relative to the application of the Internal Revenue Code to provisions of the business profits tax.

HB 1668 updates New Hampshire's business profits tax to automatically align with federal Internal Revenue Code changes starting in 2027, replacing the current system that uses a fixed 2018 tax code. It requires businesses to calculate deductions under the current federal code (with a $500,000 cap on certain property deductions for assets placed in service after 2026) and mandates the state tax commissioner to report biennially on federal tax changes affecting New Hampshire. This bill directly affects businesses subject to New Hampshire's business profits tax by changing how their tax calculations integrate with federal law. The policy shift eliminates the need for annual state legislative adjustments to match federal changes, though it may require faster state tax department responses to federal updates. The changes take effect for taxable periods beginning January 1, 2027.