New Hampshire 2025 Regular Session

New Hampshire Senate Bill SB276 Compare Versions

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Old	New	Differences
1	1	SB 276-FN - AS AMENDED BY THE SENATE
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5	5	03/06/2025 0399s
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7	7	2025 SESSION
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9	9	25-1027
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11	11	07/05
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15	15	SENATE BILL276-FN
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19	19	AN ACTrelative to raising the research and development tax credit.
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23	23	SPONSORS:Sen. Ward, Dist 8; Sen. Innis, Dist 7; Sen. McGough, Dist 11; Sen. Perkins Kwoka, Dist 21; Sen. Watters, Dist 4
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27	27	COMMITTEE:Ways and Means
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35	35	ANALYSIS
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39	39	This bill:
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43	43	I. Raises the aggregate value of all research and development tax credits that can be claimed.
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47	47	II. Raises the hard cap on the research and development tax credit an entity can claim.
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55	55	Explanation:Matter added to current law appears in bold italics.
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57	57	Matter removed from current law appears [in brackets and struckthrough.]
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59	59	Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
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61	61	03/06/2025 0399s25-1027
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63	63	07/05
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67	67	STATE OF NEW HAMPSHIRE
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71	71	In the Year of Our Lord Two Thousand Twenty Five
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75	75	AN ACTrelative to raising the research and development tax credit.
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79	79	Be it Enacted by the Senate and House of Representatives in General Court convened:
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83	83	1 Taxation; Business Profits Tax; Credits. Amend RSA 77-A:5, XIII (a) to read as follows:
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85	85	XIII.(a) There shall be allowed a research and development tax credit for qualified manufacturing research and development expenditures made or incurred during the fiscal year, as follows:
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87	87	(1) The aggregate of tax credits issued by the commissioner to all taxpayers claiming the credit shall not exceed [$7,000,000] $10,000,000 for any fiscal year.
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89	89	(2) Each credit shall be used to offset the taxpayer's tax liability within the subsequent 5 tax years. The amount of the credit shall be the lesser of:
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91	91	(A) Ten percent of the excess of the qualified manufacturing research and development expenses for the taxable year over the base amount;
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93	93	(B) The proportional share of the maximum aggregate credit amount allowed in subparagraph (1);
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95	95	(C) [$50,000] $100,000.
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97	97	(3) Taxpayers shall apply for the tax credit on forms provided by the commissioner and shall be accompanied by information or records required by the commissioner. Such application shall be filed no later than June 30 following the tax year during which research and development occurred.
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99	99	(4) A determination on the final amount of the credit awarded by the commissioner to each taxpayer claiming the credit shall be made no later than September 30 of each year.
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101	101	(5) Wages for which a credit is taken under this paragraph shall not also be eligible for a credit under RSA 162-N.
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103	103	2 Effective Date. This act shall take effect July 1, 2026.
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107	107	LBA
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109	109	25-1027
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111	111	1/3/25
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115	115	SB 276-FN- FISCAL NOTE
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117	117	AS INTRODUCED
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121	121	AN ACTrelative to increasing the research and development tax credit.
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125	125	FISCAL IMPACT:
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128	128	Estimated State Impact
129	129	FY 2025 FY 2026 FY 2027 FY 2028
130	130	Revenue $0 $0 Maximum Decrease of $3,000,000 Indeterminable Decrease
131	131	Revenue Fund(s) General Fund and Education Trust Fund
132	132	Expenditures* $0 $0 $0 $0
133	133	Funding Source(s) None
134	134	Appropriations* $0 $0 $0 $0
135	135	Funding Source(s) None
136	136	Expenditure = Cost of bill Appropriation = Authorized funding to cover cost of bill
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142	142	Estimated State Impact
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146	146	FY 2025
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148	148	FY 2026
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150	150	FY 2027
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154	154	Revenue
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156	156	$0
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158	158	$0
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160	160	Maximum Decrease of $3,000,000
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162	162	Indeterminable Decrease
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164	164	Revenue Fund(s)
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166	166	General Fund and Education Trust Fund
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168	168	Expenditures*
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170	170	$0
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172	172	$0
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174	174	$0
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178	178	Funding Source(s)
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180	180	None
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182	182	Appropriations*
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184	184	$0
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186	186	$0
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188	188	$0
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190	190	$0
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192	192	Funding Source(s)
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194	194	None
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196	196	Expenditure = Cost of bill Appropriation = Authorized funding to cover cost of bill
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200	200	METHODOLOGY:
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202	202	This bill increases the aggregate of Research and Development tax credits (R&D) to be claimed in any fiscal year from $7,000,000 to $10,000,000. The proposed legislation would also increase the maximum credit amount allowed per entity from $50,000 to $100,000. effective January 1, 2026. R&D tax credit applications must be received by June 30 following the tax year during which the research and development occurred. The Department assumes the proposed legislation is applicable to applications received by June 30, 2026 and suggests an effective date of July 1 to better align with the application period.
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206	206	The increase in the R&D tax credit will decrease Business Enterprise Tax (BET) and Business Profits Tax (BPT) revenue by an indeterminable amount. This credit is first applied to the BPT and any unused portion of the credit is then applied to the BET. Additionally, the taxpayer is able to carry forward the R&D tax credit for up to 5 years. The Department is not able to determine when a credit would be claimed to predict the fiscal impact of this bill. The maximum impact in the first year is $3,000,000 if the full amount of the tax credit increase is claimed, however any subsequent years are indeterminable as it is not known when carry forward credits would be used.
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210	210	The Department would need to update all necessary tax return forms and electronic management systems related to this bill, however the Department does not anticipate this bill will result in any additional costs that could not be absorbed in its operating budget.
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214	214	AGENCIES CONTACTED:
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216	216	Department of Revenue Administration