The National Federation of Independent Business said on Apr. 28 that proposed changes to the Business Enterprise Tax could provide significant relief for small businesses in New Hampshire.
These proposals matter because many small businesses have faced economic challenges over the past six years, including slow recovery from the COVID-19 pandemic and ongoing difficulties hiring qualified workers. According to the National Federation of Independent Business, nearly a third of small business owners reported sales down by 25 percent or more from pre-pandemic levels, and most employers seeking new staff say they receive few or no qualified applicants.
Two main proposals are being considered this year: reducing the BET rate from 0.55% to 0.50%, and increasing the filing threshold from $298,000 to $375,000. The organization explained that raising this threshold would exempt more than 2,000 additional small businesses from paying the tax, saving them collectively over $2 million.
The BET is calculated based on a business’s enterprise value—essentially its payroll and certain other payments—which means it functions largely as a payroll tax for many smaller companies. By exempting more employers through a higher threshold, these businesses can invest more in their workforce through higher wages or better benefits.
The National Federation of Independent Business strengthens New Hampshire communities by supporting the small business sector according to its official website. The group represents more than 1,700 small business members according to its official website and advocates for owners through education and legislative engagement according to its official website. Its advocacy extends across New Hampshire with efforts focused on advancing priorities at the state legislature according to its official website.
The organization maintains nonprofit and nonpartisan status according to its official website. It supports members with legislative backing as well as economic reports and policy updates according to its official website.
Looking ahead, NFIB New Hampshire encourages lawmakers “to continue the tax reform progress that began a decade ago and make the Granite State a better place for small business.”
