Bill > HB1102

This bill increases the research and development (R&D) tax credit cap for businesses in the state, specifically raising the aggregate value of tax credits from $7,000,000 to $10,000,000 for any fiscal year. The legislation also increases the maximum credit an individual entity can claim from $50,000 to $100,000. The R&D tax credit allows businesses to offset their tax liability for qualifying manufacturing research and development expenses, with credits that can be used within the subsequent 5 tax years. The credit is calculated as ten percent of the excess of qualified R&D expenses over a base amount, subject to the new aggregate and individual caps. The bill will take effect on July 1, 2026, and is expected to potentially decrease state revenue by up to $3,000,000 in the first year of implementation, with subsequent years' fiscal impact being indeterminable. The Department of Revenue Administration will need to update tax return forms and electronic systems to accommodate these changes, though they do not anticipate additional operational costs beyond their existing budget.

Budget and Finance

https://gc.nh.gov/bill_Status/billinfo.aspx?id=1695&inflect=2