§ 77-A:5 — Credits

New Hampshire § 77-A:5

• Jurisdiction: New Hampshire
• Title V: TAXATION
• Ch. 77-A: BUSINESS PROFITS TAX

Text

The following credits are allowed against the tax due under this chapter:
I. Taxes paid pursuant to RSA 83-C, covering the period from July 1, 1983 through December 31, 1997, and taxes paid pursuant to RSA 83-B covering the period from January 1, 1983, through June 30, 1983;
II. [Repealed.]
III. Taxes paid pursuant to sections of RSA 400-A relating to taxation of insurance companies;
IV. [Repealed.]
V, VI. [Repealed.]
VII. There shall be allowed a job creation tax credit equal to 15 percent of the compensation, as defined in RSA 77-A:1, XXII, paid during the taxable period to eligible employees, as defined in RSA 77-A:1, XXIII, provided, however, that in no event shall the total number of eligible employees for which the tax credit is taken exceed the increase in the total number of employees from the previous tax period to the current tax period. In the event that the excess of (a) the total number of employees in New Hampshire on the last day of the current taxable period over (b) the total number of employees in New Hampshire on the last day of the previous tax period is less than the total number of eligible employees for the current taxable period, then the total amount of compensation for which a credit may be taken shall equal such excess multiplied by the average compensation of such eligible employees. Furthermore, the total credit allowed under this paragraph shall not exceed 5 percent of the tax due under this chapter before any credits under RSA 77-A:5 are taken into account. The job creation tax credit allowed under this paragraph shall take effect July 1, 1992, and shall apply to returns and taxes due on account of taxable periods ending on or after July 1, 1992, for a period of 5 years only. The job creation tax credit allowed under this paragraph shall not be allowed for taxable periods ending on or after July 1, 1997.
VIII, IX. [Repealed.]
X. Taxes paid pursuant to RSA 77-E. Such credit shall be applied in accordance with RSA 77-E:13. No amount of tax paid pursuant to RSA 77-E and used as a credit against the taxes due under RSA 400-A shall be allowed as a credit under this paragraph except as provided in RSA 400-A:34-a. Any unused portion of the credit allowed under this paragraph from taxable periods ending on or after December 31, 2014 may be carried forward and allowed against the tax due under this chapter for 10 taxable periods from the taxable period in which the tax was paid.
XI. The investment tax credit as computed in RSA 162-L:10.
XII. [Repealed.]
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:
(1) The aggregate of tax credits issued by the commissioner to all taxpayers claiming the credit shall not exceed $7,000,000 for any fiscal year.
(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:
(A) Ten percent of the excess of the qualified manufacturing research and development expenses for the taxable year over the base amount;
(B) The proportional share of the maximum aggregate credit amount allowed in subparagraph (1);
(C) $50,000.
(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.
(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.
(5) Wages for which a credit is taken under this paragraph shall not also be eligible for a credit under RSA 162-N.
(b) For purposes of this paragraph:
(1) The term "qualified manufacturing research and development expenditures" shall mean solely any wages paid or incurred to an employee of the business organization for services rendered by such employee within this state within the meaning of RSA 77-A:3, I(a)(1)(B), provided that:
(A) Such wages shall be treated as wages for qualified research expenses under section 41(b) of the United States Internal Revenue Code.
(B) Such services are undertaken for the purpose of discovering information which constitutes qualified research and development of a new or improved manufacturing process or business component of the business organization.
(C) The wages qualify and are reported as a credit by the business organization under section 41 of the United States Internal Revenue Code as defined in RSA 77-A:1, XX.
(D) The wages are reported by the business organization in the enterprise value tax base under RSA 77-E.
(2) "Base amount" shall mean the base amount of expenditure as defined under section 41 of the United States Internal Revenue Code as defined by RSA 77-A:1, XX, except that the minimum base amount may be 0.
(c) A unitary business or an enterprise consisting of one or more taxpayers under this chapter shall be considered a single taxpayer for purposes of claiming the credit under this paragraph.
XIV. The unused portion of any Coos county job creation tax credit awarded by the commissioner under RSA 77-E:3-c shall be available to apply to the business profits tax.
XV. The education tax credit as computed in RSA 77-G:4.
XVI. The tax credit computed under RSA 188-E:9-a for donations to regional career and technical education center programs, provided that the credit allowed for a taxpayer under this paragraph shall not exceed 25 percent of the tax due under this chapter for such taxpayer before any credits under RSA 77-A:5 are taken into account.
XVII. There shall be allowed a granite patron of the arts tax credit, according to the following:
(a) The credit shall be the lesser of 50 percent of donations made to the granite patron of the arts fund or the proportional share of the maximum aggregate credit amount allowed. The department of revenue administration shall oversee and administer the granite patron of the arts tax credit, and may make additional rules, pursuant to RSA 541-A, concerning the credit under this paragraph. No carry forward of this credit shall be allowed. The maximum credit allowed for all taxpayers shall be $350,000 per fiscal year.
(b) 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 the donations occurred.
(c) A determination of 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.

Legislative History

1970, 5:1. 1971, 515:16. 1975, 439:35. 1983, 326:4; 469:99. 1991, 334:4; 354:2, 9, 10. 1993, 49:13, I; 350:15, 16, 41, I-III. 1995, 188:5, II; 308:93, II. 1997, 347:3. 1998, 338:1. 2003, 301:3. 2007, 263:121, 123, II; 271:1, 6, I, eff. July 1, 2015. 2008, 172:2. 2011, 225:1, eff. July 1, 2014. 2012, 287:2, eff. June 27, 2012. 2013, 5:1, eff. May 20, 2013. 2014, 192:1, eff. July 1, 2014 at 12:01 a.m. 2015, 276:241, eff. July 1, 2017. 2019, 247:2, eff. July 1, 2019; 2019, 346:427, eff. Jan. 1, 2022. 2022, 16:1, eff. Apr. 11, 2022. 2025, 141:187, eff. July 1, 2025.