New Hampshire SB 635: establishing a health reimbursement arrangement tax credit program and making an appropriation for improvements in the department of revenue administration's information management system.

Bill Text

SB 635-FN - AS AMENDED BY THE SENATE

03/05/2026 0832s

2026 SESSION

 26-2214

 07/06

SENATE BILL 635-FN

AN ACT establishing a health reimbursement arrangement tax credit program and making an appropriation for improvements in the department of revenue administration's information management system.

SPONSORS: Sen. Ricciardi, Dist 9; Sen. Avard, Dist 12; Sen. McGough, Dist 11; Sen. Watters, Dist 4; Sen. Abbas, Dist 22; Sen. Perkins Kwoka, Dist 21; Rep. Kuttab, Rock. 17; Rep. Mary Murphy, Hills. 27; Rep. Ohm, Hills. 10; Rep. Miles, Hills. 12; Rep. Labrie, Hills. 2

COMMITTEE: Ways and Means

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AMENDED ANALYSIS

 This bill establishes a health reimbursement arrangement tax credit program and makes an appropriation for improvements in the department of revenue administration's information management system.

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 Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03/05/2026 0832s 26-2214

 07/08

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twenty-Six

AN ACT establishing a health reimbursement arrangement tax credit program and making an appropriation for improvements in the department of revenue administration's information management system.

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

 1 Short Title. This act may be known and cited to as "The Health Reimbursement Tax Credit Program Act." 

 2 New Chapter; Health Reimbursement Arrangement Tax Credit. Amend RSA by inserting after chapter 77-G the following new chapter: 

CHAPTER 77-H 

HEALTH REIMBURSEMENT ARRANGEMENT TAX CREDIT 

 77-H:1 Definitions. As used in this chapter: 

 I. “Covered employee” means an employee for whom a qualified taxpayer makes a qualified contribution. 

 II. “Department” means the department of revenue of administration. 

 III. “Qualified account” means an individual coverage health reimbursement arrangement established pursuant to 45 C.F.R. 146.123 or a qualified small employer health reimbursement arrangement described in Section 9831(d) of the Internal Revenue Code. 

 IV. "Qualified contribution” means a reimbursement by a qualified taxpayer to a qualified account for use in accordance with applicable federal laws and regulations. 

 V. “Qualified taxpayer” means an employer with fewer than 50 employees that is a corporation, a limited liability company, a partnership, or another entity that has any state tax liability under RSA 77-A or RSA 77-E. 

 77-H:2 Eligibility Criteria. 

 A qualified taxpayer may claim a credit against their tax due under RSA 77-A and RSA 77-E, in the manner described in RSA 77-H:3, for qualified contributions of $300 per covered employee per year for no more than 2 years, which shall be consecutive, if: 

 (a) The qualified taxpayer did not contribute to an employer sponsored group health insurance plan for the covered employee in any of the previous 3 years; and 

 (b) The contribution to a qualified account in the benefit year for which the credit is claimed is not less than $300 more than the amount provided in the last benefit year of an employer sponsored group health insurance program or qualified account for the covered employee prior to the first year in which the credit was claimed. 

 77-H:3 Health Reimbursement Arrangement Tax Credit. 

 I. There shall be allowed a health reimbursement arrangement tax credit applied to a qualified taxpayer, as set forth in RSA 77-H:2, for qualified contributions made during the taxable year, as follows: 

 (a) To receive the credit provided under this chapter, a qualified taxpayer shall submit an application on a form to be prescribed by the commissioner and shall be accompanied by information or records required by the commissioner. 

 (b) Applications shall be processed on a first come, first served basis, up to the aggregate tax credit amount allowed under this section. If multiple applications are received on the same day, they shall be processed at random. 

 (c) Once awarded, the credit may be claimed by the qualified taxpayer against tax due under RSA 77-E at any time in the manner prescribed by the department. Any unused credit may be applied against RSA 77-A. For the purposes of the credit allowed under 77-A:5, X, the credit under this section shall be considered taxes paid. 

 (d) The aggregate amount of tax credits awarded under this chapter may not exceed $2,500,000 in any state fiscal year. 

 (e) The department may not award a tax credit after the total credits awarded under this section equals the maximum amount allowable in a particular sta