relative to the safe harbor compensation amount under the business profits tax.

This bill increases the safe harbor compensation limit for the New Hampshire Business Profits Tax from $75,000 to $100,000. It allows business owners to automatically deduct up to this amount for their own compensation without needing to prove the value of their services, simplifying tax filing for many small businesses. Starting in 2025, the threshold will be automatically adjusted every two years based on changes in the Consumer Price Index to account for inflation. The law applies to tax years ending on or after December 31, 2024, and takes effect 60 days after passing.