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

   1. (1) “Aircraft ready for flight” means aircraft which are:

      1. a. Owned or acquired through rental or lease;
      2. b. In the possession of the business organization; and
      3. c. Available for service on the business organization's routes or charters;
   2. (2) “Commercial airlines” means business organizations which operate aircraft in the income producing activity of carrying passengers or cargo for remuneration;
   3. (3) “Cost of aircraft by type” means the average original cost, as calculated by the business organization, by type of aircraft ready for flight;
   4. (4) “Departures” means all takeoffs whether they are regularly scheduled service or charter flights that occur during the taxable period excluding takeoffs where the sole purpose of the departure is the maintenance or ferrying of the aircraft;
   5. (5) “Mobile payroll” means the total compensation determined in accordance with Rev 304.03 for flight crew and maintenance facility personnel;

   6. (6) “Mobile property” means:

      1. a. Aircraft;
      2. b. Engines;
      3. c. Transmissions;
      4. d. Electronic components; or
      5. e. Other parts of an aircraft capitalized or inventoried for federal income tax purposes or which generally move from location to location in the organization's route system;
   7. (7) “NH departures” means departures occurring from within the geographical confines of New Hampshire;
   8. (8) “Non-mobile payroll” means the total compensation determined in accordance with Rev 304.03 for all employees of the business organization other than flight crew and maintenance facility personnel;
   9. (9) “Non-mobile property” means tangible personal property used in the operation of a commercial airline and permanently located at a particular place of business;
   10. (10) “Non-transportation sales” means all receipts of the business organization other than those classified as transportation sales; and
   11. (11) “Transportation sales” means the receipts from transporting passengers, freight, or mail and the sale of products or services associated with such transportation such as, but not limited to, liquor sales, and audio headset or pet crate rentals.
2. (b) Commercial airlines shall apportion their income to New Hampshire using the apportionment provisions contained in RSA 77-A:3, Rev 304.02, Rev 304.03, Rev 304.04, and Rev 304.05, subject to the adjustments in paragraphs (c), (d), and (e), below.

3. (c) The property factor's components shall be calculated utilizing the following provisions:

   1. (1) The factor shall be the sum of average New Hampshire mobile property and average New Hampshire non-mobile property, divided by the sum of average mobile property everywhere and average non-mobile property everywhere, as expressed by the formula:

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   2. (2) Average New Hampshire non-mobile property and average non-mobile property everywhere shall be calculated using the provisions of Rev 304.02;
   3. (3) Average mobile property everywhere shall include the average value, as provided in Rev 304.02(j), of all mobile property owned, rented, and used by the business organization except that aircraft ready for flight shall be included based on the cost of aircraft by type;
   4. (4) Departures of aircraft shall be weighted based upon the cost of aircraft by type; and

   5. (5) Average New Hampshire mobile property shall equal average mobile property everywhere multiplied by the quotient of New Hampshire departures divided by total departures, as expressed by the formula:

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4. (d) The payroll factor's components shall be calculated utilizing the following provisions:

   1. (1) The factor shall be the sum of New Hampshire mobile payroll and New Hampshire non-mobile payroll, divided by the sum of mobile payroll everywhere and non-mobile payroll everywhere, as expressed by the formula:

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   2. (2) New Hampshire non-mobile payroll and non-mobile payroll everywhere shall be calculated using the provisions of Rev 304.03;
   3. (3) Mobile payroll everywhere shall include the total compensation of the business organization's flight crews and maintenance facility personnel;
   4. (4) Departures of aircraft shall be weighted based upon the cost of aircraft by type; and

   5. (5) New Hampshire mobile payroll shall equal mobile payroll everywhere multiplied by the quotient of New Hampshire departures divided by total departures, as expressed by the formula:

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5. (e) The sales factor's components shall be calculated utilizing the following provisions:

   1. (1) The sales factor shall be the sum of New Hampshire transportation sales and New Hampshire non-transportation sales, divided by the sum of transportation sales everywhere and non-transportation sales everywhere, as expressed by the formula:

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   2. (2) New Hampshire non-transportation sales and non-transportation sales everywhere shall be calculated using the provisions of Rev 304.04 and Rev 304.05;
   3. (3) Transportation sales everywhere shall include the total transportation sales of the business organization; and
   4. (4) New Hampshire transportation sales shall include the receipts from all passengers and cargo enplaned in New Hampshire.
6. (f) The business organization shall maintain the records necessary to substantiate the departures by type of aircraft and the receipts for passengers and cargo that enplaned in New Hampshire and everywhere.

Source. #5910, eff 10-14-94; ss by #6853, eff 9-23-98; ss by #8709, eff 8-25-06; ss by #10758, eff 1-16-15; ss by #13177, eff 3-6-21; ss by #14231, eff 4-3-25 (formerly Rev 304.07), EXPIRES 4-3-35