Bill > SB158

This bill raises the funding cap for the New Hampshire Community Development Finance Authority (CDFA) from $5 million to $10 million in annual contributions eligible for tax credits. Specifically, the bill increases the maximum amount of contributions that businesses can make to the CDFA and receive tax credits, which are set at 75 percent of the contribution and can be applied to Business Profits Tax (BPT), Business Enterprise Tax (BET), and Insurance Premium Tax. Any unused credits can be carried forward for up to 5 successive years, with a limit of $1 million in credits per tax year. The CDFA argues that while the increased contribution cap will decrease state tax revenue (potentially up to $3.75 million in fiscal year 2026), it will also leverage additional federal funds, stimulate economic activity, and potentially create new jobs. The bill is set to take effect on July 1, 2025, and aims to provide more financial resources for community development projects in New Hampshire by incentivizing larger private sector contributions to the authority.