Business Taxes

The Business Enterprise Tax (BET) was enacted in 1993. The tax is assessed on the taxable enterprise value tax base, which is the sum of all compensation paid or accrued, interest paid or accrued, and dividends paid by the business enterprise at the rate of .55% for taxable periods ending on or after December 31, 2022.  For taxable periods beginning on or after January 1, 2023, every business enterprise with more than $281,000 of gross receipts from all activities, or an enterprise value tax base of more than $281,000, must file a BET return. The filing threshold is adjusted biennially.

The BET paid may be used as a credit against the Business Profits Tax (BPT). Any unused portion of the BET credit may be carried forward and allowed against the BPT for five taxable periods from the taxable period in which the BET was paid for credits attributable to taxable periods ending before December 31, 2014, and for ten taxable periods from the taxable period in which the BET was paid for credits attributable to taxable periods ending on or after December 31, 2014.

The Business Profits Tax (BPT) was enacted in 1970. The tax is assessed on the taxable business profits of business organizations conducting business activity within the state. The tax rate is 7.6% for taxable periods ending on or after December 31, 2022, and 7.5% for taxable periods ending on or after December 31, 2023. For multi-state businesses, for taxable periods ending before December 31, 2022, income is apportioned using a weighted sales factor of two and the standard payroll and property factors. For taxable periods ending on or after December 31, 2022, income is apportioned using single sales factor. Organizations operating a unitary business must use combined reporting in filing their NH return. For taxable periods beginning on or after January 1, 2023, every business organization with gross business income from all business activities of more than $103,000 must file a BPT return. The filing threshold is adjusted biennially.