Bill’s signing by Gov. Hassan after passage by the legislature closes a loophole and allows NH businesses to keep BET tax credit while partnering with staffing vendors
(July 13th, 2015) The National Association of Professional Employer Organizations (NAPEO) today hailed the enactment of a New Hampshire bill that will allow small business clients of professional employer organizations (PEOs) to take advantage of the state's business enterprise tax (BET) credits. Governor Maggie Hassan (D) signed it into law last week.
"This legislation is a tremendous victory for New Hampshire businesses because it allows them to reap both the benefits of working with a PEO and the benefits of the state's BET credit," said NAPEO President & CEO Pat Cleary in a statement last week. "We truly commend Governor Hassan, Senate President Pro Tempore Sharon Carson (R-Londonberry), Senate Majority Leader Jeb Bradley (R-Wolfeboro), and Rep. Jackie Cilley (D-Barrington) for working together in a bipartisan manner to get this done."
House sponsor Rep. Jackie Cilley echoed these comments.
"I'm delighted that a very pro-business bill has been supported by a bipartisan majority of legislators and has now been signed into law by Gov. Hassan. SB 211 allows our New Hampshire small businesses to do what they do best -- providing products and services to customers – while avoiding unintended tax liabilities for applying the expertise of PEOS to their staffing challenges."
"This is the type of bi-partisan, pro-growth legislation that I welcome working on and seeing implemented in our state. This contrasts sharply with the tactics we have seen recently from one specific business willing to use blackmail of threatening to move out of state if not given special tax advantages," said Cilley, referring to recent lobbying efforts by fmr. GOP Gov. Craig Benson to secure a tax loophole for Planet Fitness, a business in which he has a significant interest.
"From the beginning, this has been a fairness issue. The tax credits were intended to help businesses in New Hampshire grow and thrive, and those growing businesses shouldn't be penalized for partnering with a PEO for payroll, benefits and other HR services," said Bob Burbidge, chairman of NAPEO's New England Leadership Council and CEO of Genesis HR Solutions in last week's statment. "We're thrilled that this wrong has been righted."
Before SB 211's becoming law, all businesses in New Hampshire paid the BET, which is calculated as a percentage of employee payroll. Businesses could then apply the amount paid in BET as a tax credit against business profits. Since PEOs in New Hampshire are considered the employer of record, only they have been able to take the credit against profits, while the NH companies with whom they work were barred from claiming any credit for their business enterprise tax against their business profits tax, something allowed to virtually any other business in our state who has employees. PEOs work with more than 250 small and mid-sized businesses in the state, businesses that will now be able to take advantage of a policy designed with all businesses in mind.
About Jackie Cilley: Born in Berlin, New Hampshire, Jackie Cilley was raised with four siblings in a third-floor walk-up tenement before graduating from Berlin High School. She earned bachelor's and master's degrees from UNH and has served as an adjunct professor at the Whittemore School of Business and Economics since matriculating from there in 1985. In 2004 she ran for a seat in the New Hampshire House of Representatives and won, serving one term in the House before being elected twice to the New Hampshire Senate, representing the 6th District from 2006 - 2010. In 2012, she ran an unsuccessful campaign for the Democratic nomination for Governor, losing to Gov. Hassan. She was re-elected to the New Hampshire House in 2014 where she serves on the Committee on Executive Departments and Administration. Rep. Cilley was recently named by veteran NH political reporter John DiStaso as one of the "'Most wanted' NH Democrats for the 2016 presidential campaign.