The New Hampshire House and Senate stopped shy of cutting a major state business tax outright Thursday, but did pass a plan to lift the tax’s filing threshold, and spend $2.5 million to lift Medicaid provider rates at state nursing homes.

“What you have before you is a bill that will protect our nursing homes, and protect our small businesses,” said Republican Sen. Tim Lang of Sanbornton.

Under the bill, the threshold on the state business and enterprise tax would be lifted from $297,000 to $400,000, a move GOP leaders expect will exempt about 4,000 small businesses from having to pay the tax.

The bill’s inclusion of money to boost provider rates for nursing homes was a policy the Senate prioritized, and its inclusion in the bill earned the plan some Democratic support. But that evaporated when Republicans in the House pushed to add a trigger to the bill to automatically reduce the rate of the tax when collections from the levy far exceeded estimates.

“The rate cuts are reckless and irresponsible and would potentially cost hundreds of millions of dollars in the future,” said Sen. Cindy Rosenwald of Nashua.

Under the plan, the tax rate, which now stands at 0.55%, would automatically drop by .005% anytime collections on the tax surpassed estimates by $100 million until the rate of the levy reached 0.25%, equivalent to the rate when the tax was created in 1993. Any reduction would also require the state’s Rainy Day Fund to hold a strong balance.

Cutting business taxes has been a focus for GOP leaders in Concord for years, and they’ve dropped the rate of the Business Enterprise Tax four times since 2016.

Lebanon and Israel provisionally agreed in Washington to a new ceasefire Wednesday. But hours later Israel continued attacks and the militant group Hezbollah said it rejected any ceasefire that did not start with the withdrawal of Israeli forces from Lebanese territory.

The fighting appeared to jettison immediate prospects of a wider ceasefire between the United States and Iran. Iran has said it will not agree to a ceasefire with the U.S. and Israel unless there is one in Lebanon.

UNIFIL, the U.N. peacekeeping operation for Lebanon, announced Thursday that one of its peacekeepers had been killed and others wounded when mortars hit their position near Marjayoun in southeastern Lebanon.

A U.N. source said the mortars appeared to have come from Hezbollah. The attack came as Israel and Lebanon were negotiating a ceasefire in Washington. The person asked not to be identified because they were not authorized to speak publicly on the issue. Hezbollah has been targeting Israeli army installations in the vicinity.

Iranian Revolutionary Guard Corps commander Esmail Qaani was quoted by Iranian state media Thursday saying that Israel must withdraw to pre-war positions as the first step in a ceasefire with Lebanon. Before the U.S. and Israel attacked Iran on Feb. 28, Israel held five positions across the border in Lebanon. It now occupies large parts of the south of the country.

The U.S. does not speak directly to Hezbollah, which it classifies as a terrorist organization. Lebanon’s negotiations in Washington were carried out without direct inclusion of the Iran-backed group.

Lebanese President Joseph Aoun said Thursday that the ceasefire would come into force within 24 hours of all concerned parties approving it, especially Hezbollah.

A Hezbollah official told NPR that Hezbollah officially informed the Lebanese president that it would not accept any ceasefire that did not begin with the withdrawal of Israeli forces from south Lebanon.

The official asked to remain anonymous because he was not authorized to speak publicly on the issue.

Israeli defense minister Israel Katz said Israel was demanding the creation of what it called a de-militarized zone within Lebanon while being able to continue attacks against Iran-backed Hezbollah. He said Israel would not be withdrawing from the south.

Jawad Rizkallah contributed reporting from Beirut.

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