Bill > HB483

This bill modifies the definition of a "scholarship organization" for the purpose of the education tax credit in New Hampshire, specifically requiring that such organizations must be incorporated within the state. The bill removes the previous language allowing organizations "qualified to do business" in the state and now mandates that scholarship organizations must be: 1) exempt from federal income taxation under section 501(c)(3) of the Internal Revenue Code, 2) compliant with state and federal antidiscrimination and privacy laws, 3) registered with the director of charitable trusts, and 4) approved by the department of revenue administration for issuing scholarships. This change could potentially disqualify the current scholarship organization, which is incorporated outside of New Hampshire, from participating in the Education Tax Credit program starting in the 2025-2026 program year. The Education Tax Credit allows businesses and individuals to contribute up to $600,000 to approved scholarship organizations and receive a tax credit equal to 85% of their contribution, with an annual aggregate tax credit limit of $5.1 million. The bill is set to take effect on July 1, 2025, and its fiscal impact is considered indeterminable, as potential revenue gains from disqualifying current organizations could be offset by existing tax credit carryforwards.

Budget and Finance

https://gc.nh.gov/bill_status/legacy/bs2016/bill_status.aspx?lsr=775&sy=2025&sortoption=&txtsessionyear=2025&txtbillnumber=HB483