During the 2007 session, the New Hampshire Legislature enacted a research and development credit against business taxes paid to the State of New Hampshire, see TIR 2007-007 . Under the 2007 Laws of New Hampshire, Chapter 271, the Legislature had designated $1,000,000 for each of the next five fiscal years to be available to fund the credit. During the 2013 session, Senate Bill 1 (Chapter 5, Laws of 2013) was passed increasing the award to $2,000,000, effective May 20, 2013, see TIR 2013-001 . Senate Bill 1 also repealed the prospective repeal date of the credit. During the 2015 session, House Bill 2 (Chapter 276, Section 241, Laws of 2015) was passed increasing the award to $7,000,000, effective July 1, 2017, see TIR 2015-005 .
Business organizations that have expenditures made during the fiscal year for qualified manufacturing research and development. "Qualified manufacturing research and development" expenditures are wages paid to employees of the business organization for services rendered in New Hampshire which qualify and are reported as a credit by the business organization under section 41 of the Internal Revenue Code. More specifically, "qualified manufacturing research and development" expenditures are the wage amounts attributable to New Hampshire that make up lines 5 or 24, of the business organization's Federal Form 6765.
The credit may be taken against taxes due on account of taxable periods ending on and after September 7, 2007. The credit is first applied against the Business Profits Tax. Any remainder may be applied against the Business Enterprise Tax. Unused portions of the credit may be carried forward for up to five years.
Applications shall be postmarked no later than June 30 following the taxable period during which the research and development expenditure was made or incurred. The Department will send acknowledgment letters to all applicants by July 31. Applicants will be notified, by mail, of award amounts granted to them by September 30.
The amount of the credit shall be the lesser of 10% of the business organization's qualified manufacturing research and development expenditures or $50,000. In the event that the aggregate amount of credit applied for, in any given fiscal year, exceeds $2,000,000, all credits for that year shall be reduced proportionately.
Unitary businesses and enterprises consisting of more than one taxpayer shall be considered a single taxpayer for purposes of claiming the credit.
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New Hampshire Department of Revenue Administration
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