New Hampshire Code of Administrative Rules
Rev - Department of Revenue Administration
Chapter Rev 300 - BUSINESS PROFITS TAX
Part Rev 307 - RETURNS, DECLARATIONS, AND EXTENSIONS
Section Rev 307.13 - Qualified Regenerative Manufacturing Companies

Universal Citation: NH Admin Rules Rev 307.13

Current through Register No. 13, March 27, 2025

(a) For purposes of this section, the following definitions shall apply:

(1) "Active regenerative manufacturing business" means "active regenerative manufacturing business" as defined in RSA 77-A:1, XXX(c); and

(2) "Qualified regenerative manufacturing company (QRMC)" means "qualified regenerative manufacturing company" as defined in RSA 77-A:1, XXX. The term does not include a combined group.

(b) To elect to be treated as a QRMC with respect to any taxable period, an enterprise shall:

(1) Complete and file Form AU-209, "Qualified Regenerative Manufacturing Company (QRMC) Election," with the department on or before the fifteenth day of the third month immediately following the end of the taxable period; and

(2) Conduct active regenerative manufacturing business for at least 75 percent of its business activities over the course of the taxable period, in accordance with (e) below.

(c) The election provided in (b)(1) above shall be effective for the taxable period for which it is made and for all succeeding taxable periods until:

(1) The enterprise revokes the election pursuant to RSA 77-A:5-c, VI(a), including by filing the revocation with the department;

(2) The enterprise ceases to satisfy the requirements of (b)(2) above; or

(3) The election expires pursuant to RSA 77-A:5-c, II.

(d) The enterprise shall file the revocation provided in (c)(1) above with the department on or before the fifteenth day of the third month of the taxable period to be effective for such taxable period. If the revocation is filed after the fifteenth day of the third month of the taxable period, it shall be effective for the following taxable period.

(e) Subject to (f) below, the enterprise shall only satisfy the requirements of (b)(2) above if the following fraction equals at least 75 percent for the taxable period:

(1) The numerator of the fraction is the total compensation paid by the enterprise to employees for active regenerative manufacturing business during the taxable period; and

(2) The denominator of the fraction is the total compensation paid by the enterprise to employees for all business activities during the taxable period.

(f) If an employee conducts any business activity other than active regenerative manufacturing business during the taxable period, the enterprise shall allocate the compensation paid to the employee based on the amount of time the employee spent conducting active regenerative manufacturing business as compared to all other business activities during the taxable period.

(g) The amount of compensation paid to employees shall be determined in accordance with Rev 301.10 and Rev 304.03(a)-(h).

(h) Every enterprise electing treatment as a QRMC shall, with respect to each taxable period, complete and file one of the following with the department on or before 30 days following the enterprise's filing of its federal income tax return with the Internal Revenue Service:

(1) Form AU-210, "Qualified Regenerative Manufacturing Company (QRMC) Report"; or

(2) A "Cover Sheet for QRMC Federal Return," including a copy of its federal income tax return as filed with the Internal Revenue Service.

(i) In the case of a combined group which would otherwise include an enterprise electing treatment as a QRMC, the combined group shall:

(1) Determine its taxable business profits as if the enterprise did not exist, including, but not limited to, by excluding the business activities and apportionment factors of the enterprise; and

(2) Disregard all transactions between any member of the combined group and the QRMC that would result in the transfer of income from the combined group to the QRMC, so that any such income shall continue to be recognized as income of the combined group, and not the QRMC.

(j) Every enterprise electing treatment as a QRMC shall keep such records as may be necessary to substantiate QRMC status, including, but not limited to, the amount of compensation paid to employees and whether the allocation required by (f) above is reasonable, in accordance with RSA 77-A:11.

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