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Frequently Asked Questions > What is the Business Profits Tax?

What is the Business Profits Tax (BPT)?
An 8.5% tax is assessed on income from conducting business activity within the state. For multi-state businesses, income is apportioned, using a weighted sales factor of 2 and the payroll and property factors. Organizations operating a unitary business must use combined reporting in filing their NH return.

Who pays BPT?
Every business organization, organized for gain or profit carrying on business activity within the state is subject to this tax. However, organizations with $50,000 or less of gross receipts from all their activities are not required to file a return.

When is the BPT return due?
Corporate and combined returns are due on the 15th day of the 3rd month following the end of the taxable period. Proprietorship, partnership and fiduciary returns are due on the 15th day of the 4th month following the end of the taxable period.

Do I have to make estimated payments?
Four estimates are required, paid at 25% each on the 15th day of the 4th, 6th, 9th & 12th month of the taxable period, for any tax liability greater than $200.

Am I required to pay estimates during my first year?
Yes, if the tax liability is greater than $200, but you mayqualify for an exception from the penalty under RSA 21-J:32, IV(d) by filing Form DP-2210/2220.

Who do I contact with questions?
Call Central Tax Services at (603) 230-5920.

I have a proprietorship, can I split the rental income between my wife and myself?
No, not unless two separate and distinct proprietorships exist. See NH Code of Administrative Rules, Rev. 307.04(e) under the "Laws, Rules & TIRs" page of our website.

Do I have to file a BPT return if my installment sale income is less than $50,000?
The filing requirement is determined in the year of the sale for all years irrespective of the years in which income is received. So, if the gross business income is greater than $50,000 in the year of the sale, regardless of the amount received in subsequent years, you are required to file until all installments are reported. See NH Code of Administrative Rules, Rev 302.07(f) under the "Laws, Rules & TIRs" page of our Web site.

Are Sub-S corporations treated differently in New Hampshire than C corporations for tax purposes?
No, Sub-S corporations are treated the same as C Corporations. The flow-through items on Schedule K are incorporated into corporate income when determining taxable business profits.

Do all Federal Schedules need to be attached to returns?
Yes. All federal schedules must be included with original and amended returns. Proprietorships must include Schedules C, D, E, F, 4797, 6252, if applicable. For more information, see the"General Instructions" under the applicable tax year on the "Forms" page of our website.

How do I calculate the Net Operating Loss (NOL)?
For purposes of calculating the amount of any NOL deduction allowed under RSA 77-A:4, XIII for tax periods ending on or after July 1, 2005, section 172 of the Internal Revenue Code in effect on December 31, 1996 shall be followed. For tax periods ending before July 1, 2005:

(1) Any loss amount shall first be carried back to those tax years required by the Internal Revenue code without application of the election in section 172(b)(3) and applied to any income in the carryback tax years, before any remaining loss is carried forward as a NOL deduction.

(2) The carryback of losses as provided in (1) above shall result in neither an allowable NOL deduction in the carryback years nor a refund of previously paid taxes. An Amended return filed for such purposes shall be prohibited.

(3) The business organization's failure to carryback NOLs and apply them to the income of prior profitable years shall result in the loss being presumed to be fully absorbed in the carryback year(s).

How is the NOL carryforward computed?
An NOL shall be apportioned the the year incurred according to RSA 77-A:3. An NOL may be carried forward for the following number of years:

Tax Year Ending On or Before
5 years
Losses Incurred
Tax Year Ending On or After
10 years
Losses Incurred
On or After 07/01/1997

What are the maximum amounts of carryforward allowed?
See Chart below:

Date: Maximum Amount:
On or before 6/30/2003  $ 250,000
7/1/2003 - 6/30/2004 $ 500,000
7/1/2004 - 6/30/2005 $ 750,000
on or after - 7/1/2005 $1,000,000

Is the DP-132, NOL Deduction Form, required?
Yes, for the year the NOL deduction is used. You must show proof of the loss year being claimed.

Can I amend for an NOL and get a refund?
No. NOLs must be carried back for 3 years only for purposes of determining the carry forward amount for tax periods ending before July 1, 2005. See "How do I calculate the Net Operating Loss (NOL)?" above.

Can the NH Community Development Finance Authority (CDFA) credit be taken against BPT & Business Enterprise Tax?
Yes. For more information call the Department of Revenue Administration's Central Tax Services at (603) 230-5920 or visit the NH CDFA's website at

When filing a 2210/2220, must the same exception be used in all four quarters?
No, each quarter stands on its own.

What is a unitary business?
A unitary business is defined by RSA 77-A:1 XIV as "one or more related business organizations engaged in business activity both within and without this state among which there exists a unity of ownership, operation, and use or an interdependence in their functions. " The Department's administrative rules Rev 300, define each of these terms: Unity of Ownership; Unity of Operation; Unity of Use; Interdependence in their function. Go to the "Laws, Rules & TIRs" page of our website, where Rev 300 and other administrative rules and laws are listed.

What does nexus mean?
Whether an entity is required to file business tax returns depends on whether it has nexus with a state. Nexus is defined as some definite link, or minimum connection, between the state and the entity it seeks to tax. If you are an out-of-state business that sells or leases tangible personal property in this state, refer to N.H. Code of Admin. Rule, Rev. 304.01 under the "Laws, Rules & TIRs" page of our website for an illustrative listing of those activities that create nexus.

How does New Hampshire treat the federal Special Depreciation Business Expense?
The New Hampshire Legislature has not changed the current business tax law to conform with the federal tax law changes. The Internal Revenue Code (IRC) reference remains the Code in effect on December 31, 2000. Therefore, if these changes are used on your federal filing, business taxpayers must recalculate their New Hampshire gross business profits. Since, under current New Hampshire law, the special depreciation bonus expense and the additional IRC Section 179 expense is not allowable, business taxpayers will have to adjust the taxable income reported on their federal return before reporting their gross business profits on their New Hampshire business tax return.

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