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NH hearing on HB155 spotlights split views over small tax cut and $26M revenue hit
Summary
Lawmakers and public witnesses debated House Bill 155, which would lower the business enterprise tax from 0.55% to 0.50%. Supporters said the change aids small, staff-heavy employers and boosts competitiveness; opponents warned of an estimated $26 million yearly revenue loss and called for fiscal safeguards before cuts proceed.
Representative Joe Sweeney (prime sponsor) opened a public hearing on House Bill 155, proposing to reduce New Hampshire's business enterprise tax (BET) rate from 0.55% to 0.50%, with an effective date tied to the 2028 fiscal year. Sweeney said the reduction is intended to continue a decade-long effort to lower business tax burdens, provide relief for small employers and add a tool for recruiting firms to the state.
Committee members pressed the sponsor on measurable goals and accountability. Senators asked whether the bill includes mechanisms to track business recruitment or an "off-ramp" if the revenue impacts are worse than expected; the sponsor said any future legislature could revisit the rate and noted the bill's delayed effective date (implementation 12/31/2027; effective 01/01/2028).
Several committee members questioned the size of the average benefit. The committee discussed analyses showing an average annual savings per filer in the low hundreds of dollars (figures cited during testimony ranged from roughly $300 to $565 depending on the source and assumptions). The sponsor and supporters said the BET is payroll-based and that some employers who cannot claim a BPT credit would see direct relief; opponents said the estimated savings are too small to spur hiring or meaningful investment.
Fiscal experts and public witnesses offered contrasting views. Scott Shepherd presented stress-testing analysis that recommended establishing reserve targets and running recession scenarios before making permanent rate cuts. Multiple public witnesses, including advocates from MomsRising, the Grind State Organizing Project, and local residents, urged the committee to oppose HB155 and cited a fiscal-note estimate of about $26,000,000 in annual revenue loss if the reduction takes effect. Testimony warned the reduction could add pressure to funding for childcare, education, mental-health services and municipal budgets, potentially shifting costs to property taxpayers.
Business-advocacy witnesses supported the cut as a competitiveness measure that disproportionately affects small and early-stage firms. Greg Moore of Americans for Prosperity and other supporters argued the prior series of business tax reductions has helped recruit employers and that continuing the trend signals New Hampshire's pro-business direction.
The hearing produced neither a floor vote on HB155 nor a committee recommendation on the bill; testimony closed and the chair moved on to other bills. The committee repeatedly urged the sponsor to consider fiscal guardrails and additional modeling, and several members signaled concern that revenue timing (including recent draws on the rainy day fund) merited caution before permanent tax reductions.
