Governor Hassan of New Hampshire has approved legislation that updates the state’s Internal Revenue Code (IRC) tie-in date for purposes of computing New Hampshire’s business profits tax liability to December 31, 2015 (currently, December 31, 2000). This change applies to tax periods beginning on or after January 1, 2017.
Also effective January 1, 2017, the legislation requires that certain IRC provisions do not apply to the business profits tax: IRC §168(k) (bonus depreciation), IRC §199 (domestic production activities), and IRC §181 (election to deduct certain film and television production costs). Further, IRC §179 (asset expense election) will be subject to a deduction limit of $100,000 for property placed in service on or after January 1, 2017. Currently, the limit is $25,000 for property placed in service on or after 2011. This increase applies to tax periods beginning on or after January 1, 2017.
Ch. 295 (S.B. 239), Laws 2015, effective as noted above