignment cannot be determined, the state or states of assignment shall be reasonably approximated.
(iv) In the case of sales other than sales of tangible personal property, if the taxpayer is not taxable in a state to which a sale is assigned, or if the state of assignment cannot be determined or reasonably approximated, such sale shall be excluded from the denominator of the sales factor.
(2) A fraction, the numerator of which shall be the property factor in subparagraph I(a)(1)(A) plus the compensation factor in subparagraph I(a)(1)(B) plus 2 multiplied by the sales factor in subparagraph I(a)(1)(C) and the denominator of which is 4, shall be applied to the total gross business profits (less foreign dividends) of the business organization to ascertain its gross business profits in this state.
(b) For taxable periods ending on or after December 31, 2022, the business organization's gross business profits shall be apportioned by multiplying the total gross business profits (less foreign dividends) of the business organization by the sales factor in subparagraph I(a)(1)(C).
II. (a) If the applicable method of apportionment in paragraph I does not fairly represent the business organization's business activity in this state, the business organization may petition for, or the commissioner may require, in respect to all or any part of the business organization's business activity, if reasonable, the employment of any other method to effect an equitable apportionment of the business organization's gross business profits.
(b) For foreign dividends from unitary sources, the following formula shall be used to modify factors relating to included dividends:
(1) Determine a percentage for each dividend payor consisting of dividends paid divided by taxable income which has been computed using United States standards.
(2) Apply this percentage to the dividend payor's foreign property, payroll, and sales for taxable periods ending before December 31, 2022, or to the dividend payor's foreign sales for taxable periods ending on or after December 31, 2022.
(3) Sum the results in subparagraph (2) for all dividend payors.
(4) Add the result in subparagraph (3) to the denominators of the combined water's edge group. The numerator will remain the New Hampshire numerator.
(5) Apply the resulting percentage to the foreign dividends.
(6) Add this amount to the amount of New Hampshire taxable business profits computed pursuant to RSA 77-A:3, I.
III. When 2 or more related business organizations are engaged in a unitary business, as defined in RSA 77-A:1, XIV, a part of which is conducted in this state by one or more members of the group, the income attributable to this state shall be determined by means of the applicable combined apportionment factors of the unitary business group in accordance with paragraphs I and II.
IV. The business organization is entitled to a hearing by the commissioner on request in connection with any change in its apportionment procedure and has the right of appeal from the commissioner's determination as provided in RSA 21-J:28-b.

Source. 1970, 5:1. 1971, 515:3. 1973, 544:9. 1979, 446:2, 3. 1981, 445:4. 1986, 153:5. 1991, 163:16; 354:7, 16. 1993, 350:11, 12. 1999, 346:2, eff. July 1, 1999 at 12:01 a.m. 2019, 342:1, eff. Jan. 1, 2021; 346:203, eff. Jan. 1, 2020; 346:424, eff. Jan. 1, 2021; 346:426.

Section 77-A:3-a

    77-A:3-a Expense Deductions. – In determining gross business profits before net operating loss and special deductions, a business organization shall calculate expense deductions as permitted under Section 179 of the Internal Revenue Code as provided in RSA 77-A:1, XX, except that for property placed in service on or after January 1, 2018, a business organization shall calculate expense deductions not to exceed $500,000.

Source. 2012, 279:10, eff. June 21, 2012. 2016, 295:4, eff. Jan. 1, 2017. 2017, 156:218, eff. Jan. 1, 2018.

Section 77-A:3-b

    77-A:3-b Adjustments; Internal Revenue Code Provisions. –
In determining gross business profits for any period, before net operating loss and special deductions, a business organization shall apply the provisions of the United States Internal Revenue Code consistent with the provisions of this chapter, with the following adjustments:
I. The United States Internal Revenue Code shall be applied without section 168(k) of such code.
II. [Repealed.]
III. The United States Internal Revenue Code shall be applied without section 181 of such code.
IV. Section 179 of the Internal Revenue Code shall be applied as provided in RSA 77-A:3-a.

Source. 2016, 295:2, eff. June 21, 2016. 2019, 346:205, eff. Jan. 1, 2020.

Section 77-A:3-c

    77-A:3-c Clarification of Tax Treatment of Paycheck Protection Program (PPP) Loans. –
In determining gross business profits for any period, before net operating loss and special deductions, notwithstanding any other provision of law, a business organization shall apply the provisions of the United States Internal Revenue Code consistent with the following adjustments:
I. No amount shall be included in the gross business income of the eligible recipient by reason of forgiveness of indebtedness issued or created under the federal Paycheck Protection Program (PPP) which was first established under the federal Coronavirus Aid, Relief, and Economic Security Act (P.L. 116-136, enacted March 3, 2020) or issued or created under the federal PPP Second Draw Loan Program established under the federal Consolidated Appropriations Act, 2021 (P.L. 116-260, enacted December 27, 2020).
II. No deduction shall be denied, no tax attribute shall be reduced, and no basis increase shall be denied, by reason of the exclusion from gross business income provided by paragraph I.
III. This section shall apply to taxable years ending after March 3, 2020, corresponding with the date of the enactment of the federal Coronavirus Aid, Relief, and Economic Security Act.

Source. 2021, 74:1, eff. June 10, 2021.

Section 77-A:3-d

    77-A:3-d Treatment of Water and Sewerage Disposal Utilities. –
In determining gross business profits, a business organization shall apply section 118 of the United States Internal Revenue Code consistent with the following adjustments:
I. The term " contribution to the capital of the taxpayer " includes any amount of money or other property received from any person, whether or not a shareholder, by a regulated public utility which provides water or sewerage disposal services if:
(a) Such amount is:
(1) A contribution in aid of construction; or
(2) A contribution to the capital of such utility by a governmental entity providing for the protection, preservation, or enhancement of drinking water or sewerage disposal services;
(b) In the case of a contribution in aid of construction which is property other than water or sewerage disposal facilities, such amount meets the requirements of the expenditure rule of paragraph II; and
(c) Such amount, or any property acquired or constructed with such amount, is not included in the taxpayer's rate base for ratemaking purposes.
II. An amount meets the requirements of subparagraph I(b) if:
(a) An amount equal to such amount is expended for the acquisition or construction of tangible property described in United States Internal Revenue Code section 1231(b):
(1) Which is the property for which the contribution was made or is of the same type as such property; and
(2) Which is used predominantly in the trade or business of furnishing water or sewerage disposal services;
(b) The expenditure referred to in subparagraph (a) occurs before the end of the second taxable year after the year in which such amount was received; and
(c) Accurate records are kept of the amounts contributed and expenditures made, the expenditures to which contributions are allocated, and the year in which the contributions and expenditures are received and made.
III. For purposes of this section:
(a) "Contribution in aid of construction" shall mean as the term is defined by the United States Department of the Treasury's Treasury Regulations 1.118-2 (2001), except that such term shall not include amounts paid as service charges for starting or stopping services.
(b) " Predominantly " means 80 percent or more.
(c) "Regulated public utility" has the meaning given such term by Internal Revenue Code section 7701(a)(33), except that such term shall not include any utility which is not required to provide water or sewerage disposal services to members of the general public in its service area.
IV. Notwithstanding any other provisions of law, no deduction or credit shall be allowed for, or by reason of, any expenditure which constitutes a contribution in aid of construction to which this section applies. The adjusted basis of any property acquired with contributions in aid of construction to which this section applies shall be zero.

Source. 2022, 12:4, eff. Apr. 11, 2022.

Section 77-A:4

    77-A:4 Additions and Deductions. –
The following adjustments shall be made to gross business profits in determining taxable business profits:

[Paragraph I repealed by 2021, 91:99, IV effective January 1, 2027.]


I. In the case of a business organization which is subject to taxation under RSA 77, a deduction of such amount of gross business profits as is attributable to income which is taxable or is specifically exempted from taxation under RSA 77.
II. A deduction of such amount of gross business profits as is attributable to income derived from interest on notes, bonds or other securities of the United States.
III. (a) In the case of a proprietorship, partnership, or limited liability company filing a business profits tax return as a proprietorship or partnership, a deduction equal to a fair and reasonable compensation for the actual personal services of a natural person who is a proprietor, partner, or member provided to the business organization; provided, however, that the amount of such deduction shall not reduce such business organization's taxable business profits to less than zero. The purpose of this paragraph is to permit a deduction from gross business profits of such a proprietorship, partnership, or limited liability company of all amounts that are fairly attributable to the actual personal services of the proprietor, partner, or member. Such amounts shall not exceed the amount reported as earned income on the federal income tax returns of the proprietor, partner, or member, but may also include an amount not to exceed net rental income as compensation for operating rental property, and an amount not to exceed 15 percent of the gross selling price as commissions on the sale of business assets.
(b) Subject to the provisions of subparagraph (c) which establishes a record-keeping safe harbor, the method of determining the amount of the deduction available to the business organization allowed under this paragraph shall be by using the standards set forth in section 162(a)(1) of the United States Internal Revenue Code, as it may be amended from time to time, and the Treasury Regulations, administrative rulings, and judicial cases issued thereunder. The business organization shall keep such records as may be necessary to determine that the deduction is reasonable under these standards.
(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 as total compensation for the tax year;
(d)(1) In this paragraph, " record-keeping safe harbor " means that amount of compensation for personal services claimed by a business organization which does not need to be substantiated by any evidence, records, or legal or regulatory authority, except as provided in subparagraph (e).
(2) Notwithstanding subparagraph III(d)(1), the record-keeping safe harbor shall not be relevant or admissible for any purpose in determining whether a compensation deduction claimed in an amount in excess of any such record-keeping safe harbor is fair and reasonable.
(e) A business organization or group of related business organizations may elect the record-keeping safe harbor option in subparagraph III(c) without a redetermination of the reasonableness of the deduction by the commissioner. Any such deduction claimed by the business organization or group of related business organizations shall not be subject to challenge; provided, that upon request, the business organization or group of related business organizations shall be required to substantiate that the proprietor or at least one partner or member performed actual personal services for the business organization or group of related business organizations.
(f) Related business organizations electing not to substantiate the extent of the actual personal services of their proprietors, partners, and members, shall be limited to the record-keeping safe harbor deduction, less any owners' compensation taken on the federal tax returns of corporate members of the group, allocated among the related business organizations. For the purposes of RSA 77-A:4, III, " related business organizations " are unitary business organizations and business organizations that would qualify as unitary but for the fact that they conduct business only within the state.
(g) A business organization claiming a deduction under this paragraph shall bear the burden of proving that all proprietors, partners, or members for whom a deduction is being claimed provided actual personal services to the business organization at any time during the taxable period. Once a business organization has satisfied this burden of proof, the amount claimed as a deduction shall be presumed to be reasonable, unless the commissioner proves by a preponderance of the evidence that the deduction claimed by the business organization is clearly unreasonable.
IV. [Repealed.]
V. [Repealed.]
VI. [Repealed.]
VII. In the case of a business organization which takes any deduction for a net income tax, a franchise tax measured by net income, or a capital stock tax assessed by any state or political subdivision, an addition to gross business profits for the amount of all such deductions.
VIII. In the case of a corporation, having adopted a plan of liquidation subsequent to June 30, 1981, which has a nonrecognized gain as a result of the application of the United States Internal Revenue Code (1954) section 337, as amended, or meets the exception requirements allowing the federal nonrecognition provisions of section 337 as provided in section 633 of the Tax Reform Act of 1986, an addition to gross business profits for the amount of such gain.
IX. In the case of a business organization required to adjust a portion of its wages under section 280C of the United States Internal Revenue Code as defined in RSA 77-A:1, XX, a deduction from gross business profits in the amount of such adjustment.
X. In the case of a business organization which excludes any portion of its gross business profits pursuant to federal constitutional law, an addition to gross business profits for the amount of any deducted expenses related to such excluded portion.
XI. A deduction of such amount of gross business profits as is attributable to foreign dividend gross-up as determined in accordance with section 78 of the United States Internal Revenue Code as defined in RSA 77-A:1, XX.
XII. In the case of a business organization which makes qualified charitable contributions as defined in RSA 77-A:1, IX, or qualified research contributions as defined in RSA 77-A:1, X, the gross business profits of the organization shall be adjusted by:
(a) Adding to gross business profits the amount deducted under section 170 of the United States Internal Revenue Code as defined in RSA 77-A:1, XX in arriving at federal taxable income; and
(b) Deducting from gross business profits an amount equal to the sum of the taxpayer's basis in the contributed property plus 50 percent of the unrealized appreciation, or twice the basis of the property, whichever is less.
XIII. A deduction for the amount of the net operating loss carryover determined under section 172 of the United States Internal Revenue Code apportioned in the year incurred according to RSA 77-A:3. A net operating loss shall only be apportioned in the year incurred 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 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.
XIV. (a) In the case of a business organization where an ownership interest in the business organization is sold or exchanged and the transaction, for federal income tax purposes results in an increase in the basis of the assets for one or more of the parties to the transaction, the business organization shall:
(1) Add to the gross business profits of the business organization, for each taxable period, an amount equal to the annual depreciation or amortization attributable to the increase in the basis of the assets recognized by the parties to the transaction for federal income tax purposes; and
(2) Calculate the gain or loss on the sale or other disposition of an asset without regard to the basis increase recognized by any party to the transaction for federal income tax purposes, from the sale or exchange of the ownership interest in the business organization.
(b) A business organization may, for a particular sale or exchange, make an irrevocable election on a timely filed return including any extension period, to recognize the basis increase of the assets for one or more of the parties to the transaction for federal income tax purposes. Such business organization for the purposes of the business profits tax shall:
(1) Be required to make an addition to gross business profits of the business organization equal to the net increase in the basis of all assets transferred or sold in the tax period in which the sale or exchange of the ownership interest occurs;
(2) Be allowed a deduction against its gross business profits for annual depreciation or amortization attributable to the increase in the basis of the assets recognized by the parties to the transaction for federal income tax purposes; and
(3) Calculate the gain or loss on the sale or other disposition of an asset with regard to the basis increase recognized by any party to the transaction for federal income tax purposes, from the sale or exchange of the ownership interest in the business organization.
XV. In the case of a business organization that is a holder of an ownership interest in a qualified investment company as defined in RSA 77-A:1, XXI, an addition to gross business profits of an amount equal to the holder's proportional share of profits of the qualified investment company, computed as if the qualified investment company were a business organization subject to tax under RSA 77-A. No portion of any actual distributions made to such holder by such qualified investment company that would otherwise be part of taxable business profits shall be included in such holder's gross business profits.
XVI. In the case of a business organization that receives assistance payments under 12 U.S.C. section 1823, a deduction from gross business profits of an amount equal to the sum of such assistance.
XVII, XVIII. [Repealed.]
XIX. A deduction of such amount of gross business profits as is attributable to global intangible low-taxed income under section 951A of the United States Internal Revenue Code as defined in RSA 77-A:1, XX, as determined in accordance with section 250(a) of the United States Internal Revenue Code as defined in RSA 77-A:1, XX.

Source. 1970, 5:1. 1971, 360:1; 515:4, 15. 1972, 63:25. 1973, 403:1; 544:9. 1975, 439:37; 503:1. 1977, 593:2. 1981, 445:5-7. 1983, 318:3; 444:2. 1987, 407:1, 5, 6. 1988, 199:1, 2. 1989, 168:2. 1991, 67:12; 354:8. 1992, 13:6. 1993, 350:13, 14. 1998, 105:3; 163:5. 2002, 211:1. 2003, 203:1. 2004, 143:4, 8, IV. 2007, 146:1, I-III. 2010, 324:2. 2011, 207:2, eff. June 25, 2011; 224:363, eff. Jan. 1, 2013. 2012, 71:1, eff. May 23, 2012. 2013, 71:1, eff. July 1, 2013. 2016, 300:1, eff. June 21, 2016. 2019, 346:204, eff. Jan. 1, 2020. 2022, 241:2, eff. July 1, 2022.

Section 77-A:4-a

    77-A:4-a Special Rule for "Safe Harbor" and Other Similar Leases. – For the purpose of preserving income lost through federal changes to the United States Internal Revenue Code (1954), as amended, on leasing transactions, the commissioner shall adopt rules, pursuant to RSA 541-A, relative to deductions and additions to gross business profits for business organizations involved in leasing transactions known as "safe harbor" leases under section 168(f)(8) of the United States Internal Revenue Code (1954), as amended, or other similar leasing transactions.

Source. 1983, 318:4, eff. June 30, 1983.

Section 77-A:4-b

    77-A:4-b Special Rule for Exchanges of Like-Kind Property Under Internal Revenue Code Section 1031. –
I. In the case of a qualified like-kind exchange under Internal Revenue Code section 1031, in which a business organization uses a single member limited liability company, revocable trust, or other entity disregarded for federal income tax purposes as the recipient of replacement property, the recipient entity shall take the basis of the relinquished property as held by the parent business organization, prior to the exchange, as computed for federal income tax purposes.
II. The recipient of the replacement property, for all other purposes, and in keeping with the requirements of separate entity taxation under this chapter, shall be a business organization, as defined in RSA 77-A:1, I and subject to the provisions of RSA 77-A.

Source. 2010, 286:1, eff. July 8, 2010.

Section 77-A:4-c

    77-A:4-c Repealed by 2020, 37:4, V, eff. July 29, 2020. –

Section 77-A:5


[Introductory paragraph of paragraph XIII(b)(1) effective until January 1, 2022 unless 2019, 346:426-429 are rescinded by a majority vote of the committee established in RSA 77-A:23-a; see also introductory paragraph of paragraph XIII(b)(1) set out below.]
    77-A:5 Credits. –
The following credits are allowed against the tax due under this chapter:
I. Taxes paid pursuant to RSA 83-C, covering the period from July 1, 1983 through December 31, 1997, and taxes paid pursuant to RSA 83-B covering the period from January 1, 1983, through June 30, 1983;
II. [Repealed.]
III. Taxes paid pursuant to sections of RSA 400-A relating to taxation of insurance companies;
IV. [Repealed.]
V, VI. [Repealed.]
VII. There shall be allowed a job creation tax credit equal to 15 percent of the compensation, as defined in RSA 77-A:1, XXII, paid during the taxable period to eligible employees, as defined in RSA 77-A:1, XXIII, provided, however, that in no event shall the total number of eligible employees for which the tax credit is taken exceed the increase in the total number of employees from the previous tax period to the current tax period. In the event that the excess of (a) the total number of employees in New Hampshire on the last day of the current taxable period over (b) the total number of employees in New Hampshire on the last day of the previous tax period is less than the total number of eligible employees for the current taxable period, then the total amount of compensation for which a credit may be taken shall equal such excess multiplied by the average compensation of such eligible employees. Furthermore, the total credit allowed under this paragraph shall not exceed 5 percent of the tax due under this chapter before any credits under RSA 77-A:5 are taken into account. The job creation tax credit allowed under this paragraph shall take effect July 1, 1992, and shall apply to returns and taxes due on account of taxable periods ending on or after July 1, 1992, for a period of 5 years only. The job creation tax credit allowed under this paragraph shall not be allowed for taxable periods ending on or after July 1, 1997.
VIII, IX. [Repealed.]
X. Taxes paid pursuant to RSA 77-E. Such credit shall be applied in accordance with RSA 77-E:13. No amount of tax paid pursuant to RSA 77-E and used as a credit against the taxes due under RSA 400-A shall be allowed as a credit under this paragraph except as provided in RSA 400-A:34-a. Any unused portion of the credit allowed under this paragraph from taxable periods ending on or after December 31, 2014 may be carried forward and allowed against the tax due under this chapter for 10 taxable periods from the taxable period in which the tax was paid.
XI. The investment tax credit as computed in RSA 162-L:10.
XII. [Repealed.]
XIII. (a) There shall be allowed a research and development tax credit for qualified manufacturing research and development expenditures made or incurred during the fiscal year, as follows:
(1) The aggregate of tax credits issued by the commissioner to all taxpayers claiming the credit shall not exceed $7,000,000 for any fiscal year.
(2) Each credit shall be used to offset the taxpayer's tax liability within the subsequent 5 tax years. The amount of the credit shall be the lesser of:
(A) Ten percent of the excess of the qualified manufacturing research and development expenses for the taxable year over the base amount;
(B) The proportional share of the maximum aggregate credit amount allowed in subparagraph (1);
(C) $50,000.
(3) Taxpayers shall apply for the tax credit on forms provided by the commissioner and shall be accompanied by information or records required by the commissioner. Such application shall be filed no later than June 30 following the tax year during which research and development occurred.
(4) A determination on the final amount of the credit awarded by the commissioner to each taxpayer claiming the credit shall be made no later than September 30 of each year.
(5) Wages for which a credit is taken under this paragraph shall not also be eligible for a credit under RSA 162-N.
(b) For purposes of this paragraph:
(1) The term "qualified manufacturing research and development expenditures" shall mean solely any wages paid or incurred to an employee of the business organization for services rendered by such employee within this state within the meaning of RSA 77-A:3; I(b), provided that:
(1) The term " qualified manufacturing research and development expenditures " shall mean solely any wages paid or incurred to an employee of the business organization for services rendered by such employee within this state within the meaning of RSA 77-A:3, I(a)(1)(B), provided that:
(A) Such wages shall be treated as wages for qualified research expenses under section 41(b) of the United States Internal Revenue Code.
(B) Such services are undertaken for the purpose of discovering information which constitutes qualified research and development of a new or improved manufacturing process or business component of the business organization.
(C) The wages qualify and are reported as a credit by the business organization under section 41 of the United States Internal Revenue Code as defined in RSA 77-A:1, XX.
(D) The wages are reported by the business organization in the enterprise value tax base under RSA 77-E.
(2) "Base amount" shall mean the base amount of expenditure as defined under section 41 of the United States Internal Revenue Code as defined by RSA 77-A:1, XX, except that the minimum base amount may be 0.
(c) A unitary business or an enterprise consisting of one or more taxpayers under this chapter shall be considered a single taxpayer for purposes of claiming the credit under this paragraph.
XIV. The unused portion of any Coos county job creation tax credit awarded by the commissioner under RSA 77-E:3-c shall be available to apply to the business profits tax.
XV. The education tax credit as computed in RSA 77-G:4.
XVI. The tax credit computed under RSA 188-E:9-a for donations to regional career and technical education center programs, provided that the credit allowed for a taxpayer under this paragraph shall not exceed 25 percent of the tax due under this chapter for such taxpayer before any credits under RSA 77-A:5 are taken into account.

Source. 1970, 5:1. 1971, 515:16. 1975, 439:35. 1983, 326:4; 469:99. 1991, 334:4; 354:2, 9, 10. 1993, 49:13, I; 350:15, 16, 41, I-III. 1995, 188:5, II; 308:93, II. 1997, 347:3. 1998, 338:1. 2003, 301:3. 2007, 263:121, 123, II; 271:1, 6, I, eff. July 1, 2015. 2008, 172:2. 2011, 225:1, eff. July 1, 2014. 2012, 287:2, eff. June 27, 2012. 2013, 5:1, eff. May 20, 2013. 2014, 192:1, eff. July 1, 2014 at 12:01 a.m. 2015, 276:241, eff. July 1, 2017. 2019, 247:2, eff. July 1, 2019; 2019, 346:427. 2022, 16:1, eff. Apr. 11, 2022.

Section 77-A:5-a

    77-A:5-a Repealed by 2014, 28:2, eff. May 23, 2014. –

Section 77-A:5-b

    77-A:5-b Election and Reporting for Qualified Investment Companies. –
I. Business organizations shall file an election with the commissioner to be a qualified investment company with respect to any taxable period on a form prescribed by the commissioner at any time on or before the fifteenth day of the third month of such taxable period. Such an election shall be effective for the taxable period of the qualified investment company for which it is made and for all succeeding taxable periods until such election is terminated as provided in this section.
II. Every business organization electing treatment as a qualified investment company shall, with respect to each taxable period, file a report, in accordance with such rules or forms as the commissioner may prescribe, setting forth the following:
(a) The aggregate amounts of funds invested in the qualified investment company.
(b) The names, addresses, and federal taxpayer identification numbers of the holders of such qualified investment company and the amount, if any, of their proportional share of the income required to be included in such holder's New Hampshire tax return under RSA 77:4, V and RSA 77-A:4, XV.
(c) The name, address, and federal taxpayer identification number of the manager of such qualified investment company.
(d) The amount of the income received and expenses incurred by the qualified investment company for the tax period.
(e) Notwithstanding any other provision of this section, a qualified investment company shall be deemed to have satisfied the reporting requirements of this section if it files with the commissioner a copy of its federal income tax return, as filed with the Internal Revenue Service.
III. Such report or copy of the federal income tax return shall be filed at any time on or before 30 days following the filing of the federal income tax return with the Internal Revenue Service. Any qualified investment company which fails to timely file the report as required by this section shall pay a penalty equal to $100 for each day such report is not filed, unless an extension has been granted by the commissioner. In no event shall the monetary fine imposed by this paragraph exceed $5,000. A qualified investment company notified by the department that such report is overdue by more than 50 days shall have 30 days from the date of such notification to file the delinquent report. If the delinquent report is not filed within 30 days after notification, the commissioner shall disallow the business organization qualified investment company status for the tax periods for which a timely report is not filed.
IV. The qualified investment company shall be subject to the provisions of RSA 77-A:11 and RSA 77-E:10. The commissioner is authorized to audit and enforce such provisions with any of the powers granted under this chapter and RSA 77-E.
V. The election provided for in paragraph I may be terminated as follows:
(a) By revoking said election by consent of the majority of the members, partners, or shareholders of the qualified investment company, or by determination of the manager of the qualified investment company. Such revocation must be filed with the department on or before the fifteenth day of the third month of the taxable period to be effective for such period. Any revocation filed after the fifteenth day of the third month of the taxable period shall be effective for the following tax period; or
(b) Whenever the company ceases to satisfy the requirements for qualification as a qualified investment company as provided in RSA 77-A:1, XXI.

Source. 1998, 163:6. 2004, 143:5, eff. May 24, 2004.

Section 77-A:5-c

    77-A:5-c Election and Reporting for Qualified Regenerative Manufacturing Companies. –
I. Business organizations shall file an election with the commissioner to be a qualified regenerative manufacturing company with respect to any taxable period on a form prescribed by the commissioner at any time on or before the fifteenth day of the third month immediately following the end of such taxable period. Such an election shall be effective for the taxable period of the qualified regenerative manufacturing company for which it is made and for all succeeding taxable periods until such election is terminated as provided in this section.
II. The election to be a qualified regenerative manufacturing company shall expire for taxable periods beginning after December 31, 2027. No subsequent election may be made after the expiration of an election, with respect to either the business organization or the active regenerative manufacturing business conducted by such business organization or any successor business organization.
III. Every business organization electing treatment as a qualified regenerative manufacturing company shall, with respect to each taxable period, file a report, in accordance with such rules or forms as the commissioner may prescribe, setting forth the following:
(a) The names, addresses, and federal taxpayer identification numbers of the holders of any equity interests in such qualified regenerative manufacturing company.
(b) The name, address, and federal taxpayer identification number of the manager of such qualified regenerative manufacturing company.
(c) The amount of the income received and expenses incurred by the qualified regenerative manufacturing company for the tax period.
(d) Notwithstanding any other provision of this section, a qualified regenerative manufacturing company shall be deemed to have satisfied the reporting requirements of this section if it files with the commissioner a copy of its federal income tax return, as filed with the Internal Revenue Service.
IV. Such report or copy of the federal income tax return shall be filed at any time on or before 30 days following the filing of the federal income tax return with the Internal Revenue Service. Any qualified regenerative manufacturing company which fails to timely file the report as required by this section shall pay a penalty equal to $100 for each day such report is not filed, unless an extension has been granted by the commissioner. In no event shall the monetary fine imposed by this paragraph exceed $5,000. A qualified regenerative manufacturing company notified by the department that such report is overdue by more than 50 days shall have 30 days from the date of such notification to file the delinquent report.
V. The qualified regenerative manufacturing company shall be subject to the provisions of RSA 77-A:11 and RSA 77-E:10. The commissioner is authorized to audit and enforce such provisions with any of the powers granted under this chapter and RSA 77-E.
VI. The election provided for in paragraph I may be terminated as follows:
(a) By revoking said election by consent of the majority of the members, partners, or shareholders of the qualified regenerative manufacturing company, or by determination of the manager of the qualified regenerative manufacturing company. Such revocation must be filed with the department on or before the fifteenth day of the third month of the taxable period to be effective for such period. Any revocation filed after the fifteenth day of the third month of the taxable period shall be effective for the following tax period; or
(b) Whenever the company ceases to satisfy the requirements for qualification as a qualified regenerative manufacturing company as provided in RSA 77-A:1, XXX.
VII. Notwithstanding any provision of law to the contrary, the Advanced Regenerative Manufacturing Institute, Inc., a New Hampshire non-profit formed to advance the regenerative manufacturing industry and as of the effective date of this paragraph is operated out of Manchester, New Hampshire, is deemed a "qualified regenerative manufacturing company" as that term is defined in RSA 77-A:1, XXX, provided that it complies with the requirements of RSA 77-A:5-c, III.

Source. 2018, 157:6, eff. July 29, 2018.

Section 77-A:6

    77-A:6 Returns, Declarations, and Combined Reporting. –
I. Every business organization having gross business income in excess of $92,000 as defined by RSA 77-A:1, VI, during the taxable period, shall on or before the fifteenth day of the third month in the case of organizations required to file a United States partnership tax return, the fifteenth day of the fifth month in the case of organizations required to file a United States exempt organization tax return, and the fifteenth day of the fourth month in the case of all other business organizations, following expiration of its taxable period, make a return to the commissioner. For tax years beginning January 1, 2023, 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. The commissioner shall adopt rules, pursuant to RSA 541-A, relative to the form of such return and the data which it must contain for the correct computation of taxable business profits and gross business income attributable to this state and the tax assessed on it. All returns shall be signed by the taxpayer or by its authorized representative, subject to the pains and penalties of perjury.
I-a. Every business organization realizing a gain or loss on the sale or exchange of an interest in the business organization shall file a return for the taxable period, regardless of whether or not the business organization's gross business income is in excess of the threshold amount determined under paragraph I.
II. Every business organization shall in addition file a declaration of its estimated business profits tax for its subsequent taxable period; provided, however, if the estimated tax is less than $200, a declaration need not be filed; and provided further that a declaration shall be filed at the end of any quarter thereafter in which estimated tax exceeds $200. The declaration shall be filed when payments are due under RSA 77-A:7.
III. [Repealed.]
IV. A business organization which is part of a water's edge combined group and required to report under this chapter shall file a return containing the combined net income of the water's edge combined group and such other informational returns as the commissioner shall require by rules adopted under RSA 541-A. The commissioner is authorized to impose the tax as though the entire combined net income of the water's edge combined group was that of one business organization or the commissioner may adjust the tax or income in such other manner as the commissioner shall determine to be equitable if the commissioner determines it to be necessary in order to clearly reflect the net income earned by such organization from business done in this state. This provision shall not authorize the application of worldwide combined reporting except as provided in RSA 77-A:2-b, II.

Source. 1970, 5:1. 1971, 515:6. 1973, 544:9; 579:1, 4, 5. 1975, 166:1; 439:34, 36. 1977, 593:3, 4; 605:1. 1981, 128:17; 445:8, 568:65, I. 1986, 153:6. 1991, 163:43, IX. 1993, 202:1. 1996, 154:3. 2009, 144:273, eff. July 1, 2009. 2016, 66:1, eff. July 4, 2016. 2021, 24:5, eff. May 6, 2021; 199:1, eff. July 1, 2021.

Section 77-A:7

    77-A:7 Payments Due With Returns and With Estimates. –
I. (a) All business organizations required under RSA 77-A:6, II to make payments of estimated tax shall make such payments in installments as follows: 25 percent is due and payable on the fifteenth day of the fourth month of the subsequent taxable year; 25 percent is due and payable on the fifteenth day of the sixth month of the subsequent taxable year; 25 percent is due and payable on the fifteenth day of the ninth month of the subsequent taxable year; and 25 percent is due and payable on the fifteenth day of the twelfth month of the subsequent taxable year. Any business enterprise tax credit which may be applied under RSA 77-A:5, X may be applied to the estimated tax payments.
(b) If the return required by RSA 77-A:6, I shows an additional amount to be due, such additional amount is due and payable on the prescribed payment date. If such return shows an overpayment of the tax due, the commissioner shall refund or credit the overpayment to the taxpayer in accordance with RSA 21-J:28-a, except that:
(1) For taxable periods ending on or after December 31, 2022 a credit shall only be allowed in an amount up to 500 percent of the total tax liability for the taxable period and the remainder of the overpayment shall be refunded;
(2) For taxable periods ending on or after December 31, 2025 a credit shall only be allowed in an amount up to 250 percent of the total tax liability for the taxable period and the remainder of the overpayment shall be refunded; and
(3) For taxable periods ending on or after December 31, 2027 a credit shall only be allowed in an amount up to 100 percent of the total tax liability for the taxable period and the remainder of the overpayment shall be refunded.
II. [Repealed.]

Source. 1970, 5:1; 56:6. 1971, 515:8. 1973, 544:9. 1975, 439:34, VII. 1979, 446:4. 1988, 23:4. 1990, 3:71. 1991, 163:17. 1993, 350:18, eff. July 1, 1993. 2012, 253:1, eff. July 1, 2012. 2021, 91:115, eff. June 25, 2021.

Section 77-A:7-a

    77-A:7-a Repealed by 1991, 163:43, X, eff. May 27, 1991. –

Section 77-A:7-b

    77-A:7-b Repealed by 2021, 91:118, effective November 1, 2021. –

Section 77-A:8

    77-A:8 Additional Returns. – When the commissioner has reason to believe that a taxpayer has failed to file a return or to include any part of its gross business profits in a filed return, the commissioner may require the taxpayer to file a return or a supplementary return showing such additional information as the commissioner prescribes. Upon the receipt of the supplementary return, or if none is received within the time set by the commissioner, the commissioner may find and assess the amount due upon the information that is available. The making of such additional return does not relieve the taxpayer of any penalty for failure to make a correct original return or relieve it from liability for interest imposed under RSA 21-J:28 or any other additional charges imposed by the commissioner. This section shall not be construed to modify or extend the statute of limitations provided in RSA 21-J:29.

Source. 1970, 5:1. 1971, 515:9. 1973, 544:9. 1975, 439:30. 1991, 163:18, eff. May 27, 1991.

Section 77-A:9

    77-A:9 Extension of Time for Returns. – For good cause, the commissioner may extend the time within which a taxpayer is required to file a return, and if such return is filed during the period of extension no penalty may be imposed for failure to file the return at the time required by this chapter, but the taxpayer shall be liable for interest and late payment charges as prescribed in RSA 21-J:28, 32, or 33. Failure to file the return during the period of the extension shall void the extension.

Source. 1970, 5:1. 1971, 515:10. 1973, 544:9. 1981, 445:10; 465:4. 1982, 42:98. 1983, 441:4. 1985, 204:11. 1991, 163:19, eff. May 27, 1991.

Section 77-A:10

    77-A:10 Corrections. – Each taxpayer shall report to the commissioner of revenue administration any change in the amount of its gross business profits as finally determined by the United States Internal Revenue Service with respect to any previous year for which the taxpayer has made a return under this chapter. Such a report shall be made not later than 6 months after the taxpayer has received notice from the United States Internal Revenue Service that such change has finally been determined. Notwithstanding any other provision of law, a taxpayer reporting a correction pursuant to this section shall be given notice by the department within 6 months of the filing of the report that the return is being reviewed.

Source. 1970, 5:1. 1973, 544:9. 1991, 163:20, eff. May 27, 1991. 2013, 90:3, eff. Aug. 19, 2013.

Section 77-A:11

    77-A:11 Taxpayer Records. –
Every business organization shall:
I. Keep such records as may be necessary to determine the amount of its liability under this chapter and to determine whether the compensation claimed as a deduction under RSA 77-A:4, III is reasonable;
II. Preserve such records for the period of 3 years or until any litigation or prosecution hereunder is finally determined;
III. Make such records available for inspection by the commissioner or authorized agents, upon demand, at reasonable times during regular business hours. Whoever violates the provisions of this section shall be subject to the penalties imposed under RSA 21-J:39.
IV. Any taxpayer records obtained or inspected by the commissioner or his or her agents for the purpose of conducting an audit of the taxpayer's compliance or liability under this chapter shall be kept confidential and not disclosed for any purpose unless required by law.
V. In any judicial proceeding under this chapter, all taxpayer records and related pleadings shall remain sealed and not disclosed to any non-party to the proceeding for any purpose unless required by law.

Source. 1970, 5:1. 1973, 528:21; 544:9, 11, VIII. 1991, 163:21. 1996, 154:4. 2011, 207:5, eff. June 25, 2011. 2017, 254:1, eff. Sept. 16, 2017.

Section 77-A:12

    77-A:12 Repealed by 1991, 163:43, XI, eff. May 27, 1991. –

Section 77-A:13

    77-A:13 Repealed by 1991, 163:43, XII, eff. May 27, 1991. –

Section 77-A:14

    77-A:14 Repealed by 1991, 163:43, XIII, eff. May 27, 1991. –

Section 77-A:15

    77-A:15 Administration. –
I. The commissioner shall collect the taxes, interest, additions to tax and penalties imposed under this chapter. The commissioner shall determine the expense of administration of this chapter and shall certify and pay over to the state treasurer the amount of remaining balance of the funds collected under this chapter after the expenses of administration have been deducted.
II. The commissioner of revenue administration shall adopt rules, pursuant to RSA 541-A, relative to:
(a) The administration of the business profits tax; and
(b) The recovery of any tax, interest on tax, or penalties imposed by this chapter or by RSA 21-J.
III. The commissioner may institute actions in the name of the state to recover any tax, interest on tax, additions to tax or the penalties imposed by this chapter.
IV. In the collection of the tax imposed by this chapter, the commissioner may use all of the powers granted to tax collectors under RSA 80 for the collection of taxes, except that the tax imposed by this chapter shall not take precedence over prior recorded mortgages. The commissioner shall also have all of the duties imposed upon the tax collectors by RSA 80 that are applicable. The provisions of RSA 80:26 apply to the sale of land for the payment of taxes due under this chapter, and the state treasurer is authorized to purchase the land for the state. If the state purchases the land, the state treasurer shall certify the purchase to the governor, and the governor shall draw a warrant for the purchase price out of any money in the treasury not otherwise appropriated.
V, VI. [Repealed.]

Source. 1970, 5:1; 57:2, 5. 1973, 544:9, 11. 1975, 439:34, VIII. 1977, 118:1. 1979, 446:5. 1981, 128:18, 19; 445:12. 1991, 163:22, 43, XIV. 1996, 154:5, eff. July 1, 1996.

Section 77-A:16

    77-A:16 Repealed by 1977, 203:2, eff. Aug. 13, 1977. –

Section 77-A:17

    77-A:17 Repealed by 1991, 163:43, XV, eff. May 27, 1991. –

Section 77-A:18

    77-A:18 Certifications for Dissolution, Withdrawal and Good Standing. –
I. (a) No corporation and no limited liability company organized under any law of this state may transfer property to its shareholders pursuant to RSA 293-A:14.05(a) or to its members and managers pursuant to RSA 304-C:141 until all taxes, interest, and penalties imposed upon the corporation or limited liability company under this chapter have been fully paid and a certificate of dissolution shall have been obtained from the commissioner of revenue administration that no returns, tax, interest, or penalties for taxes administered by the department are due and unpaid.
(b) A corporation or limited liability company wishing to transfer property to its shareholders pursuant to RSA 293-A:14.05(a) or to its members or managers pursuant to RSA 304-C:141 shall submit a written request containing the complete corporate or limited liability company name and identification number and accompanied by a nonrefundable fee of $30 to the commissioner of revenue administration. This fee shall be deposited into the general fund. If, after reviewing the corporation's or limited liability company's records, the commissioner determines that no returns, tax, interest, or penalties for taxes administered by the department are due and unpaid, the commissioner shall prepare a certificate in accordance with subparagraph (a).
II. A business organization wishing to obtain a statement for withdrawal, in accordance with RSA 293-A:15.20(b)(6) or RSA 304-C:179, shall submit a written request containing the complete corporate or limited liability company name and identification number and accompanied by a nonrefundable fee of $30 to the commissioner of revenue administration. This fee shall be deposited into the general fund. If, after reviewing the business organization's records, the commissioner determines that no returns, tax, interest, or penalties for taxes administered by the department are due and unpaid, the commissioner shall prepare a statement for withdrawal for the purposes required under RSA 293-A:15.20(b)(6) or RSA 304-C:179.
III. A business organization wishing to obtain a statement that it is in good standing with the department of revenue administration shall submit a written request containing the complete corporate or limited liability company name and identification number and accompanied by a non-refundable fee of $30 to the commissioner of revenue administration. This fee shall be deposited into the general fund. If, after reviewing the business organization's records, the commissioner determines that no returns, tax, interest or penalties for taxes administered by the department are due and unpaid, the commissioner shall prepare a statement of good standing.

Source. 1970, 5:1. 1973, 544:9. 1989, 408:10. 1992, 255:2. 1993, 313:11, eff. July 1, 1993. 2012, 232:5, eff. Jan. 1, 2013.

Section 77-A:19

    77-A:19 Repealed by 1991, 163:43, XVI, eff. May 27, 1991. –

Section 77-A:20

    77-A:20 Repealed by 1981, 568:122, III, eff. July 1, 1984. –

Section 77-A:20-a

    77-A:20-a Distribution of Funds. –
I. The commissioner shall determine the additional amounts of revenue produced by an increase of 1.5 percent in the rate of tax imposed by RSA 77-A:2 for each fiscal year and shall certify such amounts to the state treasurer by October 1 of that year for deposit in the education trust fund established by RSA 198:39.
II. The commissioner shall make quarterly estimates of the amount of additional revenues that will be produced by the increase in tax rate for the next fiscal year and shall certify such amounts to the state treasurer for deposit in the education trust fund established by RSA 198:39. Such estimates shall be certified on June 1, September 1, December 1, and March 1 of each year.

Source. 1999, 17:20. 2001, 158:20, eff. July 1, 2001.

Section 77-A:21

    77-A:21 Severability. – If any provision of this chapter or the application thereof to any person or circumstance is held to be invalid, the invalidity shall not affect any other provision or the application of such provision to other persons or circumstances, and to this end the provisions of this chapter are severable.

Source. 1981, 445:13, eff. July 1, 1981.

Section 77-A:22

    77-A:22 Repealed by 2016, 153:2, eff. Nov. 1, 2016. –

Section 77-A:23

    77-A:23 Repealed by 2017, 106:2, eff. Nov. 1, 2018. –

Section 77-A:23-a

    77-A:23-a Repealed by 2019, 346:433 eff. Dec. 1, 2020. –

Section 77-A:23-b


[RSA 77-A:23-b repealed by 2022, 12:3, effective November 1, 2023.]
    77-A:23-b Commission on Worldwide Combined Reporting for Unitary Businesses Under the Business Profits Tax. –
There is established a commission to study the replacement of the water's edge method by the worldwide combined reporting method for reporting and apportionment of income under the business profits tax.
I. The members of the commission shall be as follows:
(a) Three members of the house of representatives, who shall be from the ways and means committee, appointed by the speaker of the house of representatives.
(b) One member of the senate, appointed by the president of the senate.
(c) Three members of the state's business community, one representing in-state domesticated businesses with less than 100 employees, one representing in-state domesticated businesses with more than 100 employees, and one representing out-of-state or foreign domesticated businesses, appointed by the president of the New Hampshire Business and Industry Association.
(d) The president of the New Hampshire Society of Certified Public Accountants, or designee.
(e) The commissioner of the department of revenue administration, or designee.
(f) The commissioner of the department of business and economic affairs, or designee.
(g) The attorney general, or designee.
(h) An attorney expert in transnational and New Hampshire business profit tax accounting issues, appointed by the president of the New Hampshire Bar Association.
II. Legislative members of the commission shall receive mileage at the legislative rate when attending to the duties of the commission.
III. The commission shall study the advantages and disadvantages for the state's economy and revenues of replacement of the current water's edge method by the worldwide combined reporting method for reporting and apportionment of income under the business profits tax. It shall consult with national experts in both methods, including economists, business associations, and tax experts.
IV. The members of the commission shall elect a chairperson from among the members. The first meeting shall be called by the first-named house member. The first meeting of the commission shall be held within 45 days of the effective date of this section. Six members of the commission shall constitute a quorum.
V. The commission shall report its preliminary findings on or before November 1, 2022 and issue a final report of its findings and any recommendations for proposed legislation on or before November 1, 2023, to the president of the senate, the speaker of the house of representatives, the senate clerk, the house clerk, the governor, and the state library.

Source. 2022, 12:2, eff. Apr. 11, 2022.