CHAPTER 203
SB 58-FN-A - FINAL VERSION
03/27/03 0927s
04/10/03 1201s
15may03... 1520h
2003 SESSION
09/01
SENATE BILL 58-FN-A
AN ACT relative to the net operating loss under the business profits tax.
SPONSORS: Sen. Foster, Dist 13; Sen. Sapareto, Dist 19; Sen. O'Hearn, Dist 12; Sen. Clegg, Dist 14; Sen. Below, Dist 5; Sen. Cohen, Dist 24; Sen. Boyce, Dist 4; Rep. Lasky, Hills 65; Rep. Mercer, Hills 59; Rep. Norelli, Rock 86; Rep. Weyler, Rock 79
This bill eliminates the requirement to carryback losses for net operating loss under the business profits tax.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03/27/03 0927s
04/10/03 1201s
15may03... 1520h
03-1113
09/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Three
AN ACT relative to the net operating loss under the business profits tax.
Be it Enacted by the Senate and House of Representatives in General Court convened:
203:1 Business Profits Tax; Net Operating Loss; Requirement to Carry-Back Losses Eliminated. Amend RSA 77-A:4, XIII to read as follows:
XIII. A deduction for the amount of the net operating loss carryover determined under section 172 of the United States Internal Revenue Code in effect on December 31, 1996 [provided, however, that in calculating such net operating loss carryover, the election permitted under section 172(b)(3) of the United States Internal Revenue Code in effect on December 31, 1996, shall not be allowed]. A net operating loss shall be apportioned in the year incurred according to RSA 77-A:3. Net operating losses may only be carried forward for the 10 years following the loss year. For taxable periods ending:
(a) On or before June 30, 2003, the amount of net operating loss generated in a tax year that may be carried forward may not exceed $250,000.
(b) On or after July 1, 2003 and on or before June 30, 2004, the amount of net operating loss generated in a tax year that may be carried forward may not exceed $500,000.
(c) On or after July 1, 2004 and on or before June 30, 2005, the amount of net operating loss generated in a tax year that may be carried forward may not exceed $750,000.
(d) On or after July 1, 2005, the amount of net operating loss generated in a tax year that may be carried forward may not exceed $1,000,000.
In the case of a business organization not qualifying for treatment as a subchapter C corporation under the United States Internal Revenue Code, such deduction shall be the amount that would be determined under section 172 of the United States Internal Revenue Code in effect on December 31, 1996 if the business organization were a subchapter C corporation and as limited by this section. A deduction for the amount of the net operating loss carryover shall be limited to losses incurred on or after July 1, 1997.
203:2 Revenue Rule Rescinded. The department of revenue administration's rule Rev 303.03 shall be rescinded and the commissioner of the department of revenue administration shall adopt new rules consistent with this chapter.
203:3 Effective Date. This act shall take effect July 1, 2005 for taxable periods ending on or after July 1, 2005.
(Approved: June 30, 2003)
(Effective Date: July 1, 2005 for taxable periods ending on or after July 1, 2005)