TITLE V
TAXATION

Chapter 77-E
BUSINESS ENTERPRISE TAX

Section 77-E:1

    77-E:1 Definitions. –
In this chapter:
I. "Accumulated revenues and profits" means:
(a) In the case of a corporation, other than a subchapter S corporation, the amount determined to be earnings and profits for federal income tax purposes; or
(b) In the case of all other business enterprises, including subchapter S corporations, the total undistributed revenues of the enterprise from whatever source derived, except that no distribution of capital, whether in liquidation or otherwise, shall be included in the enterprise value tax base.
II. "Business activity" means a transfer of legal or equitable title to or rental of property, whether real, personal or mixed, tangible or intangible, or the performance of services, or a combination thereof, made or engaged in, or caused to be made or engaged in, whether in intrastate, interstate, or foreign commerce, with the object of gain, benefit, income, revenue or advantage, whether direct or indirect, to the business enterprise or to others, but shall not include the services rendered by an employee to an employer or services as a director of a corporation. Although an activity of an enterprise may be incidental to another of its business activities, each activity shall be considered to be business engaged in or carried on within the meaning of this chapter. Notwithstanding any other provision of this paragraph, a holder of an ownership interest in a qualified investment company as defined in RSA 77-E:1, XIV, shall not be deemed to be carrying on any business activity within this state due solely to its holding an ownership interest in such qualified investment company.
III. "Business enterprise" means any profit or nonprofit enterprise or organization, whether corporation, partnership, limited liability company, proprietorship, association, trust, foundation, business trust, real estate trust or other form of organization engaged in or carrying on any business activity within this state, except such enterprises as are expressly made exempt from income taxation under section 501(c)(3) of the United States Internal Revenue Code to the extent such enterprise does not engage in any business activity constituting unrelated business activity as defined by section 513 of the United States Internal Revenue Code. Each business enterprise under this definition shall be subject to the tax imposed under RSA 77-E as a separate entity except that trusts and foundations treated as grantor trusts under section 671 of the United States Internal Revenue Code shall be included in the return of their owners, and such owners shall be subject to the tax thereon to the extent any such owners would be considered a business enterprise hereunder notwithstanding the existence of the trust or foundation. The use of consolidated returns as defined in the United States Internal Revenue Code or of combined reporting is not permitted. Notwithstanding any other provision of this paragraph, an enterprise shall not be characterized as a business enterprise and shall be excluded from taxation at the entity level if it is a qualified investment company as defined in RSA 77-E:1, XIV or if it is a qualified regenerative manufacturing company as defined in RSA 77-E:1, XIV-a.
IV. "Commissioner" means the commissioner of revenue administration.
V. For taxable periods beginning on or after January 1, 2013, "compensation" means:
(a) All wages, salaries, fees, bonuses, commissions, or other payments paid directly or accrued by the business enterprise in the taxable period on behalf of or for the benefit of employees, officers, or directors of the business enterprise and subject to or specifically exempt from withholding under section 3401 of the United States Internal Revenue Code except such payments as are made expressly exempt from withholding under sections 3401(a)(1), (9), (10), (13), (14), (15), (16), (18), (19), and (20); and except any tips required to be reported by the employee to the employer under section 6053(a) of the United States Internal Revenue Code; and
(b) The amount of any deduction taken under RSA 77-A:4, III in the taxable period; and
(c) Any net earnings from self-employment subject to tax under section 1401 of the United States Internal Revenue Code to the extent not included in the amount of any deduction taken under RSA 77-A:4, III in the taxable period.
VI. "Dividends" means any distribution of money or property, other than the distribution of newly issued stock of the same enterprise, to the owners of a business enterprise with respect to their ownership interest in such enterprise from the accumulated revenues and profits of the enterprise. The term "dividends" shall not include:
(a) Distributions of money or property to beneficiaries of a trust qualified under section 401 of the United States Internal Revenue Code;
(b) Cash or non-cash payments of life, sickness, accident, or other benefits to members or their dependents or designated beneficiaries from a voluntary employee's beneficiary association qualified under section 501(c)(9) of the United States Internal Revenue Code;
(c) Distributions of money or property to participants from any common trust fund as defined under section 584 of the United States Internal Revenue Code;
(d) Policyholder dividends as defined under section 808 of the United States Internal Revenue Code, to the extent such dividends are not reduced pursuant to section 809 of the United States Internal Revenue Code;
(e) Payment of interest on deposits of depositors of a mutual bank or credit union; or
(f) Distributions of money or property to or on behalf of beneficiaries of a trust which is either subject to taxation under section 641 or described in section 664 of the United States Internal Revenue Code, provided that, this subparagraph shall apply only to the extent that such trust limits its activities to personal investment activities which do not constitute business activities, and those incidental to or in support of such personal investment activities.
VII. "Employee" means an employee as defined in section 3401(c) of the United States Internal Revenue Code. Any person from whom an employer is required to withhold for federal income tax purposes shall prima facie be deemed an employee.
VIII. "Employer" means an employer as defined in section 3401(d) of the United States Internal Revenue Code. Any person required to withhold for federal income tax purposes shall prima facie be deemed an employer.
IX. "Enterprise value tax base" means the sum of all compensation paid or accrued, interest paid or accrued, and dividends paid by the business enterprise, before special adjustments provided in RSA 77-E:3 or apportionment as provided in RSA 77-E:4.
X. "Gross business receipts" means all income for federal income tax purposes from whatever source derived in the conduct of business activity, including but not limited to gross proceeds from sales, compensation for rendering services, gross proceeds realized from trading in stocks, bonds, or other evidences of indebtedness, gross proceeds realized from sale of assets used in trade or business, interest, discount, gross rents, royalties, fees, commissions, dividends, without any deduction on account of the cost of property sold, the cost of materials used, labor costs, interest, discount, delivery costs, taxes, or any other expense paid or accrued and without any deduction on account of losses. In the case of non-profit enterprises not required to pay income taxes, the sum of all revenues derived in the conduct of business activity, including but not limited to the items included in the preceding sentence. Any receipts that would otherwise be considered "gross business receipts" received by an enterprise that constitutes a qualified trust under section 401, or is defined in section 501(c)(9), or section 584, of the United States Internal Revenue Code shall not be included in gross business receipts for purposes of this chapter.
XI. "Interest" means all amounts paid or accrued for the use or forbearance of money or property. The term "interest" shall not include amounts paid, credited or set aside in connection with reserves by insurers to fulfill policy and contractual responsibilities to policy holders or by voluntary employees' beneficiary associations qualified under section 501(c)(9) of the United States Internal Revenue Code to fulfill obligations to members.
XII. "Prescribed filing date" means the original statutory due date, or approved extended due date.
XIII. "Prescribed payment date" means the original statutory due date.
XIV. (a) "Qualified investment company" means:
(1) A regulated investment company as defined in section 851 of the United States Internal Revenue Code as defined in RSA 77-E:1, XVII;
(2) An organization that is an investment company under the Investment Company Act of 1940, as amended;
(3) An organization that would be an investment company under the Investment Company Act of 1940, as amended, but for the exception from investment company status provided by section 3(c)(1) or 3(c)(7) of said Investment Company Act; or
(4) A qualified community development entity as defined in section 45D of the United States Internal Revenue Code, which entity is owned, controlled, or managed, directly or indirectly, by the business finance authority of the state of New Hampshire.
(b) A qualified investment company shall limit its activities to investment or other activities consistent with its organizational purpose and those incidental to or in support of such activities provided that any such exception from investment company status by reason of section 3(c)(7) is available only to issuers whose securities are owned by persons or organizations who are deemed under section 3(c)(7) or any order, regulation or interpretation thereunder not to require protection under the provisions of the Investment Company Act by reason of their size, nature, status, or sophistication. A business organization seeking qualified investment company status shall file an election pursuant to RSA 77-A:5-b.
XIV-a. "Qualified regenerative manufacturing company" means any business enterprise which is a qualified regenerative manufacturing company as that term is defined under RSA 77-A:1, XXX at all times during the entire taxable year.
XV. "Taxable enterprise value tax base" means the enterprise value tax base adjusted by the special adjustments provided in RSA 77-E:3 and then adjusted by the method of apportionment provided in RSA 77-E:4.
XVI. "Taxable period" means the calendar or fiscal year, or fractional part of a year, which the business enterprise uses for federal income tax purposes. If the business enterprise is not required to make and file a return for federal income tax purposes, taxable period means the calendar or fiscal year, or fractional part of a year, the enterprise has adopted for financial purposes.
XVII. "United States Internal Revenue Code" means the United States Internal Revenue Code of 1986, as amended, without the rules, regulations, forms, and procedures of the United States Internal Revenue Service. The rules, regulations, forms and procedures of the United States Internal Revenue Service may, however, be used by the commissioner of revenue administration in formulating rules for adoption under RSA 541-A. This definition shall be operative unless and until a specific statutory exception to its adoption is provided in this chapter, or until the application of one of its provisions is held to violate the New Hampshire constitution.

Source. 1993, 350:19; 358:109. 1996, 154:2. 1998, 163:7. 2004, 143:6. 2011, 181:3, eff. June 14, 2011. 2013, 144:124, eff. June 28, 2013. 2017, 257:50, eff. Oct. 1, 2017. 2018, 157:3, 5, eff. July 29, 2018.

Section 77-E:2

    77-E:2 Imposition of Tax. –
I. For all taxable periods ending on or after December 31, 2019, a tax is imposed at the rate of 0.6 percent upon the taxable enterprise value tax base of every business enterprise.
II. For all taxable periods ending on or after December 31, 2022, a tax is imposed at the rate of 0.55 percent upon the taxable enterprise value tax base of every business enterprise.

Source. 1993, 350:19. 1999, 17:21; 303:1. 2001, 158:21, eff. July 1, 2001. 2015, 274:24, eff. Jan. 1, 2016. 2017, 156:214, eff. Jan. 1, 2019. 2019, 346:201, eff. July 1, 2019. 2021, 91:109, eff. June 25, 2021.

Section 77-E:3

    77-E:3 Special Adjustments. –
The following adjustments shall be made to the enterprise value tax base in determining taxable enterprise value tax base:
I. In the case of a business enterprise, the enterprise value tax base of which includes compensation derived from self-employment income subject to tax under section 1401 of the United States Internal Revenue Code, a deduction of such amounts of compensation as are retained for use in the business enterprise, except that no amount of compensation deducted under RSA 77-A:4, III shall be included in this deduction. The burden shall be upon the business enterprise to show that any amounts deducted have actually been retained for use in the business enterprise.
II. In the case of a business enterprise which is a corporation, a deduction of an amount equal to dividends received from another corporation which have previously been included in the payor corporation's taxable enterprise value tax base subject to taxation under this chapter and which payor corporation is, at the close of the day on which such dividend is received, a member of the same affiliated group as the corporation receiving the dividend. For purposes of this section, the term "affiliated group" shall have the meaning given such terms by section 1504(a) of the United States Internal Revenue Code, except that for such purposes sections 1504(b)(2), 1504(b)(4), and 1504(c) thereof shall not apply.
III. In the case of a business enterprise which is not a corporation, a deduction of an amount equal to dividend distributions received from another business enterprise which have previously been included in the payor business enterprise's taxable enterprise value tax base subject to taxation under this chapter and which payor business enterprise is, at the close of the day on which such dividend is received, a member of the same affiliated group as the business enterprise receiving the dividend distribution. For purposes of this section, the term "affiliated group" shall be determined by rules adopted by the commissioner similar to those applicable to corporations in paragraph II.

Source. 1993, 350:19, eff. July 1, 1993.

Section 77-E:3-a

    77-E:3-a Repealed by 2007, 263:123, III, effective July 1, 2020. –

Section 77-E:3-b

    77-E:3-b Credit for Research and Development. – The unused portion of any research and development credit awarded by the commissioner under RSA 77-A:5, XIII shall be available to apply to the business enterprise tax.

Source. 2007, 271:2, eff. July 1, 2007; 271:6, II, eff. July 1, 2015.

Section 77-E:3-c

    77-E:3-c Coos County Job Creation Tax Credit. –
I. (a) There shall be a tax credit allowed for each qualified tax credit employee, for up to 5 consecutive tax periods, as certified by the commissioner of business and economic affairs under RSA 162-Q:1. The amount of the tax credit shall be as follows:
(1) $750 for each qualified tax credit employee earning wages which are equal to or greater than 150 percent but less than 200 percent of the current state minimum wage.
(2) $1000 for each qualified tax credit employee earning wages which are equal to or greater than 200 percent of the current state minimum wage.
(b) If the position held by a qualified tax credit employee ceases to exist at any time during the 5 consecutive tax periods, the employer may not claim the credit for the tax period in which the position ceased to exist or for future tax periods within the 5 consecutive tax periods.
II. After being initially granted, the tax credit shall be renewable for 4 consecutive additional years, provided that no additional tax credit shall be granted under this chapter for any tax period after December 31, 2027.
III. Unused portions of this credit shall be carried forward up to 5 years. Unused, carried forward credit under this section shall be applied before any other available carry-forward credit.
IV. For the purpose of the credit allowed under this section, the Coos county job creation tax credit shall be considered taxes paid under RSA 77-E.

Source. 2008, 172:3, eff. June 9, 2008. 2013, 73:1, eff. July 1, 2013. 2017, 156:14, II, eff. July 1, 2017. 2019, 346:199, eff. July 1, 2019.

Section 77-E:3-d

    77-E:3-d Education Tax Credit. – The education tax credit as computed in RSA 77-G:4 shall be allowed against the tax due under this chapter.

Source. 2012, 287:3, eff. June 27, 2012.

Section 77-E:3-e

    77-E:3-e Granite State Paid Family Leave Plan Tax Credit. – There shall be a tax credit allowed against the tax due under this chapter in an amount equal to 50 percent of the premium paid by a sponsoring employer for family and medical leave insurance coverage offered to employees pursuant to RSA 21-I:103 for the taxable period in which the premium is paid.

Source. 2021, 91:469, eff. July 1, 2021.

Section 77-E:4

    77-E:4 Apportionment. –
I. A business entity, the business activities of which are taxable both within and without this state and which is subject to a business privilege tax, a net income tax, a franchise tax measured by net income, a capital stock tax, or a tax of the type imposed by this chapter or is subject to the jurisdiction of another state to impose a business privilege tax, a net income tax, a franchise tax measured by net income, a capital stock tax, or a tax of the type imposed by this chapter shall apportion its enterprise value tax base so as to allocate to this state a fair and equitable proportion of such base. Except as provided in this section, such apportionment shall be made in the following manner:
(a) The portion of the base from compensation shall:
(1) Include the amount of any deduction taken pursuant to RSA 77-A:4, III, the amount relating to self-employment income and the amount relating to wages and salaries subject to or specifically exempt from withholding under section 3401 of the United States Internal Revenue Code except such payments as are made expressly exempt from withholding under sections 3401(a)(1), (9), (10), (13), (14), (15), (16), (18), (19), and (20); and
(2) Be apportioned to this state as a percentage of total compensation paid by the business enterprise to employees everywhere as is paid by the business enterprise to employees for services rendered within this state. Such compensation is deemed to be disbursed for services in this state if the service is performed entirely within this state, or if the service is performed both within and without this state and the service performed without this state is incidental to the service within this state, or some of the service is performed in this state and (A) the base of operations or, if there is no base of operations, the place from which the service is directed or controlled is in this state, or (B) the base of operations or the place from which the service is directed or controlled is not in any state in which some part of the service is performed, but the individual performing such service resides within this state.
(b) The portion of the base from interest shall be apportioned by multiplying the percentage of value of the total real and tangible personal property owned and employed by the business enterprise everywhere as is owned and employed by it in business activities in this state. Property owned by the business enterprise shall be valued at its original cost.
(c) The portion of the base from dividends shall be apportioned on the basis of the 3 following factors, giving equal weight to each, and applying the average of the 3 percentages to the dividends:
(1) The compensation apportionment factor in subparagraph (a)(2) of this section;
(2) The interest apportionment factor in subparagraph (b) of this section; and
(3) The percentage of the total sales, including charges for services, made by the business enterprise everywhere as is made by it within this state:
(A) Sales of tangible personal property are made in this state if the property is delivered or shipped to a purchaser, other than the United States government, within this state regardless of free on board point or other conditions of sale, or the property is shipped from an office, store, warehouse, factory or other place of storage in this state and (i) the purchaser is the United States government, or (ii) the business enterprise is not taxable in the state of the purchaser.
(B) Sales other than sales of tangible personal property are in this state if the business enterprise's market for the sales is in this state, as follows:
(i) In the case of sale, rental, lease, or license of real property, if and to the extent the property is located in this state;
(ii) In the case of rental, lease, or license of tangible personal property, if and to the extent the property is located in this state;
(iii) In the case of sale of a service, if and to the extent the service is delivered to a location in this state;
(iv) In the case of sale, rental, lease, or license of intangible property, if and to the extent the property is used in this state;
(v) In the case of interest income, if and to the extent the debtor or encumbered property is located in this state;
(vi) In the case of dividend income, if and to the extent the business enterprise's commercial domicile is in this state; and
(vii) In the case of other income, if and to the extent the income is derived from sources in this state.
(C) In the case of sales other than sales of tangible personal property, if the state or states of assignment cannot be determined, the state or states of assignment shall be reasonably approximated.
(D) In the case of sales other than sales of tangible personal property, if the taxpayer is not taxable in a state to which a sale is assigned, or if the state of assignment cannot be determined or reasonably approximated, such sale shall be excluded from the denominator of the sales factor.
II. If the method of apportionment in paragraph I does not fairly represent the business enterprise's business activity in this state, the business enterprise may petition for, or the commissioner may require, in respect to all or any part of the business enterprise's business activity, if reasonable:
(a) The exclusion of any one or more of the apportionment factors;
(b) The inclusion of one or more additional apportionment factors which will fairly represent the business enterprise's business activity in the state; or
(c) The employment of any other method to effect an equitable apportionment of the business enterprise's enterprise value tax base.

Source. 1993, 350:19, eff. July 1, 1993. 2019, 342:2, eff. Jan. 1, 2021; 346:425, eff. Jan. 1, 2021.

Section 77-E:5

    77-E:5 Returns. –
I. Every business enterprise having gross business receipts in excess of $250,000 as defined by RSA 77-E:1, X, during the taxable period or the enterprise value tax base of which is greater than $250,000 shall, on or before the fifteenth day of the third month in the case of enterprises required to file a United States partnership tax return, the fifteenth day of the fifth month in the case of enterprises required to file a United States exempt organization return, and the fifteenth day of the fourth month in the case of all other business enterprises, following expiration of its taxable period, make a return to the commissioner. For tax years beginning January 1, 2015, the commissioner shall biennially adjust these threshold amounts rounding to the nearest $1,000 based on the 2-year (24-month) percentage change in the Consumer Price Index for All Urban Consumers, Northeast Region as published by the Bureau of Labor Statistics, United States Department of Labor using the amount published for the month of June in the year prior to the start of the tax year. All returns shall be signed by the business enterprise or by its authorized representative, subject to the pains and penalties of perjury and the penalties provided in RSA 21-J:39.
II. Every business enterprise shall in addition file a declaration of its estimated business enterprise tax for its subsequent taxable period; provided, however, if the estimated tax is less than $260, a declaration need not be filed; and provided further that a declaration shall be filed at the end of any quarter thereafter in which estimated tax exceeds $260. The declaration shall be filed when payments are due under RSA 77-E:6.

Source. 1993, 350:19. 1996, 235:2. 2001, 158:22, eff. July 1, 2001. 2012, 279:1, eff. as provided by 279:12, I. 2015, 183:2, eff. Aug. 28, 2015. 2016, 66:2, eff. July 4, 2016. 2021, 24:6, eff. May 6, 2021; 91:106, eff. Jan. 1, 2022.

Section 77-E:5-a

    77-E:5-a Election of Qualified Investment Company Status. – Business organizations that have elected qualified investment company status pursuant to RSA 77-A:5-b shall be qualified investment companies for the purposes of this chapter for the tax period or periods corresponding to the election.

Source. 2004, 143:7, eff. May 24, 2004.

Section 77-E:6

    77-E:6 Payments Due With Returns. –
I. All business enterprises required under RSA 77-E:5, II to make payments of estimated tax shall make such payments in installments as follows: 25 percent is due and payable on the fifteenth day of the fourth month of the subsequent taxable year; 25 percent is due and payable on the fifteenth day of the sixth month of the subsequent taxable year; 25 percent is due and payable on the fifteenth day of the ninth month of the subsequent taxable year; and 25 percent is due and payable on the fifteenth day of the twelfth month of the subsequent taxable year.
II. If the return required by RSA 77-E:5, I shows an amount to be due, such amount is due and payable on the prescribed payment date. If such return shows an overpayment of the tax due, the commissioner shall refund or credit the overpayment to the business enterprise in accordance with RSA 21-J:28-a, except that:
(a) For taxable periods ending on or after December 31, 2022 a credit shall only be allowed in an amount up to 500 percent of the total tax liability for the taxable period and the remainder of the overpayment shall be refunded;
(b) For taxable periods ending on or after December 31, 2025 a credit shall only be allowed in an amount up to 250 percent of the total tax liability for the taxable period and the remainder of the overpayment shall be refunded; and
(c) For taxable periods ending on or after December 31, 2027 a credit shall only be allowed in an amount up to 100 percent of the total tax liability for the taxable period and the remainder of the overpayment shall be refunded.

Source. 1993, 350:19. 1996, 235:3, eff. July 1, 1996. 2021, 91:116, eff. June 25, 2021.

Section 77-E:7

    77-E:7 Additional Returns. – When the commissioner has reason to believe that a business enterprise failed to file a return or to include any part of its enterprise value tax base in a filed return, the commissioner may require the enterprise to file a return or a supplementary return showing such additional information as the commissioner prescribes. Upon the receipt of the supplementary return, or if none is received within the time set by the commissioner, the commissioner may find and assess the amount due upon the information that is available. The making of such additional return does not relieve the business enterprise of any penalty for failure to make a correct original return or relieve it from liability for interest imposed under RSA 21-J:28 or any other additional charges imposed by the commissioner.

Source. 1993, 350:19, eff. July 1, 1993.

Section 77-E:8

    77-E:8 Extension of Time for Returns. – For good cause, the commissioner may extend the time within which a business enterprise is required to file a return, and if such return is filed during the period of extension no penalty may be imposed for failure to file the return at the time required by this chapter, but the enterprise shall be liable for interest and late payment charges as prescribed in RSA 21-J:28 and RSA 21-J:33. Failure to file the return during the period of the extension shall void the extension.

Source. 1993, 350:19, eff. July 1, 1993. 2016, 66:3, eff. July 4, 2016.

Section 77-E:9

    77-E:9 Corrections. – Each business enterprise shall report to the commissioner of revenue administration any change in the amount of its compensation, interest or dividends as finally determined by the United States Internal Revenue Service with respect to any previous year for which the business enterprise has made a return under this chapter. Such a report shall be made not later than 6 months after the business enterprise has received notice that such change has finally been determined. Notwithstanding any other provision of law, a business enterprise reporting a correction pursuant to this section shall be given notice by the department of any adjustment to the tax due with respect to such correction within 6 months after the filing of the report.

Source. 1993, 350:19, eff. July 1, 1993.

Section 77-E:10

    77-E:10 Taxpayer Records. –
Every business enterprise shall:
I. Keep such records as may be necessary to determine the amount of its liability under this chapter.
II. Preserve such records for the period of 5 years or until any litigation or prosecution under this chapter is finally determined.
III. Make such records available for inspection by the commissioner or authorized agents, upon demand, at reasonable times during regular business hours. Whoever violates the provisions of this section shall be subject to the penalties imposed under RSA 21-J:39.

Source. 1993, 350:19, eff. July 1, 1993.

Section 77-E:11

    77-E:11 Administration. –
I. The commissioner shall collect the taxes, interest, additions to tax, and penalties imposed under this chapter and RSA 21-J.
II. The commissioner of revenue administration shall adopt rules, pursuant to RSA 541-A, relative to:
(a) The form of the return and the data which it must contain for the correct computation of gross business receipts and taxable enterprise value tax base attributable to this state and the tax assessed on it;
(b) The administration of the business enterprise tax;
(c) The recovery of any tax, interest on tax, additions to tax, or penalties imposed by RSA 77-E or RSA 21-J; and
(d) The implementation, interpretation, or specific application of any part of this chapter to particular business enterprises.
III. The commissioner may institute actions in the name of the state to recover any tax, interest on tax, additions to tax, or the penalties imposed by this chapter.
IV. In the collection of the tax imposed by this chapter, the commissioner may use all of the powers granted to tax collectors under RSA 80 for the collection of taxes, except that the tax imposed by this chapter shall not take precedence over prior recorded mortgages. The commissioner shall also have all of the duties imposed upon the tax collectors by RSA 80 that are applicable. The provisions of RSA 80:26 apply to the sale of land for payment of taxes due under this chapter, and the state treasurer is authorized to purchase the land for the state. If the state purchases the land, the state treasurer shall certify the purchase to the governor, and the governor shall draw a warrant for the purchase price out of any money in the treasury not otherwise appropriated.

Source. 1993, 350:19. 1996, 154:6, eff. July 1, 1996.

Section 77-E:12

    77-E:12 Certifications for Dissolution, Withdrawal, and Good Standing. –
I. (a) No corporation organized under any law of this state may transfer property to its shareholders pursuant to RSA 293-A:14.05(a) until all taxes and interest imposed upon the corporation under this chapter have been fully paid and a certificate of dissolution shall have been obtained from the commissioner of revenue administration that no returns, tax, additions to tax, interest, or penalties for taxes administered by the department are due and unpaid.
(b) A corporation wishing to transfer property to its shareholder pursuant to RSA 293-A:14.05(a) shall submit a written request containing the complete corporate name and identification number and accompanied by a non-refundable fee of $30 to the commissioner of revenue administration. This fee shall be deposited into the general fund. If, after reviewing the corporation's records, the commissioner determines that no returns, tax, additions to tax, interest, or penalties for taxes administered by the department are due and unpaid, the commissioner shall prepare a statement in accordance with subparagraph (a).
II. A business enterprise wishing to obtain a statement for withdrawal, in accordance with RSA 293-A:15.20(b)(6) shall submit a written request containing the complete corporate name and identification number and accompanied by a non-refundable fee of $30 to the commissioner of revenue administration. This fee shall be deposited into the general fund. If, after reviewing the business enterprise's records, the commissioner determines that no returns, tax, additions to tax, interest, or penalties for taxes administered by the department are due and unpaid, the commissioner shall prepare a statement for withdrawal as required under RSA 293-A:15.20(b)(6).
III. A business enterprise wishing to obtain a statement that it is in good standing with the department of revenue administration shall submit a written request containing the complete corporate name and identification number and accompanied by a non-refundable fee of $30 to the commissioner of revenue administration. This fee shall be deposited into the general fund. If, after reviewing the business enterprise's records, the commissioner determines that no returns, tax, additions to tax, interest, or penalties for taxes administered by the department are due and unpaid, the commissioner shall prepare a statement of good standing.

Source. 1993, 350:19, eff. July 1, 1993.

Section 77-E:13

    77-E:13 Application of Credit for Business Enterprise Tax Against Business Profits Tax. –
If the business enterprise liable for taxes imposed by this chapter is a member of a unitary business within the meaning of RSA 77-A:1, XIV, then the entire amount of the taxes due under this chapter by the individual member of such unitary business shall be allowed as a credit pursuant to RSA 77-A:5, X, against such individual member's portion of the total tax liability of the unitary business under RSA 77-A. In the event that the individual member's credit exceeds such member's portion of the total tax liability of the unitary business, the excess of such credit shall be allowed as a credit against any other individual member's tax liability under RSA 77-A, provided such other member is also subject to the tax imposed by this chapter. The tax liability of an individual member of a unitary business under RSA 77-A shall be determined by the following steps:

[Paragraph I effective until January 1, 2022 unless 2019, 346:426-429 are rescinded by a majority vote of the committee established in RSA 77-A:23-a; see also paragraph I set out below.]


I. Determine a combined nexus group denominator for the property, payroll and sales factors by adding the property, payroll and sales factor numerators of the individual members of the combined group subject to tax under RSA 77-A.

[Paragraph I effective January 1, 2022 unless 2019, 346:426-429 are rescinded by a majority vote of the committee established in RSA 77-A:23-a; see also paragraph I set out above.]


I. Determine a combined nexus group denominator for the applicable apportionment factors by adding the apportionment factor numerators of the individual members of the combined group subject to tax under RSA 77-A.

[Paragraph II effective until January 1, 2022 unless 2019, 346:426-429 are rescinded by a majority vote of the committee established in RSA 77-A:23-a; see also paragraph II set out below.]


II. Determine an individual apportionment percentage for each member of the combined group subject to tax under RSA 77-A by dividing such member's individual New Hampshire property, payroll and sales factor numerators by the combined nexus group denominators determined in paragraph I.

[Paragraph II effective January 1, 2022 unless 2019, 346:426-429 are rescinded by a majority vote of the committee established in RSA 77-A:23-a; see also paragraph II set out above.]


II. Determine an individual apportionment percentage for each member of the combined group subject to tax under RSA 77-A by dividing such member's applicable individual New Hampshire apportionment factor numerators by the combined nexus group denominators determined in paragraph I.
III. Apply the individual apportionment percentage, determined in paragraph II, to business profits tax liability of the water's edge combined group as determined in accordance with the provisions of RSA 77-A.

Source. 1993, 350:19, eff. July 1, 1993. 2019, 346:428.

Section 77-E:13-a

    77-E:13-a Employee Leasing Companies. –
I. For the purposes of the provisions of RSA 277-B:9, I(h), an employee leasing company and client company may elect to make the client company solely responsible for paying the tax imposed by RSA 77-E, and include in the client company's compensation portion of the enterprise value tax base those wages paid to the leased employees.
II. If the employee leasing company and the client company make such an election, the client company shall be eligible for the credit provided in RSA 77-A:5, X.
III. (a) In order to make the election under paragraph I, the client company and the employee leasing company shall file the forms required by the department pursuant to rules adopted by the commissioner under RSA 541-A.
(b) For an election to be effective for any given tax year, forms required to be filed with the commissioner shall be filed prior to the end of the employee leasing company's tax year.
(c) An election under this section shall remain in effect until the employee leasing company and the client company both notify the department of the termination of an election described in paragraph I on forms required by the department pursuant to rules adopted by the commissioner under RSA 541-A.
IV. For purposes of this section, the terms "employee leasing company" and "client company" shall have the same meaning as in RSA 277-B:2.

Source. 2015, 216:1, eff. July 1, 2015.

Section 77-E:14

    77-E:14 Distribution of Funds. –
I. The commissioner shall determine the additional amounts of revenue produced by an increase of .50 percent in the rate of tax imposed by RSA 77-E:2 for each fiscal year and shall certify such amounts to the state treasurer by October 1 of that year for deposit in the education trust fund established by RSA 198:39.
II. The commissioner shall make quarterly estimates of the amount of additional revenues that will be produced by the increase in tax rate for the next fiscal year and shall certify such amounts to the state treasurer for deposit in the education trust fund established by RSA 198:39. Such estimates shall be certified on June 1, September 1, December 1, and March 1 of each year.

Source. 1999, 17:22. 2001, 158:23, eff. July 1, 2001.