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Tax exemption for new businesses?

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Several legislators are sponsoring 2016 bills that would exempt new businesses from the business profits tax and the business enterprise tax.

Rep. Jim McConnell is the primary sponsor of HB 1254, which would create a fifteen year tax exemption for manufacturing businesses that start up or relocate to Coos, Grafton, Carroll, Sullivan, or Cheshire county.

HB 1258, sponsored by Rep. Benjamin Baroody and Rep. Linda DiSilvestro, would provide a three year tax exemption for new businesses with at least four employees.  The businesses would need to show a hiring preference for New Hampshire residents and partner with local colleges to offer internships.

Rep. Eric Estevez is the primary sponsor of a similar bill, but the text of that bill is not yet public.

The Department of Revenue Administration states there is no way to estimate how many new businesses would start in New Hampshire in response to these tax exemptions, but the Department states the bills would certainly lower state revenue.

Supporters of business tax cuts generally argue that tax cuts and exemptions will increase state revenue by increasing economic activity in the Granite State overall.

Do you think New Hampshire should exempt new businesses from some taxes?  Comment below!

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