I. A town or city may adopt or rescind an optional tax credit for combat service pursuant to the procedure provided in N.H. Rev. Stat. § 72:27-a.
II. The optional tax credit for combat service, upon adoption by a city or town pursuant to N.H. Rev. Stat. § 72:27-a, shall be an amount from $50 up to $500. The tax credit for combat service shall be subtracted each year from the property tax on the qualifying service member’s residential real estate, as defined in N.H. Rev. Stat. § 72:29, II.

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Terms Used In New Hampshire Revised Statutes 72:28-c

  • Active duty: means full-time duty as an enlisted member, or as a commissioned or warrant officer, in any branch of the armed forces. See New Hampshire Revised Statutes 21:50
  • Armed forces: means the United States Army, Army Reserve, Navy, Naval Reserve, Marine Corps, Marine Corps Reserve, Air Force, Air Force Reserve, Space Force, Coast Guard, Coast Guard Reserve, Army National Guard, and the Air National Guard. See New Hampshire Revised Statutes 21:50
  • following: when used by way of reference to any section of these laws, shall mean the section next preceding or following that in which such reference is made, unless some other is expressly designated. See New Hampshire Revised Statutes 21:13
  • person: may extend and be applied to bodies corporate and politic as well as to individuals. See New Hampshire Revised Statutes 21:9
  • real estate: shall include lands, tenements, and hereditaments, and all rights thereto and interests therein. See New Hampshire Revised Statutes 21:21
  • state: when applied to different parts of the United States, may extend to and include the District of Columbia and the several territories, so called; and the words "United States" shall include said district and territories. See New Hampshire Revised Statutes 21:4
  • Veteran: means any person who:
    (1) Served in the United States armed forces for more than 4 years and continues to serve; or
    (2) Has been discharged or released from duty in the United States armed forces with:
    (A) An honorable discharge; or
    (B) An uncharacterized discharge based on a service-connected injury, illness, or disability. See New Hampshire Revised Statutes 21:50

III. To qualify for the tax credit for combat service, a person shall be a resident of this state engaged at any point during the taxable period in combat service as a member of the New Hampshire national guard or a reserve component of the Unites States armed forces, called to active duty. For purposes of this section, and in accordance with Internal Revenue Service Publication 3, Armed Forces Tax Guide, “combat service” shall mean military service in one of the following areas:
(a) An active combat area as designated by the President in an Executive Order, for which the service member receives special pay for duty subject to hostile fire or imminent danger as certified by the Department of Defense.
(b) A support area as designated by the Department of Defense in direct sustainment of military operations in the combat zone, for which the service member receives special pay for duty subject to hostile fire or imminent danger as certified by the Department of Defense.
(c) Service in a contingency operation as designated by the Department of Defense, for which the service member receives special pay for duty subject to hostile fire or imminent danger as certified by the Department of Defense.
IV. The application for the tax credit under this section shall be accompanied by the service member’s military orders, and shall include such information as may be required for the assessor’s office to verify the dates of combat service.
V. A tax credit for combat service shall be in lieu of, and not in addition to, the optional veteran‘s tax credit under N.H. Rev. Stat. § 72:28 or the all veterans’ tax credit under N.H. Rev. Stat. § 72:28-b. The service member shall be eligible for the credit in each tax year in which the combat service occurs, but the credit may be prorated in the second tax year based on the duration of combat service.