NH gives out more Research and Development tax credits

This month for the first time New Hampshire gave out $7 million in Research and Development tax credits.  Prior to July the state was only authorized to give out $2 million in credits each year.

The Research and Development tax credit is available for wages paid to employees for manufacturing research and development, up to $50,000.  The credit is applied to the Business Profits Tax.

Visit our issue page to learn more about Business Taxes. 

Supporters praise the credit for business growth

Lawmakers approved the expanded tax credit two years ago.  Supporters said it would boost economic activity and ease New Hampshire’s relatively high business taxes.

“When combined with reductions in business taxes and removing overly burdensome regulations on small businesses, programs like the R&D Tax Credit serve to promote the business-friendly environment that encourages business growth and job creation, sending a message to out-of-state companies that New Hampshire is open for business.”

- Gov. Chris Sununu 

Opponents believe business tax cuts have gone far enough

When debating the tax credit two years ago, some lawmakers expressed concern that New Hampshire should not raise the credit while simultaneously cutting business tax rates.  Business taxes provide roughly one-quarter of the government’s unrestricted revenue.

Legislators voted to cut business taxes again in this year’s budget.

“In good conscience and good faith, Democrats are not able to sign off on a budget that diverts funds away from our state’s critical substance misuse and mental health crises for the sake of more reckless business tax cuts. This budget continues a troubling pattern of forcing the working people in our state to pick up the bill.”

- Sen. Jeff Woodburn 

Do you have an opinion on New Hampshire business tax rates and credits?  Share your thoughts in the comments below.