Concord, NH – Today, the Senate Finance Committee voted to help increase job growth in New Hampshire by reducing the state’s Business Enterprise Tax and the Business Profits Tax, providing tax relief to business employing 95% of New Hampshire’s private sector workforce. The Committee voted to lower the BPT from 8.5% to 8.3%, and to reduce the BET from 0.75% to 0.725% in 2017. Both taxes would drop twice over the next four years, with the BPT ending at 7.9% and the BET at 0.675% by 2020.
The Senate Finance Committee also passed an increase for the Research and Development Tax Credit to $7 million dollars, more than tripling the amount available to businesses, as part of the budget proposal.
“We have done a great job in providing funding for the state’s most vulnerable citizens in this budget proposal by restoring cuts to Meals on Wheels, Service Link, the Development Disability Waitlist, and other critical services, while also maintaining a balanced budget that lives within our means. While taking care of those most in need is a priority, it is also crucial that we help grow jobs in New Hampshire,” said Senate President Chuck Morse (R-Salem).
“New Hampshire has some of the highest business taxes in the country and by reducing these rates, we expect to see Granite State business owners create new jobs and provide pay raises to their employees living and working here,” said Senate Majority Leader Jeb Bradley (R-Wolfeboro), who sponsored legislation to reduce the Business Profits Tax and increase the Research and Development Tax Credit.
“Lowering business tax rates and increasing resources for businesses to conduct research and development initiatives will not only provide a much needed, long-term incentive for companies to grow their business in the State, but it will also drive the economy for more than 32,000 small business owners, and attract new businesses to move here. Overall, these critical business priorities will restore the strong foundation for an energized economy in the state of New Hampshire,” Bradley added.
“New Hampshire’s corporate taxes rank 48th in the country, and if we don’t lower them, we will soon be the highest in New England. That stifles economic growth, and the Senate has been committed to helping improve New Hampshire’s economy,” said Andy Sanborn (R-Bedford), prime sponsor of legislation lowering the Business Enterprise Tax.
“I am thankful for the Senate Finance Committee’s vote to include lower business tax rates in the Senate budget proposal, and for their support of creating jobs in the state. By making these reductions, we are allowing business owners to devote their resources to growing their businesses and creating new job opportunities,” Sanborn continued.
Concord, NH — Today the Senate Finance committee voted to restore the Renewable Energy Fund in keeping with the Senate’s prior actions of protecting dedicated funds.
“We are working hard to make sure dedicated funds, like the Renewable Energy Fund, are restored or maintained at a consistent level,” said Senate Finance chair Jeanie Forrester (R- Meredith). “Senate Republicans have led on the issue of maintaining the integrity of dedicated funds and the Senate has voted on several occasions, overwhelmingly, in support of this issue.”
“Today’s vote was an important step in working towards a budget that makes responsible spending decisions but also lives within our state’s means,” continued Forrester.
“We have heard from numerous small business owners in the energy industry that the Renewable Energy Fund serves an important role in their ability to be successful in the state,” said Senate Finance Vice-Chair Jerry Little (R-Weare), who also serves on the Energy and Natural Resources committee.
“Senate Republicans are committed to making New Hampshire’s small businesses a priority and by restoring the Renewable Energy Fund we will continue to meet their needs,” added Little.
Concord, NH – Today, Governor Maggie Hassan announced that she will restore funding to nursing homes in the State of New Hampshire.
“The Governor’s decision to restore cuts to the state’s nursing homes is welcome news,” said Senate President Chuck Morse (R-Salem). “The Senate is working hard to not only make nursing home funding a priority in the budget we are currently building, but to also maintain a balanced budget that reflects the needs of our state as a whole.”
“I am encouraged to hear that the Governor has agreed to withdraw her proposal to reduce Nursing Home funding that the legislature passed in the current budget. Maintaining the funding appropriated to our state’s nursing homes in the current budget is not only the right thing to do but is dictated by law in the current budget,” said Senate Finance Chair Jeanie Forrester (R-Meredith).
“We continue to oppose the Governor’s proposal to reduce funding for home health care and the senate will work to make sure this funding is restored as we build the fiscal year 2016-17 budget,” added Forrester.
Cuts would benefit 95% of NH private sector workforce
Concord, NH — The New Hampshire Senate today passed two important bills as part of the Senate Republican agenda to help bolster New Hampshire’s economy by reducing the Business Profits Tax from 8.5% to 7.9% and the Business Enterprise Tax by 10% over the next three budgets.
“Our entire focus this session is to get New Hampshire’s economy moving and passing a state budget that spends only what the state can afford. This modest cut in the state’s business taxes sends a message to our job creators in New Hampshire and those looking to move here that we are serious about wanting their business and the jobs they bring with them,” said Senate President Chuck Morse (R-Salem).
“Passing these bills was a critical step in how the Senate will go about building the next budget. As our economy expands, we can certainly afford to make modest business tax cuts a priority within our $10.5 billion state budget,” Morse continued. “The cost of implementing job-friendly reductions is one-quarter of one-percent of the entire State’s current operating budget.”
“New Hampshire job growth has lagged. Hardworking business owners have had difficulty expanding or hiring new employees,” said Senator Jeb Bradley (R-Wolfeboro). “Reducing the rate of the Business Profits Tax and Business Enterprise Tax will help companies re-invest in people, growing their businesses and adding new jobs – the types of things we need and hope to see more of in the state.”
“With the Governor’s support, our state can be among the 27 other states that have reduced their corporate tax rates to spur economic growth. Doing nothing will allow New Hampshire to pay the highest business tax rate in New England alone,” said Bradley.
“New Hampshire right now has the 3rd highest business tax rates in the country which is a significant burden for employers. By reducing the BET and BPT, New Hampshire will take a step towards restoring a competitive business environment when compared to other states in the region and nationally,” said Andy Sanborn (R- Bedford).
“This was the right decision because it will let everyone know that New Hampshire is open for business. Reducing this tax barrier will not only incentivize existing business owners who pay taxes to grow their business, but will also encourage new employers to move into the state.”
“I urge the House and Governor Hassan to support these important bills, and send a strong signal that we are serious about creating economic opportunity for everyone,” Sanborn added.
Concord, NH – Senate Transportation Committee Chair Nancy Stiles (R-Hampton) today commented on the Committee’s unanimous vote against a bill designed to bring New Hampshire under the federal REAL ID program. The Transportation Committee this week voted 5-0 to recommend that SB 262 is Inexpedient to Legislate.
“In 2007, the New Hampshire Legislature was the first in the nation to reject the national ID program known as REAL ID. Since then, we have taken steps to improve our drivers’ licenses,” Stiles explained. “There is no need to enter into a national ID program, and no urgency or reason why federal authorities won’t continue to honor New Hampshire licenses at this time.”
HB 685 passed the New Hampshire House 268-9 and the Senate 24-0 before being signed into law by Governor John Lynch in 2007. Then-Senator Maggie Hassan voted to keep New Hampshire out of REAL ID. Since then, 26 other states have passed laws or resolutions opposing REAL ID. SB 262 would enter all New Hampshire Social Security numbers into a Department of Homeland Security database, unless New Hampshire drivers opt out. Those drivers would then be given a special license marked to show that it does not meet the national ID standards.
“SB 262 would have created a second class of drivers’ licenses for New Hampshire residents who did not want their Social Security numbers stored in a federal database, while bringing New Hampshire under REAL ID,” Stiles added. “This bill simply isn’t necessary, and the Transportation Committee unanimously urges our Senate colleagues to defeat it on the Senate floor next week.”
Text and Docket of HB 685 (2007)
List of non-compliant states
Concord, NH – The New Hampshire Senate Ways and Means Committee today gave its approval to a pair of bills lowering business taxes in the Granite State. SB 1 would lower the Business Profits Tax from 8.5% to 7.9%. SB 2 would lower the Business Enterprise Tax from .75% to .675%. The bills would gradually lower business tax rates over the next three budgets, with the first tax cut going into effect immediately upon passage.
“New Hampshire currently ranks 48th highest for business taxes in the country, which has resulted in a significant burden on our state’s small businesses and discouraged many from considering a move to our state. By lowering the BPT and BET, we move to restore New Hampshire’s business friendly environment and the state’s competitive edge when compared to other New England states,” said Senate Majority Leader Jeb Bradley (R-Wolfeboro).
“States like Rhode Island have reduced corporate taxes, following the nation-wide trend of 27 other states that reduced their business tax rates in an effort to encourage economic growth,” Bradley added. “If we do nothing, New Hampshire businesses will pay the highest corporate tax rate in New England.”
“Today, New Hampshire employers are operating in an environment where the cost of doing business is one of the most expensive in the country and I have been discouraged that every other state in New England has lower taxes than New Hampshire,” said Senator Andy Sanborn (R-Bedford).
“Our lackluster economic recovery is clear proof of our need to find every way possible to ensure we are an affordable, competitive state to do business. These two bills are an important step in the right direction for retaining and attracting responsible employers to New Hampshire, which will result in better opportunities, like more jobs and better paying jobs for those seeking opportunity in the state,” Sanborn added.
“I hope to see support of the House and the Governor on this critical issue.”
Sen. John Reagan- Chair, JLCAR
CONCORD, NH — Today, the New Hampshire Senate defeated an attempt to repeal New Hampshire’s Education Tax Credit program supporting School Choice Scholarships. The program allows businesses to take credit against their business taxes for donations to qualified scholarship organizations that provide scholarships to low-income New Hampshire families.
“New Hampshire’s School Choice Scholarships make it more affordable for low-income families to choose the right school to suit their child’s individual needs,” said Senate Education Committee Chair John Reagan (R-Deerfield). “Although the Education Tax Credit Program is just in the beginning, it is already showing results for our state’s students and it is already saving the state money.”
The Education Tax Credit program was first approved in 2012, and last year the New Hampshire Supreme Court rejected a teachers unions lawsuit to block the program. The Senate today voted 14-10 against repealing the program, with all 14 Senate Republicans supporting school choice.
“We’ve seen 143 students receive scholarships to attend the schools that they and their parents think will give them the best education possible,” continued Reagan.
“The modest amount the state spends on tax credits to companies that fund these scholarships leverages an even greater investment to New Hampshire schools. I hope to see it continue to grow.”
Responding to critics who disparage any education delivery system other than a public school, Reagan said, “The encouragement of competition in delivery of a service is not a denigration of those who hold an effective market monopoly. Competition often improves the quality of a service, and always reduces the price.”