Post by Logan on Feb 18, 2016 23:09:36 GMT -6
CONCORD — Businesses would be allowed to depreciate up to $500,000 a year for a purchase instead of taking the tax reduction over a longer period of time under a bill the Senate passed Thursday, 15-8.
The change in state business tax law — which caps depreciation at $25,000 a year — would align New Hampshire with the federal tax code which was changed to allow the $500,000 one-time depreciation in the budget agreement reached by President Obama and House Speaker Paul Ryan last year.
Supporters of Senate Bill 552 said it would not only make the state tax system more business friendly, it could also spur companies to purchase equipment from other local businesses.
“Aligning this tax policy with current federal standards is a common sense change to join the rest of New England in encouraging small businesses to grow and expand in New Hampshire and will have no effect on the revenue coming into the state over the long term,” said the bill’s prime sponsor Sen. Andy Sanborn, R-Bedford. “By making this change, we also encourage capital investment in our state which leads to a stronger economy.”
See more at: www.unionleader.com/article/20160218/NEWS0621/160219004
The change in state business tax law — which caps depreciation at $25,000 a year — would align New Hampshire with the federal tax code which was changed to allow the $500,000 one-time depreciation in the budget agreement reached by President Obama and House Speaker Paul Ryan last year.
Supporters of Senate Bill 552 said it would not only make the state tax system more business friendly, it could also spur companies to purchase equipment from other local businesses.
“Aligning this tax policy with current federal standards is a common sense change to join the rest of New England in encouraging small businesses to grow and expand in New Hampshire and will have no effect on the revenue coming into the state over the long term,” said the bill’s prime sponsor Sen. Andy Sanborn, R-Bedford. “By making this change, we also encourage capital investment in our state which leads to a stronger economy.”
See more at: www.unionleader.com/article/20160218/NEWS0621/160219004