Two More Business Tax Reform Bills Move Forward

Two  More Business Tax Reform  Bills Move Forward

CONCORD  –
In addition to the business tax  relief included in the Republican state budget  passed last year by overriding the governor’s  veto, the legislature has been working on other  bill s to help the state take steps in the right  direction on other areas of business tax law.
This week,  a joint  committee of conference on  SB293 and HB668 met to work out the  fin al  details of the two bills dealing with the same  subject matter:  raising the cap on deductions  for capital purchases.
Often referred to as the  “ section 179 ” bills,  referencing the federal tax code provisions the  bills hope to reflect at the state level, the  committee settled on the House language  raising the cap to $100,000, a 4x increase from  the current $25,000 level.
The second area of reform was addressed in
SB342 ,  which the Union Leader describes,  “ change[s] how closely held companies such as  sole proprietorships or limited liability  companies are taxed when they receive an  infusion of cash, such as an initial public  offering or investment capital. ” This legislation  hopes to  alleviate the potentially crippling tax  burden for  growing  companies.
The committee of conference on SB342 also  adopted the House version of  the bill.
These two new provisions along with the first  business tax r ate cuts in 20 years  add to the  pro – business resume of this Republican  legislature.