New Hampshire SB 404: relative to economic revitalization zone tax credits.

Bill Text

SB 404-FN - AS INTRODUCED

2026 SESSION

 26-2209

 07/06

SENATE BILL 404-FN

AN ACT relative to economic revitalization zone tax credits.

SPONSORS: Sen. Gray, Dist 6

COMMITTEE: Ways and Means

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ANALYSIS

 This bill makes changes to the eligibility and award of economic revitalization tax zone credits.

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Explanation: Matter added to current law appears in bold italics.

 Matter removed from current law appears [in brackets and struckthrough.]

 Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

 26-2209

 07/06

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twenty-Six

AN ACT relative to economic revitalization zone tax credits.

Be it Enacted by the Senate and House of Representatives in General Court convened:

 1 Public Safety and Welfare; Economic Revitalization Zone Tax Credits; Reevaluation of Economic Revitalization Zone. Amend RSA 162-N:2-a to read as follows: 

 162-N:2-a Reevaluation of Economic Revitalization Zone. Each economic revitalization zone shall be evaluated every [5] 8 years to determine if it meets the criteria required in RSA 162-N:2. If an economic revitalization zone fails to meet the criteria in RSA 162-N:2, its designation as an economic revitalization zone shall be removed. 

 2 Public Safety and Welfare; Economic Revitalization Zone Tax Credits. Amend RSA 162-N:5 through 8 to read as follows: 

 162-N:5 Limit on Total Economic Revitalization Zone Credits. The aggregate of tax credits issued by the commissioner of [economic and business affairs] business and economic affairs to all taxpayers claiming the credit shall not exceed [$825,000] $1,000,000 for any [calendar] fiscal year, except that any amount of the credit less than [$825,000] $1,000,000 that is not claimed in the [calendar] fiscal year may be issued in the next [calendar year] 2 fiscal years [and in following years]. Amounts carried forward pursuant to RSA 162-N:7 shall not be counted against this limit in any year in which they are applied. Notwithstanding RSA 162-N:6, the maximum credit which may be utilized by a taxpayer in [any calendar] any fiscal year shall not exceed [$40,000] $50,000. In the case in which the aggregate credits requested during the calendar year exceed the amount available, each taxpayer shall receive a credit for the proportional share of the maximum aggregate credit amount. 

 162-N:6 Determination of Economic Revitalization Zone Tax Credits Eligible Amount. For the purpose of determining the economic revitalization zone tax credit that the taxpayer is eligible to receive, the amount of the credit to be taken shall be the sum of the following: 

 I. 4 percent of the salary or wage for each new full-time job created in the [calendar] state fiscal year with a wage less than or equal to [1.75] 2.5 times the then current state minimum wage. 

 II. [5] 6 percent of the salary or wage for each new full-time job created in the [calendar] state fiscal year with a wage greater than [1.75] 2.5 times the then current state minimum wage [and less than or equal to 2.5 times the then current state minimum wage]. 

 III. [6 percent of the salary for each new full-time job created in the calendar year with a wage greater than 2.5 times the then current state minimum wage.

 IV. 4] 5 percent of the [lesser of the following:

 (a) The] actual cost incurred in the [calendar] state fiscal year of creating a new facility or renovating an existing facility, and expenditures for machinery, equipment, or other materials, except inventory.

 [(b) $20,000 for each new full-time job created in the calendar year.]

 162-N:7 Application of Economic Revitalization Zone Tax Credit. 

 I. The economic revitalization zone tax credit shall be applied against the business profits tax under RSA 77-A, and any unused portion thereof may be applied against the business enterprise tax under RSA 77-E. Any unused portion of the credit allowed under this chapter or any eligible credit in excess of [$40,000] $50,000 allowed under this chapter, may be carried forward and allowed against taxes due under RSA 77-A or RSA 77-E for [5] an additional 4 taxable periods from the taxable period in which the tax was first paid and the credit was initially granted. 

 II. Unless otherwise specified herein, an awarded economic revitalization zone tax credit (ERZTC) shall be eligible for use for a total of 5 consecutive taxable periods or years. The initial taxable period or year under the award shall be considered the first year, and then the tax credit shall be eligible for renewal in the next 4 consecutive taxable periods or years, where applicable. A taxpayer may not apply for an additional ERZTC until previously awarded ERZTCs have been exhausted, including any credits that