NH's Pandemic Loans Don't Incur Business Profits Tax

Loans provided by New Hampshire to businesses in response to the novel coronavirus pandemic do not need to be included in income for business profits tax filings, the state Department of Revenue Administration said in guidance released Tuesday.

Companies that file business profits tax returns do not have to include state-level loans in income, the guidance said, unless the loan was forgiven. However, companies that file business enterprise tax returns must include state-level relief used to pay worker compensation, interest and dividends in their tax base, the guidance said.

For business profits tax filers, the guidance said, all federal relief is likely subject to tax unless it is a loan, and for business enterprise tax filers, federal relief used for employee compensation is also subject to tax and should be included in the enterprise tax base.

--Editing by Tim Ruel.

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