Decoupled from §168(k)
Static IRC as of December 31, 2018
No Individual Income Tax (I&D Repealed 2025) · BPT 7.5% + BET 0.50%
Federal Deduction Is Primary
22–35% Typical Reclassification
New Hampshire Building Value into Short-Life Assets
All Commercial Asset Classes
Statewide New Hampshire
The Basics
What Cost Segregation Does for New Hampshire Property Owners
A cost segregation study identifies building components, HVAC systems, specialty flooring, parking surfaces, interior finishes, exterior lighting, that qualify for accelerated depreciation on 5-, 7-, or 15-year schedules rather than the default 27.5-year (residential rental) or 39-year (commercial) building schedule. Front-loading those deductions increases first-year cash flow and lowers current-year federal taxable income.
In New Hampshire, the federal benefit works the same way it does anywhere, the One Big Beautiful Bill (OBBBA, P.L. 119-21) permanently restored 100% bonus depreciation for qualified property placed in service after January 19, 2025, and that federal benefit applies to New Hampshire properties in full. State-level treatment is where New Hampshire is different: New Hampshire’s Business Profits Tax (BPT) uses a static IRC conformity date of December 31, 2018, and New Hampshire has explicitly decoupled from federal §168(k) bonus depreciation (RSA 77-A:3-b, I) and IRC §181 qualified productions. Federal bonus depreciation must be added back on the BPT return; property depreciates via pre-bonus MACRS on the New Hampshire return.
Federal Deduction Is Where the Money Is
New Hampshire’s Tax Landscape: Why Cost Segregation Matters Here
Individual Income Tax
None. New Hampshire’s Interest and Dividends (I&D) tax was fully repealed effective January 1, 2025 (was 5% pre-repeal). No tax on wages, salaries, or self-employment income.
Business Profits Tax (BPT)
7.5% on business net income (Chapter 77-A), applies to businesses with gross receipts over $92,000.
Business Enterprise Tax (BET)
0.50% for 2026 (reduced from 0.55%) on enterprise value tax base (wages + interest + dividends paid).
Bonus Depreciation Conformity
Decoupled. New Hampshire follows the IRC as of December 31, 2018 for BPT purposes, and RSA 77-A:3-b, I explicitly disallows federal §168(k) bonus depreciation. Federal bonus depreciation is added back on the BPT return.
§179 Expensing
New Hampshire caps §179 at $500,000, well below the federal $2.56M cap for 2026. Federal §179 amounts above the New Hampshire cap require an addback and subsequent-year recovery on the BPT return.
No Sales Tax
New Hampshire is one of five states with no state sales tax. However, an 8.5% Meals and Rentals Tax applies to prepared food, hotel stays, and short-term rentals.
Property Tax
~2.1% effective on owner-occupied housing, the highest in New England and among the higher rates in the country. Property tax is the primary tax burden for New Hampshire residents given the absence of income and sales taxes. A separate lever from income tax; cost segregation operates on income tax through accelerated depreciation.
§481(a) Catch-Up
For New Hampshire properties owned more than a year without a study, an automatic accounting-method change (Form 3115 under Rev. Proc. 2015-13 and its updates) captures all missed depreciation into the current tax year at the federal level, no amended returns required.
Every Commercial Asset Class in New Hampshire
New Hampshire Property Types Where Cost Segregation Delivers
Manufacturing & Defense
BAE Systems (Nashua) is one of New Hampshire’s largest defense contractors; DEKA Research & Development (Manchester); Elbit Systems of America; plus general manufacturing along the southern-tier corridor. Specialty industrial property.
Tech & Office
Manchester and Nashua tech corridor, plus Dover and Portsmouth commercial. Fidelity (Merrimack), Oracle, Autodesk, and other tech operations.
Coastal & Port
Portsmouth Naval Shipyard (Kittery, ME border), Pease International Tradeport, Port of Portsmouth. Specialty industrial and logistics property.
Hospitality & Tourism
Seacoast (Hampton, Rye, North Hampton), Lakes Region (Winnipesaukee, Squam), White Mountains (North Conway, Bretton Woods, Waterville Valley) destination hospitality. Heavy FF&E in resort and specialty hospitality property.
Healthcare & Medical Office
Dartmouth-Hitchcock (Lebanon), Elliot Hospital (Manchester), Southern NH Health corridors.
Higher Education-Adjacent
UNH (Durham), Dartmouth (Hanover) research and academic-adjacent commercial property.
Multifamily
Southern New Hampshire multifamily development (Nashua, Manchester, Salem, Portsmouth, Dover). Rapid growth following Massachusetts commuter migration.
Retail & Mixed-Use
Cross-border retail (attracting Massachusetts and Maine shoppers due to NH’s no-sales-tax status), plus mixed-use developments in southern-tier towns.
Investment Residential
5+ unit properties eligible for cost segregation.
Not sure whether your New Hampshire property qualifies? Request a free benefit analysis, we’ll tell you honestly.
Credentialed. Independent. Nationwide.
Why The Ambrose Group?
MAI-Certified Appraisers, In-House Engineer
The IRS prefers engineering-based studies over rule-of-thumb estimates. Our in-house engineer conducts the analysis, reviews construction documents, and physically identifies reclassifiable components. Many providers estimate; we don’t.
IRS-Compliant Methodology
Every Ambrose study follows the IRS Cost Segregation Audit Techniques Guide (ATG, Publication 5653).
30+ Years of Nationwide Experience
Headquartered in Texas, serving New Hampshire and all 50 states.
Full Audit Support
Every study includes documentation and audit support at no additional charge.
CPA-Ready Reports
We deliver a complete reclassification package your CPA can apply directly, including the depreciation detail your CPA needs to file the New Hampshire BPT §168(k) addback and manage the $500K §179 cap adjustment.
Single-Property to Multi-State Portfolios
Whether you own one New Hampshire commercial building or a portfolio spanning multiple states, we scale the engagement to fit.
Real Numbers
What First-Year Savings Might Look Like in New Hampshire
Results depend on property type, cost basis, construction year, and applicable depreciation rates, and we run a free benefit analysis before you commit to a study so you can see projected numbers first.
As a reference point, an Ambrose Group engagement on a $2.9M commercial property delivered $657,692 in first-year depreciation increase and $230,192 in first-year tax savings. In New Hampshire specifically, the federal Year 1 savings apply fully; the New Hampshire BPT benefit is spread across the useful life of the reclassified components under pre-bonus MACRS (no BPT-level bonus stacking). Since New Hampshire has no individual income tax, the federal deduction is where essentially all Year 1 individual-side benefit lives.
Get Started
Free New Hampshire Cost Segregation Benefit Analysis
Tell us about your New Hampshire property, asset type, acquisition or construction cost, when it was placed in service, and we’ll run a free benefit analysis showing projected first-year depreciation and tax savings before you commit to a study.
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Right approach for your property type
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Federal benefit modeled + New Hampshire BPT timing considerations
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Clear read on the study’s projected ROI
Prefer to talk?
(713) 688-7733
The Ambrose Group headquarters, Jersey Village, TX (serving New Hampshire and all 50 states).
Request Your Free Analysis
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How It Works, New Hampshire & Nationwide
Our Cost Segregation Process
What Clients Say
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Cost Segregation in New Hampshire, Common Questions
Frequently Asked Questions
Does New Hampshire conform to federal bonus depreciation rules?
No. New Hampshire’s Business Profits Tax uses static IRC conformity as of December 31, 2018, and RSA 77-A:3-b, I explicitly disallows federal §168(k) bonus depreciation. Federal bonus depreciation is added back on the BPT return; property depreciates via pre-bonus MACRS. Your federal Year 1 tax savings from a cost segregation study are fully preserved.
What is New Hampshire’s §179 cap?
New Hampshire caps §179 at $500,000, well below the federal $2.56M cap for 2026. Federal §179 amounts above $500,000 require an addback and subsequent-year recovery on the BPT return.
Does New Hampshire have an individual income tax that a cost seg study reduces?
No. New Hampshire’s Interest and Dividends (I&D) tax was fully repealed effective January 1, 2025, and New Hampshire has never had a broad-based individual income tax on wages or self-employment income. New Hampshire’s Business Profits Tax (7.5%) applies to businesses with gross receipts over $92,000. For individual owners of pass-through real estate, the BPT is the primary state income tax lever cost segregation reduces.
What are New Hampshire’s Business Profits Tax and Business Enterprise Tax?
BPT is 7.5% on business net income for businesses with gross receipts over $92,000. BET is 0.50% for 2026 (reduced from 0.55%) on wages + interest + dividends paid by the business. Cost segregation reduces BPT through accelerated depreciation (though limited by §168(k) decoupling and $500K §179 cap). BET operates on a different base and is unaffected.
What New Hampshire commercial property types benefit most from cost segregation?
BAE Systems and DEKA specialty defense manufacturing, Manchester and Nashua tech corridor commercial, Portsmouth Naval Shipyard-adjacent industrial, Seacoast and White Mountains destination hospitality, and southern-tier multifamily. Specialty industrial and destination hospitality typically produce the strongest results.
Can I do a cost segregation study on a New Hampshire property I’ve owned for years?
Yes. A §481(a) adjustment via an automatic accounting-method change (Form 3115 under Rev. Proc. 2015-13 and its updates) lets you capture all missed depreciation from prior years into the current tax year without amending past returns. Especially valuable for long-held New Hampshire industrial, hospitality, and multifamily properties.
How do you do a cost segregation study on a New Hampshire property when you’re based in Texas?
Cost segregation is governed by federal tax law, so the methodology is identical regardless of state. Our engineer works either through an in-person New Hampshire site visit or, for well-documented properties, a virtual site inspection using high-definition video, construction documents, and interactive tools. Both are IRS-compliant.
Does New Hampshire’s high property tax rate affect the cost seg decision?
Not directly. Cost segregation reduces income tax through accelerated depreciation, not property tax. However, New Hampshire’s ~2.1% effective property tax rate, the highest in New England and among the highest in the country, is a significant factor in overall New Hampshire property economics. Your CPA should model both income tax (BPT) and property tax when planning.
What documentation do you need for a New Hampshire cost segregation study?
Purchase or construction cost documentation, a current depreciation schedule from your CPA, construction plans or specs (when available), any prior appraisals, and, for renovation studies, improvement records. Because New Hampshire decouples from bonus depreciation and caps §179 at $500K, your CPA will need the detailed asset schedule to file the BPT addback. We provide it as part of the standard deliverable.
Can you handle New Hampshire multi-property portfolios? How long does a study take?
Yes, we regularly run cost segregation studies across multi-state and New Hampshire-only portfolios. Common for southern-tier multifamily portfolios (Nashua, Manchester, Portsmouth), White Mountains and Seacoast hospitality operators, and defense/tech industrial operators. Typical study timeline is 4–8 weeks per property; complex defense manufacturing and destination hospitality take longer proportional to the specialty-equipment and FF&E cataloging effort. [VERIFY typical turnaround range]
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Talk to Trusted Cost Segregation Consultants
We live by our motto: “Everything we do is driven by the relationship, not the transaction”, and we mean it. Whether you have a New Hampshire property to evaluate or a multi-state portfolio to review, we’re here to help. Contact our real estate firm.