Two More Business Tax Reform Bills Move Forward
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.