Budget & Taxes (Small Business)

SB 638 establishes a small business tariff stabilization fund to provide financial assistance to New Hampshire small businesses affected by reduced revenue from tariffs and trade disruptions. The fund, initially funded with $2.5 million from the General Fund, will distribute grants to support businesses facing supply chain issues or increased costs due to tariffs, specifically targeting those committed to avoiding layoffs. It directly benefits small businesses (defined per U.S. Small Business Administration standards) operating primarily in New Hampshire that have experienced revenue declines linked to lower exports to Canada and tourism impacts. The fund is separate from other state funds, non-lapsing, and will be managed by the Department of Business and Economic Affairs starting January 1, 2027.

SB 636 creates tax credits for small businesses facing increased costs due to federal tariffs. Qualifying businesses - manufacturers with fewer than 50 employees or non-manufacturers with average annual revenue under $500,000 - can claim a credit equal to 25% of documented tariff-related costs (e.g., via invoices or supplier certifications), up to $7,500 per business annually. The total state spending on these credits is capped at $8 million per fiscal year, with applications processed in order of receipt and prorated if the cap is exceeded. Unused credits may be carried forward for up to three years, but credits are non-refundable and applied first against business profits tax.