CONCORD — The Business and Industry Association, New Hampshire’s statewide chamber of commerce, joined a group of legislators and business owners Thursday afternoon to applaud Governor Chris Sununu as he signed Senate Bill 3 into law.

SB 3, an important business tax “fix” first flagged by BIA, exempts companies that received federal Paycheck Protection Program loans, and then had those loans forgiven, from being taxed under the state’s business profits tax. Congress acted late in 2020 to ensure revenue from PPP loan forgiveness would not be taxed at the federal level.

“This was an important legislative solution BIA alerted policy makers to in the early days of the session and promoted until final passage,” said BIA President Jim Roche. “Absent this legislation, tens of thousands of New Hampshire companies struggling to get back on their feet post-pandemic would have been taxed on stimulus dollars they received that in many cases was the difference between staying in business or closing forever.”

The bill signing was held in downtown Concord in front of the Barley House, a restaurant that is among New Hampshire businesses assisted by PPP loans during the COVID-19 pandemic. The bill, which had broad bipartisan support and became effective with the governor’s signature, was signed in time for companies to take advantage of before filing second quarter taxes due June 15.

“We’re grateful to Senator Jeb Bradley, the prime sponsor of the bill, for guiding SB 3 through the legislative process,” Roche said. “We thank Governor Sununu and legislators from both parties who understood the unfairness of taxing this stimulus money and who voted in favor of the bill. And BIA especially wants to recognize and thank the many member companies who reached out to state policy leaders to tell their stories and support this legislation.”

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