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The NH Education Tax Credit Program

The New Hampshire Education Tax Credit Program was established in 2012 by Senate Bill 372 pdf file (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.

HB1686 (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.

HB1819 (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

Education Tax Credit Court Decision

Statute

Rules

Forms

Education Tax Credit Reporting

Adobe Acrobat Reader Symbol Portable Document Format (.pdf). Visit nh.gov for a list of free .pdf readers for a variety of operating systems.


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