More business tax cuts

Jan 03, 2018

BY: Citizens Count

Thanks to strong tax revenues in 2017, New Hampshire business taxes will decrease in 2018.

The Legislature passed business tax cuts in 2016, but required revenue to meet certain benchmarks before the tax rates decrease.

In 2018 the Business Profits Tax will decrease from 8.2% to 7.9%. The Business Enterprise Tax will decrease from 0.72% to 0.675%.

Click here to learn more about the debate over business tax rates in New Hampshire.

Even deeper cuts?

If revenue stays on track, there are two more scheduled business tax cuts in 2019 and 2020.

Some legislators want to also add more business tax credits and exemptions. For example, Rep. Caleb Dyer is sponsoring a 2018 bill that would add a tax credit for payments made to employees for paternity and maternity leave.

Supporters of more tax cuts generally argue that New Hampshire has one of the heaviest tax burdens for businesses in the U.S.

Time to press the pause button?

Some legislators are concerned that business tax cuts have already gone too far.

Rep. Richard Ames is sponsoring a 2018 bill that would require tax revenue to exceed the change in the Consumer Price Index, plus one percent, before tax cuts take effect. 

In December some Republican senators also voted against a tax credit for donations to career and technical education centers, arguing it was fiscally prudent to press “pause” on the cuts. 

Do you have an opinion on business taxes in New Hampshire? Share your opinion in the comments below.

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