New bill would cut taxes on New Hampshire small businesses
WIth job-seekers in need of a strong economic recovery, House Bill 10 would reduce the state’s business profits tax and the business enterprise tax.
With Main Street struggling in the wake of the COVID-19 pandemic, two bills under consideration in Concord would put more money back into the hands of New Hampshire small business owners – helping to jumpstart the state’s economic recovery.
House Bill 10 and Senate Bill 13would cut the rates of the business profits tax and the business enterprise tax, which take in more than $700 million a year combined. SB 13, sponsored by Senate President Chuck Morse, would cut taxes on business income from 7.7% to 7.5% and would reduce the business enterprise tax from 0.675% to 0.5%.
“The reduction is important because we know our Main Street businesses are struggling right now due to the pandemic, and Senate Bill 13 will help,” Morse said at a recent hearing.
“Family-owned businesses that have existed for generations are being stretched to the breaking point due to no fault of their own. We need to do all we can to help them survive and rebuild as we move forward.”
More than half of the business profits tax in New Hampshire is paid by businesses making less than $1 million a year, according to state figures.
Thousands of New Hampshire workers lost their jobs when restaurants, hotels, retail stores and other “non-essential” businesses closed last year due to New Hampshire’s stay-at-home order. And just as New Hampshire’s no-income-tax and no-sales-tax status draws economic activity to the Granite State, so too would reducing the cost of planting roots and growing a successful business.