New Hampshire Senate Bill SB652

New Hampshire 2026 Regular Session

• Introduced: 1/22/26
• Refer: 1/22/26
• Report Pass: 2/4/26
• Engrossed: 2/26/26
• Refer: 2/26/26
• Report Pass: 4/1/26

Caption

changing the maximum award of tax credits for overpayment of due taxes.

Summary

SB 652 changes how much of a business taxpayer’s overpayment can be retained as a credit against future tax liability, rather than being refunded. The bill amends the Business Profits Tax provision governing overpayments and establishes a new phase-down schedule for the maximum credit carryforward amount for taxable periods ending on or after December 31, 2029. Under the bill, the cap would decline from 450 percent in 2029 to 400 percent in 2031, 350 percent in 2033, 300 percent in 2035, 250 percent in 2037, 200 percent in 2039, and 150 percent in 2041, with any amount above the applicable cap refunded to the taxpayer. The bill affects the timing and amount of refunds issued from the General Fund and Education Trust Fund, and it is expected to increase net state revenue by reducing refunds rather than creating a new tax. The fiscal note estimates an indeterminable revenue increase in FY 2029 and a cumulative increase of about $54.1 million across fiscal years 2030 through 2044, based on Tax Year 2023 data and assumptions that taxpayer behavior remains unchanged. The Department of Revenue Administration notes that actual impacts could vary depending on how taxpayers respond to the new limits. Overall sentiment appears neutral to favorable in the available record, though there are no committee transcripts or recorded votes to show debate or opposition. The bill was adopted by both bodies, suggesting it advanced without documented controversy in the materials provided. The fiscal note frames the measure as a revenue-recognition change that shifts money from future credits/refunds into earlier state receipts. The main point of contention is likely the tradeoff between state revenue stability and taxpayer flexibility. Businesses with large overpayments would be less able to carry forward credits indefinitely at high levels and would receive more of those amounts as immediate refunds instead. That means the bill benefits state cash flow and revenue collections, while reducing the size of credit balances available to some taxpayers over time. No specific opponents or supporters are identified in the provided materials.

Impact

SB 652 amends RSA 77-A:7, I(b) governing Business Profits Tax overpayments and credit carryforwards. It changes the maximum amount of an overpayment that may be credited against future tax liability and requires any excess to be refunded, replacing the current scheduled limits with a longer phase-down schedule through 2041. The bill affects taxpayers subject to the Business Profits Tax and, according to the fiscal note, also influences refunds associated with the Business Enterprise Tax through the Department of Revenue Administration’s administration of credit carryforwards. In practical terms, it reduces the amount of overpaid tax that can remain on account as a future credit and increases the amount that must be paid back to taxpayers sooner.

Sentiment

The available record suggests the bill was generally treated as a technical tax policy change rather than a controversial measure. There are no committee transcripts or recorded roll-call votes included, but the bill was adopted by both bodies, indicating it moved forward successfully. The fiscal note presents the proposal in revenue-neutral policy terms from an expenditure standpoint, while projecting a positive revenue effect from reduced refunds. Overall, the tone of the materials is pragmatic and fiscally oriented, with no documented public disagreement in the provided context.

Contention

The central policy tension is between preserving larger credit carryforwards for businesses and accelerating refunds to taxpayers while increasing state revenue. Supporters would likely view the bill as improving state cash flow and reducing the buildup of large overpayment credits, while critics could argue that it limits businesses’ ability to smooth tax obligations over time and delays the benefit of credits they have already earned. The fiscal note also highlights uncertainty about taxpayer behavior, which could affect how much revenue the state ultimately realizes and when refunds are issued. No named legislators, agencies, or stakeholder groups are identified as opposing the bill in the materials provided.