Below are key changes to tax and employment laws affecting NH businesses:
A new Education Tax Credit lets businesses contribute to scholarship organizations and take a tax credit against the Business Enterprise Tax (BET) and/or Business Profits Tax (BPT) equal to 85 percent of the contribution. Businesses can donate up to $400,000 in 2013.
The Net Operating Loss (NOL) that can be carried forward in a tax year will increase to $10 million beginning Jan. 1, 2013. Previously only $1 million of NOL could be carried forward.
For tax year ending on or after Dec. 31, 2013, the Business Enterprise Tax filing thresholds increase to more than $200,000 for gross business receipts and more than $100,000 for enterprise value base. Prior filing limits were $150,000 and $75,000 respectively.
A revised Limited Liability Company (LLC) Act says an operating agreement is valid if it is written, oral or implied by conduct. The old law required a written document. The new law also expands rights for LLC members against judgment creditors and other third parties. LLCs formed in 2013 will be governed by the new law. Existing ones will be under the previous law until 2014 unless they opt in before then.
The Research and Development Tax Credit was extended from July 1, 2013 to July 1, 2015.
The Communications Services Tax was revised to clarify that internet access service is not subject to the tax.
The Business Profits Tax expense reduction allows expense reductions up to $25,000 when calculating gross business profits. The former law allowed up to $20,000 in deductions.
Changes to worker safety laws: Employers with 15 or more employees must have worker safety committees that meet quarterly and post minutes. (It was 5 employees.) Employers with 15 or more employees must file safety summaries with the Labor Department and update them every two years. (It was 10 employees.)
Sources: James P. Reidy, Sheehan Phinney Bass + Green; NH Department of Revenue Administration; Baker Newman Noyes
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