New Hampshire SB 652: changing the maximum award of tax credits for overpayment of due taxes.

Bill Text

SB 652-FN - VERSION ADOPTED BY BOTH BODIES

2026 SESSION

 26-3254

 07/09

SENATE BILL 652-FN

AN ACT changing the maximum award of tax credits for overpayment of due taxes.

SPONSORS: Sen. Lang, Dist 2

COMMITTEE: Ways and Means

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ANALYSIS

 This bill changes the maximum award of tax credits for overpayment of due taxes.

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 Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

 26-3254

 07/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twenty-Six

AN ACT changing the maximum award of tax credits for overpayment of due taxes.

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

 1 Business Profits Tax; Payments Due With Returns and With Estimates. Amend RSA 77-A:7, I(b) to read as follows: 

 (b) If the return required by RSA 77-A:6, I shows an additional amount to be due, such additional amount is due and payable on the prescribed payment date. If such return shows an overpayment of the tax due, the commissioner shall refund or credit the overpayment to the taxpayer in accordance with RSA 21-J:28-a, except that: 

 (1) For taxable periods ending on or after December 31, 2022 a credit shall only be allowed in an amount up to 500 percent of the total tax liability for the taxable period and the remainder of the overpayment shall be refunded;

 (2) For taxable periods ending on or after December 31, 2029 a credit shall only be allowed in an amount up to [250] 450 percent of the total tax liability for the taxable period and the remainder of the overpayment shall be refunded; [and]

 (3) For taxable periods ending on or after December 31, 2031 a credit shall only be allowed in an amount up to [100] 400 percent of the total tax liability for the taxable period and the remainder of the overpayment shall be refunded;

 (4) For taxable periods ending on or after December 31, 2033 a credit shall only be allowed in an amount up to 350 percent of the total tax liability for the taxable period and the remainder of the overpayment shall be refunded;

 (5) For taxable periods ending on or after December 31, 2035 a credit shall only be allowed in an amount up to 300 percent of the total tax liability for the taxable period and the remainder of the overpayment shall be refunded;

 (6) For taxable periods ending on or after December 31, 2037 a credit shall only be allowed in an amount up to 250 percent of the total tax liability for the taxable period and the remainder of the overpayment shall be refunded;

 (7) For taxable periods ending on or after December 31, 2039 a credit shall only be allowed in an amount up to 200 percent of the total tax liability for the taxable period and the remainder of the overpayment shall be refunded; and

 (8) For taxable periods ending on or after December 31, 2041 a credit shall only be allowed in an amount up to 150 percent of the total tax liability for the taxable period and the remainder of the overpayment shall be refunded. 

 2 Effective Date. This act shall take effect 60 days after its passage. 

 LBA

 26-3254

 Revised 3/4/26

SB 652-FN- FISCAL NOTE

AS INTRODUCED

AN ACT changing the maximum award of tax credits for overpayment of due taxes.

FISCAL IMPACT: 

 Estimated State Impact

FY 2026

FY 2027

FY 2028

FY 2029

 Revenue

$0

$0

$0

Indeterminable Increase

 Revenue Fund(s)

General Fund and Education Trust Fund

 Expenditures*

$0

$0

$0

$0

 Funding Source(s)

None

 Appropriations*

$0

$0

$0

$0

 Funding Source(s)

None

 *Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill

METHODOLOGY:

This bill amends the credit carryforward limits for the Business Profits Tax and Business Enterprise Tax. Currently the credit carry forward limit is 500% with further decreases scheduled to a 250% limit for taxable periods ending on or after December 31, 2029 and to a 100% limit for taxable periods ending on or after December 31, 2031. This bill will change the credit carryforward limits to be the following: 

 Taxable Period Ending

Credit Carryforward Limit

 December 31, 2029

450%

 December 31, 2031

400%

 December 31, 2033

350%

 December 31, 2035

300%

 December 31, 2037

250%

 December 31, 2039

200%

 December 31, 2041

150%

The Department of Revenue Administration states that it is unable to predict the exact future impact of this change. Using Tax Year (TY) 2023 data, the Department is able to provide an estimated impact assuming that tax year liability will remain static and that taxpayer behavior will not change in response to the current or proposed law phase-ins. The Department notes