Budget & Taxes (Revenue)

HB 1599 removes the current 10-year limit on businesses carrying forward net operating losses (NOLs) after a loss year, allowing these losses to be used indefinitely to offset future profits. This directly affects businesses that incurred losses in prior tax years, particularly those with large NOLs that would have expired under current law. The key change amends state tax code to align with federal rules, eliminating the requirement to use NOLs within a decade. While the fiscal note indicates this could reduce state revenue (as businesses may offset future profits with older losses), the exact impact depends on when businesses generate sufficient profits to utilize these carryforwards.

HB 1660 allows New Hampshire municipalities to use project-based credit enhancement agreements (CEAs) to incentivize specific housing developments without requiring a full tax increment financing (TIF) district. It directly affects municipalities and developers building qualifying housing projects, such as senior housing, skilled care facilities, workforce housing, or other community-identified housing needs. The bill clarifies that housing-related captured tax revenue will be excluded from equalized property valuation calculations, preventing towns from facing artificially inflated state tax bases. This change streamlines support for housing projects while excluding conversions of existing homes, luxury developments, or individually owned units like single-family homes. The law aims to address housing shortages by making municipal financial tools more accessible for housing-focused initiatives.

HB 1588 establishes a process for cities and towns to create special assessment districts to fund infrastructure improvements (like roads, water, and sewer systems) directly tied to new housing developments. Municipalities can finance these projects through property assessments on benefiting parcels - collected over up to 20 years - without using general tax revenue. The bill also expands an existing state grant program to fund municipal infrastructure upgrades for new housing, with a $1 appropriation for fiscal year 2027. This directly affects municipalities planning new housing projects and property owners within designated districts who may face assessments based on their specific benefit from improvements.

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 1495 allows New Hampshire school districts to borrow against expected state reimbursements (like education funds) and count those borrowed funds as revenue when setting property tax rates. The bill requires that borrowed funds be used only for the same purpose as the anticipated reimbursement. School districts must notify the state revenue department in writing about the amount to be counted as revenue, and this borrowing is exempt from standard debt limit restrictions under RSA 33. The bill directly affects school districts receiving state education reimbursements by changing how they can manage and report anticipated funds.

This bill eliminates existing premiums for New Hampshire's Medicaid programs (Granite Advantage for adults and CHIP for children) and limits any cost-sharing fees under expanded Medicaid to $5 per service. It repeals current premium requirements that generated approximately $16 million annually in state revenue, requiring a $16 million appropriation in FY2027 to offset this loss. The changes take effect July 1, 2026, with the $5 cost-sharing cap applying starting October 1, 2028. The bill directly affects current Medicaid recipients by removing premium payments and modifies state budgeting for the Medicaid program.