Important Changes To New Hampshire Business Profits Tax

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AAFCPAs would like to make clients aware, if you are subject to New Hampshire’s Business Profits tax, there are two significant 2022 legislative updates which address net operating losses and combined reporting.

Tax Information Release (TIR) No. 2022-003 modifies the calculation of the net operating loss (NOL) carryover deduction for tax years ending on or after December 31, 2022. Taxpayers may now utilize the apportioned NOL carryover as a deduction against apportioned taxable income (previously the apportioned NOL was only allowed as a deduction against pre-apportioned income).

House Bill (H.B.) 102 establishes a “Commission on Worldwide Combined Reporting for Unitary Businesses Under the Business Profits Tax.”  The intention of this commission is to study the ramifications of replacing New Hampshire’s current water’s edge method with a worldwide combined reporting regime. This could significantly change the way a worldwide unitary business calculates its New Hampshire tax liability.

These changes are an important consideration in any tax forecast or planning that include state effective rate calculations.

If you have any questions or need help managing your tax compliance, please contact Kelly Zack, MST at kzack@nullaafcpa.com, 774.512.4001; or your AAFCPAs Partner.


About the Author

Kelly Zack, MST

Kelly is a senior leader in AAFCPAs’ Commercial Tax practice. She advises individuals, partnerships, corporations, nonprofits, and trusts operating in multiple states and municipalities on opportunities to save tax dollars through advanced tax planning and risk mitigation. This includes the identification of all location-specific tax incentives and credits that could impact business entities and their owners. Kelly brings expertise in nexus analysis for income/franchise tax and sales and use taxes along with the analysis of state …