relative to increasing the amount of the expense deduction allowed against the business profits tax.

This bill increases the maximum expense deduction allowed against New Hampshire's business profits tax from $500,000 to $1,000,000 for qualifying property placed in service on or after January 1, 2025. The change applies to all businesses filing for taxable periods ending on or after December 31, 2024, allowing them to deduct a larger portion of their capital investments immediately rather than spreading the cost over several years. While the Department of Revenue Administration estimates this could reduce state revenue by up to $4.7 million, it notes that the actual financial impact is indeterminable because the bill may simply shift when businesses claim deductions rather than eliminate them entirely. The legislation requires the state to update its tax forms and electronic systems to reflect the new deduction limit.