New Hampshire Business: Winners and Losers Under the New Tax Plan

The new law also doubles the standard deduction, making it likely that fewer business owners will itemize on their returns, and that could have a negative impact on things like charitable donations, Burke adds.

It also caps the deduction for mortgage interest at $750,000 of home loan value, compared to the current $1 million, leading some to fear reduced incentive to buy and build homes and a negative impact on the housing industry. But financial experts say that will have less impact in NH than in states with higher-priced homes.

“At the end of the day, higher income people are going to own a home and spend what they want to spend regardless of policy,” says Steve Wamhoff, director of tax policy at the Institute on Taxation and Economic Policy in Washington D.C. “Lower income people might be more affected. I find it unlikely that it would have a huge impact.”

Further, the new tax code caps deductions for state and local taxes at $10,000—a factor for those who do business in more than one state and a consideration for whether to remain a pass-through entity, according to Perrella.

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