The New Hampshire Education Tax Credit Program was established in 2012 by Senate Bill 372 (Chapter 287, Laws of 2012) The Education Tax Credit (ETC) allows a business organization or business enterprise to make a money donation (up to $600,000) to an approved scholarship organization(s) for which the business organization or business enterprise will receive a tax credit against the Business Profits Tax (BPT) and/or Business Enterprise Tax (BET) or Interest and Dividends Tax (I&D) equal to 85% of their donation.
HB 1686 (Chapter 341) allows individuals (including “any entity having taxable interest and dividend income as described in RSA 77:3”) to apply for and, if granted by the DRA, use an education tax credit against the Interest and Dividends Tax.
The donations are used by an approved scholarship organization(s) to grant scholarships for children to attend private schools. The Education Tax Credit Program began January 1, 2013. This tax credit is not a “cascading” credit. The ETC has a 5 Year carryforward provision as it applies to the BPT and/or BET. However, there is no carryforward provision when it is applied to I&D. The tax credit may only be used to offset I&D tax liabilities incurred in the tax year in which the donation was made.
HB 1819 (Chapter 357) makes various changes to the administration of the education tax credit program, including the definition of “program year” from a calendar year to one beginning July 1 and ending June 30,
and its application procedures. It also allows a business organization or business enterprise to carry forward any unused portion of the education tax credit amount granted by the DRA for 5 succeeding years, but not more than $1,000,000 in any given tax year.
Technical Information Release
2022: Allowable Average Value of Scholarships for the 2022-2023 Education Tax Credit Program Year
2021: Allowable Average Value of Scholarships for the 2021-2022 Education Tax Credit Program Year
Education Tax Credit Court Decision
Statute
Rules
Forms
Applying for the Education Tax Credit Program? The NH DRA Taxpayer Portal,Granite Tax Connect (GTC), is now live. Complete and submit your Education Tax Credit application, ED-02, online at https://gtc.revenue.nh.gov
Education Tax Credit Reporting
2020-2021 Scholarship Organization Education Report filed by Children’s Scholarship Fund
2020-2021 Scholarship Organization Education Report filed by Giving and Going Alliance
Portable Document Format (.pdf). Visit nh.gov for a list of free .pdf readers for a variety of operating systems.
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