CONCORD, NH (Jan. 21, 2026) — The National Federation of Independent Business (NFIB) in New Hampshire, which represents more than 1,700 members in the state, is urging lawmakers to support small business investment in Granite State by passing HB 1597. This bill raises the Section 179 deduction to the recently updated federal limit of $2.5 million, helping Main Street businesses invest, improve, and grow in New Hampshire.

“The Section 179 deduction rewards small businesses for investing and growing here in New Hampshire,” said John Reynolds, NFIB New Hampshire State Director. “Disappointingly, the Granite State is behind most of New England when it comes to helping small businesses purchase new equipment, upgrade machinery, or improve their facilities. Only New Hampshire and Connecticut did not conform to updated federal limits after the 2017 Tax Bill, and lawmakers here should not make the same mistake this time.”

Section 179 is a provision in the federal tax code that allows small businesses to take the full value of qualifying capital investments in the first year of the expense rather than spreading it over many years. This recognizes the real value of the investment in present dollars and helps small businesses continue to invest and grow. Machinery, equipment, software, and certain buildings qualify for the deduction.

New Hampshire’s Section 179 deduction limit has remained at $500,000 since June 2017. Later that year, the federal government increased the deduction limit to $1 million and indexed that level to inflation in the Tax Cuts and Jobs Act (TCJA). According to the nonpartisan Tax Foundation, most states conformed to the higher Section 179 limit adopted in the TCJA.

In July 2025, the federal tax bill again increased the limit to $2.5 million on qualifying expenses of up to $4 million. Many states automatically or have already elected to conform to the new limit.

HB 1597 is scheduled to be heard in the New Hampshire House Ways and Means Committee on January 21 at 11:15 am.