States Seek to Extend Tax Codes Beyond ‘Water’s Edge’ in 2024

Legislative work usually grinds to a halt during the holidays in New Hampshire, but state Rep. Thomas Schamberg has spent the last few weeks whipping votes for a bill overhauling the state’s business profits tax.

Schamberg, a Democrat, concedes his bill (H.B. 121) abandoning New Hampshire’s “water’s edge” income reporting rule and replacing it with a worldwide combined reporting requirement is a long shot. A mandatory worldwide reporting system would calculate a business’s taxes based on global income attributable to a particular jurisdiction—permitting the state to reach beyond US borders, or the “water’s edge.”

Adopting the nation’s ...