CONCORD (June 29, 2017): The National Federation of Independent Business is applauding Governor Sununu for his leadership in formulating the 18-19 fiscal year budget that includes a reduction to both the Business Enterprise Tax (BET) and the Business Profits Tax (BFT).
Governor Sununu campaigned on tax relief for the business community, and he has certainly kept that promise. Two years ago when business taxes were reduced, we saw substantial economic growth. We certainly anticipate more of the same thanks to the additional impending reductions,” according to Bruce Berke, NFIB New Hampshire State Director. “Business tax reductions will allow New Hampshire to be even more competitive than we already are. As businesses in states with hostile economic environments continue to seek refuge from onerous taxes, our hope is that they will find a home in the Granite State.”
The budget, which was signed by the Governor last night, will lower the BET to .60 percent in 2019 and then .50 percent in 2021. The BPT will decrease in 2019 to 7.7 percent, and again in 2021 to 7.5 percent. In addition to these tax cuts, Section 179 expensing, which applies to capital purchases by business owners, will now be eligible for a deduction that matches the federal level, up to $500,000.
“Not only will these measures encourage out of state businesses to relocate here, but our established employers will have even more incentives to expand their existing enterprises,” continued Berke. “It’s been long recognized that when small business owners have a tax reduction, the additional revenue is put back into their businesses. Whether that be purchasing additional equipment or creating more jobs, it’s a net positive for our state economy.”