Ways and Means

HB 1102 increases two key limits on New Hampshire's research and development (R&D) tax credit program. It raises the annual cap on total credits claimed by all businesses from $7 million to $10 million per fiscal year, and increases the maximum credit an individual business can claim from $50,000 to $100,000. This bill directly affects businesses conducting qualifying R&D activities in New Hampshire, allowing them to claim larger credits against their state business taxes. The changes take effect July 1, 2026, and do not require new state funding.

HB 1194 allows New Hampshire insurance companies to use credits for assessments paid to the Life and Health Insurance Guaranty Association (NHLHIGA) to reduce their state tax liability. Specifically, insurers can offset up to 20% of eligible assessments annually for five years, but this rate drops to 10% if total credits exceed $10 million in a single year. The bill prohibits carrying forward unused credits and requires insurers to repay any refunds received from the NHLHIGA to the state. This policy directly affects insurers participating in the NHLHIGA, which protects policyholders if an insurer becomes insolvent. The change limits potential state revenue loss during years with large NHLHIGA assessments.

HB 155 reduces New Hampshire's business enterprise tax (BET) rate from 0.55% to 0.50% for tax years ending on or after December 31, 2026. This directly affects businesses that pay the BET, calculated on their taxable enterprise value. The rate change takes effect July 1, 2025, applying permanently to all future tax periods meeting the end-date requirement. The bill does not alter other tax provisions but will decrease state revenue from this tax, with estimated impacts of $4.3 million in fiscal year 2026.

HB 1433 creates a tax credit for New Hampshire businesses that create or expand child care programs. Businesses can claim a credit equal to 50% of qualifying expenses for building new facilities or expanding existing ones by at least 12 child care seats not available before January 1, 2027. The credit applies against business profits or enterprise taxes and can be carried forward for up to four years if not fully used in a given year. To qualify, businesses must create or expand licensed child care seats (either directly or through third parties) and submit an application to the Department of Revenue Administration.

HB 1597 raises the maximum deductible amount for business property purchases from $500,000 to $2.5 million for property placed in service on or after January 1, 2027. This directly affects businesses making significant capital investments in equipment or property, aligning New Hampshire’s tax code with federal deduction limits. The key provision modifies the expense deduction cap under the Business Profits Tax statute, allowing larger upfront deductions for qualifying assets. The bill takes effect 60 days after passage, with potential revenue impacts noted as indeterminable starting in fiscal year 2027.