CONCORD, NH – After an active legislative session highlighted by several bills related to tax law, the New Hampshire Department of Revenue Administration (NHDRA) is issuing a reference guide of relevant tax changes. NHDRA outlines 21 bills in the guide, or Technical Information Release (TIR), including the highly-publicized tax exemption for regenerative manufacturing companies and the use of education tax credits against Interest & Dividends (I&D) Tax for individuals.
“With a variety of changes this year, we proactively developed this tax guide to help businesses and individuals easily navigate the changes made to various taxes we administer,” said NHDRA Commissioner Lindsey Stepp. “Our goal is to keep the public informed on the issues that impact them, and we are making a concerted effort to increase communication between NHDRA and the various groups of taxpayers and professionals we serve.”
Business Tax
Regenerative manufacturing, the creation of new tissue for medical purposes, is an emerging technology that could change the way medicine is practiced. The United States government, along with New Hampshire companies, have already started investing time and resources into the advancement of regenerative manufacturing within the state, making New Hampshire uniquely suited to host the growth of this emerging industry. Senate Bill 564 amends RSA 77-A and RSA 77-E to establish a 10-year, 100-percent exemption from the Business Profits Tax and Business Enterprise Tax for qualified regenerative manufacturing companies. The bill also provides for a regenerative manufacturing workforce development program administered by the business finance authority.
Other changes to the Business Tax include House Bill 1819, which amends RSA 77-G to make changes to the administration of the education tax credit program, including changing the definition of “program year” from a calendar year to July 1-June 30. The bill also makes changes to the application procedure and permits business organizations and enterprises to carry forward unused education tax credits for no more than 5 succeeding years.
I&D Tax
House Bill 1686, relative to the use of education tax credits, amends RSA 77-G to allow individuals to apply for and, if granted, use the education tax credit against the I&D Tax. Previously, only a “business organization” or “business enterprise” could apply an education tax credit against the Business Profits Tax and/or Business Enterprise Tax. Now, “individuals” have been added to the list of groups that can apply for this tax credit, which can now be applied against the tax on I&D. Eligible groups and individuals are able to apply for a credit equal to 85-percent of a contribution made to a scholarship organization.
Real Estate Transfer Tax
At the request of NHDRA, House Bill 1251 amends RSA 78-B to delete the reference to “stamps” as an indication of the Real Estate Transfer Tax payment. This change clarifies acceptable forms of payment evidence. In practice, NHDRA has already been doing this, but the removal of the specific word clarifies any confusion for taxpayers and professionals processing the information.
Administrative
House Bill 1104 amends RSA 541-A to reduce time limits for agency action on applications, petitions, and requests; and provides that failure of an agency to take required action within time limits will be treated as agency approval. The bill also amends RSA 21-J:28-b to prescribe time limits specific to action by NHDRA on appeals for redetermination or reconsideration.
Municipal and Property
The remaining changes outlined in the reference guide/TIR fall under Municipal and Property taxes, and include the creation of a commission to study utility property valuation, clarification of the taxation of property imposed on a recreational vehicle located at a campground, lowering the interest rate charged on late and delinquent property taxes, increasing the maximum property tax credit for service-connected total disability, and increasing the maximum optional veterans’ tax credit.
The TIR produced by NHDRA is for informational purposes only. It is not intended to be relied upon as a full and complete text or as a substitute for the actual state law. NHDRA encourages taxpayers to refer to the applicable statute and rules to determine how this information applies to specific persons or situations.
The report can be viewed at www.revenue.nh.gov/tirs.
About the New Hampshire Department of Revenue Administration
The New Hampshire Department of Revenue Administration (NHDRA) is responsible for fairly and efficiently administering the tax laws of the State of New Hampshire. NHDRA collects approximately 80% of New Hampshire’s general taxes. During Fiscal Year 2017, DRA collected $1.5 billion in revenue for the New Hampshire General Fund and Education Trust Fund. DRA also provides assistance to municipalities in budgeting, finance and real estate appraisal.
NHDRA administers and collects the following taxes at the state level: Business Enterprise Tax, Business Profits Tax, Communications Services Tax, Electricity Consumption Tax, Interest and Dividends Tax, Meals and Rooms Tax, Medicaid Enhancement Tax, Nursing Facility Quality Assessment, Tobacco Tax, Taxation of Railroads, Utility Property Tax, Real Estate Transfer Tax; and the following taxes at the local level: Property Tax, Excavation Tax, Timber Tax. To learn more about NHDRA, please visit www.revenue.nh.gov.
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