Bill Text: NH SB239 | 2016 | Regular Session | Chaptered

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Bill Title: Relative to application of the Internal Revenue Code to provisions of the business profits tax.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2016-06-22 - II. Remainder Effective 06/21/2016 [SB239 Detail]

Download: New_Hampshire-2016-SB239-Chaptered.html

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CHAPTER 295

SB 239-FN - FINAL VERSION

01/21/2016   0055s

02/04/2016   0311s

02/04/2016   0413s

11May2016... 1552h

06/01/2016   2067CofC

 

2016 SESSION

15-1029

10/03

 

SENATE BILL 239-FN

 

AN ACT relative to application of the Internal Revenue Code to provisions of the business profits tax.

 

SPONSORS: Sen. Bradley, Dist 3

 

COMMITTEE: Ways and Means

 

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AMENDED ANALYSIS

 

This bill updates the effective version of the United States Internal Revenue Code of 1986 applicable to the business profits tax, subject to certain adjustments.  The bill also requires the commissioner of revenue administration to report annually on changes to the Internal Revenue Code.

 

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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

 

01/21/2016   0055s

02/04/2016   0311s

02/04/2016   0413s

11May2016... 1552h

06/01/2016   2067CofC 15-1029

10/03

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Sixteen

 

AN ACT relative to application of the Internal Revenue Code to provisions of the business profits tax.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

295:1  New Subparagraph; Business Profits Tax; Definition; United States Internal Revenue Code.  Amend RSA 77-A:1, XX by inserting after subparagraph (l) the following new subparagraph:

(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.

295:2  New Section; Business Profits Tax; Adjustments; Internal Revenue Code.  Amend RSA 77-A by inserting after section 3-a the following new section:

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.  The United States Internal Revenue Code shall be applied without section 199 of such code.

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.

295:3  Applicability.  Section 2 of this act shall apply to taxable periods beginning on or after January 1, 2017.

295:4  Business Profits Tax; Section 179 Expense Deductions.  RSA 77-A:3-a is repealed and reenacted to read as follows:

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, 2017, a business organization shall calculate expense deductions not to exceed $100,000.

295:5  New Paragraph; Duties of the Commissioner of Revenue Administration; Report; Internal Revenue Code Changes.  Amend RSA 21-J:3 by inserting after paragraph XXXII the following new paragraph:

XXXIII.  File a report not later than March 31 of each year with the ways and means committees of the senate and the house of representatives informing the committees of any changes to the United States Internal Revenue Code, related Treasury Regulations, and administrative rulings, which would impact New Hampshire.

295:6  Repeal.  RSA 77-A:1, X(g), relative to a reference to the Internal Revenue Code, is repealed.

295:7  Effective Date.

I.  Section 4 of this act shall take effect January 1, 2017.

II.  The remainder of this act shall take effect upon its passage.

Approved: June 21, 2016

Effective Date: I. Section 4 shall take effect January 1, 2017

    II. Remainder shall take effect June 21, 2016