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New Hampshire Department of Revenue Guidance

New Hampshire Department of Revenue Guidance

January 27, 2021

On the state taxability of COVID-19 financial relief

New Hampshire Department of Revenue Guidance

In case you missed it, the Department of Revenue has issued official guidance on the state taxability of COVID-19 financial relief. Per the guidance, taxpayers who received COVID-19 relief funds that file a BPT return: 

  • If funds were from the State of New Hampshire’s federal CARES Act funds, include as income for BPT purposes.
  • If funds were from a state-level relief loan, do not include as income for BPT purposes, unless the loan is forgiven or discharged.
  • Deductions for operating costs can continue, even if paid for with state-level relief funds. Funds that are not spent on deductible business expenses are subject to taxation. Examples of these types of expenses include distributions made to owners or shareholders, payment of personal expenses of owners, or certain disallowed entertainment and meal expenses. 

For the complete guidance from the New Hampshire Department of Revenue, please click here.

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