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TITLE V

TAXATION
CHAPTER 77-A
BUSINESS PROFITS TAX
Section 77-A:5

77-A:5 Credits. The following credits are allowed against the tax due under this chapter:
I. Taxes paid pursuant to RSA 83-C, covering the period from July 1, 1983 through December 31, 1997, and
taxes paid pursuant to RSA 83B covering the period from January 1, 1983, through June 30, 1983
II. [Repealed.]
III. Taxes paid pursuant to sections of RSA 400-A relating to taxation of insurance companies
IV. . [Repealed.]
V, VI. [Repealed.]
VII. There shall be allowed a job creation tax credit equal to 15 percent of the compensation, as defined in
RSA 77-A:1, XXII, paid during the taxable period to eligible employees, as defined in RSA 77-A:1, XXIII,
provided, however, that in no event shall the total number of eligible employees for which the tax credit is taken
exceed the increase in the total number of employees from the previous tax period to the current tax period. In
the event that the excess of (a) the total number of employees in New Hampshire on the last day of the current
taxable period over (b) the total number of employees in New Hampshire on the last day of the previous tax
period is less than the total number of eligible employees for the current taxable period, then the total amount of
compensation for which a credit may be taken shall equal such excess multiplied by the average compensation
of such eligible employees. Furthermore, the total credit allowed under this paragraph shall not exceed 5 percent
of the tax due under this chapter before any credits under RSA 77-A:5 are taken into account. The job creation
tax credit allowed under this paragraph shall take effect July 1, 1992, and shall apply to returns and taxes due on
account of taxable periods ending on or after July 1, 1992, for a period of 5 years only. The job creation tax
credit allowed under this paragraph shall not be allowed for taxable periods ending on or after July 1, 1997.
VIII, IX. [Repealed.]
X. Taxes paid pursuant to RSA 77-E. Such credit shall be applied in accordance with RSA 77-E:13. No
amount of tax paid pursuant to RSA 77-E and used as a credit against the taxes due under RSA 400-A shall be
allowed as a credit under this paragraph except as provided in RSA 400-A:34-a. Any unused portion of the
credit allowed under this paragraph from taxable periods ending on or after December 31, 2014 may be carried
forward and allowed against the tax due under this chapter for 10 taxable periods from the taxable period in
which the tax was paid.
XI. The investment tax credit as computed in RSA 162-L:10.

[Paragraph XII repealed by 2007, 263:123, II, effective July 1, 2020.]

XII. The economic revitalization zone tax credit, as computed in RSA 162-N:6.
XIII. (a) There shall be allowed a research and development tax credit for qualified manufacturing research
and development expenditures made or incurred during the fiscal year, as follows:

[Paragraph XIII(a)(1) effective until July 1, 2017 see also paragraph XIII(a)(1) set out below.]

(1) The aggregate of tax credits issued by the commissioner to all taxpayers claiming the credit shall not
exceed $2,000,000 for any fiscal year.
[Paragraph XIII(a)(1) effective July 1, 2017 see also paragraph XIII(a)(1) set out above.]

(1) The aggregate of tax credits issued by the commissioner to all taxpayers claiming the credit shall not
exceed $7,000,000 for any fiscal year.
(2) Each credit shall be used to offset the taxpayer's tax liability within the subsequent 5 tax years. The
amount of the credit shall be the lesser of:
(A) Ten percent of the excess of the qualified manufacturing research and development expenses for the
taxable year over the base amount
(B) The proportional share of the maximum aggregate credit amount allowed in subparagraph (1)
(C) $50,000.
(3) Taxpayers shall apply for the tax credit on forms provided by the commissioner and shall be
accompanied by information or records required by the commissioner. Such application shall be postmarked no
later than June 30 following the tax year during which research and development occurred.
(4) A determination on the final amount of the credit awarded by the commissioner to each taxpayer
claiming the credit shall be made no later than September 30 of each year.
(5) Wages for which a credit is taken under this paragraph shall not also be eligible for a credit under RSA
162-N.
(b) For purposes of this paragraph:
(1) The term "qualified manufacturing research and development expenditures'' shall mean solely any
wages paid or incurred to an employee of the business organization for services rendered by such employee
within this state within the meaning of RSA 77A:3 I(b), provided that:
(A) Such wages shall be treated as wages for qualified research expenses under section 41(b) of the
United States Internal Revenue Code.
(B) Such services are undertaken for the purpose of discovering information which constitutes qualified
research and development of a new or improved manufacturing process or business component of the business
organization.
(C) The wages qualify and are reported as a credit by the business organization under section 41 of the
United States Internal Revenue Code as defined in RSA 77-A:1, XX.
(D) The wages are reported by the business organization in the enterprise value tax base under RSA 77-
E.
(2) "Base amount'' shall mean the base amount of expenditure as defined under section 41 of the United
States Internal Revenue Code as defined by RSA 77-A:1, XX, except that the minimum base amount may be 0.
(c) A unitary business or an enterprise consisting of one or more taxpayers under this chapter shall be
considered a single taxpayer for purposes of claiming the credit under this paragraph.
XIV. 77-E:3-c shall be available to apply to the business profits tax.
XV. . The education tax credit as computed in RSA 77-G:4.
XVI. (a) There shall be allowed a customer-generator development tax credit for electrical self-
generation expenditures made or incurred during the fiscal year, as follows:
(2) The aggregate of tax credits issued by the commissioner to all taxpayers claiming the credit
shall not exceed $15,000,000 for any fiscal year.
(3) Each credit shall be used to offset the taxpayer's tax liability within the subsequent 5 tax
years.
(4) Taxpayers shall apply for the tax credit on forms provided by the commissioner and shall be
accompanied by information or records required by the commissioner. Such application shall
be postmarked no later than June 30 following the tax year during which research and
development occurred.
(5) A determination on the final amount of the credit awarded by the commissioner to each
taxpayer claiming the credit shall be made no later than September 30 of each year.
(6) The first year (initial tax year) use of this credit shall automatically expire 7 years from the
date of its passage.
(7) Use of this tax credit is restricted to New Hampshire Industrial rate class electrical customers
or companies whose primary revenues are from manufacturing operations in New
Hampshire.
(b) For purposes of this paragraph:
(1) The term "customer-generator shall mean solely that which is defined in RSA 362-A:1
(2) The total credit allowed (%) for the permitting, design, acquisition and installation of the self-
generation equipment and electrical storage equipment used, shall be based upon the specific
technology allowed under RSA 362-A:1 and its expected life cycle per the following schedule:
TAX CREDIT SCHEDULE
15%- Micro Combined Heating and Power System (CHP) (<50kw)
20%- Small CHP Systems (>50kw but < 500kw)
25%- Large CHP Systems (>500kw but <5000kw)
25%- PV Solar and Wind Systems <5000kw
35%- Small Hydropower Systems (<1000kw)
50%- Hydropower Systems (>1000kw but <5000kw)

XVII.

Source. 1970, 5:1. 1971, 515:16. 1975, 439:35. 1983, 326:4 469:99. 1991, 334:4 354:2, 9, 10. 1993, 49:13, I
350:15, 16, 41, I-III. 1995, 188:5, II 308:93, II. 1997, 347:3. 1998, 338:1. 2003, 301:3. 2007, 263:121, 123, II
271:1, 6, I, eff. July 1, 2015. 2008, 172:2. 2011, 225:1, eff. July 1, 2014. 2012, 287:2, eff. June 27, 2012. 2013,
5:1, eff. May 20, 2013. 2014, 192:1, eff. July 1, 2014 at 12:01 a.m. 2015, 276:241, eff. July 1, 2017.