New Hampshire Revised Statutes 77-A:5 – Credits
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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 N.H. Rev. Stat. Chapter 83-B covering the period from January 1, 1983, through June 30, 1983;
II. [Repealed.]
III. Taxes paid pursuant to sections of N.H. Rev. Stat. Chapter 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 [Repealed.]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 [Repealed.]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 N.H. Rev. Stat. § 77-A:1, XXII, paid during the taxable period to eligible employees, as defined in N.H. Rev. Stat. § 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 N.H. Rev. Stat. § 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 [Repealed.]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 N.H. Rev. Stat. § 77-E:13. No amount of tax paid pursuant to N.H. Rev. Stat. Chapter 77-E and used as a credit against the taxes due under N.H. Rev. Stat. Chapter 400-A shall be allowed as a credit under this paragraph except as provided in N.H. Rev. Stat. § 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 N.H. Rev. Stat. § 162-L:10.
XII. [Repealed.]
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:
(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 filed 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 N.H. Rev. Stat. § 77-A:3, I(a)(1)(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 N.H. Rev. Stat. § 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 N.H. Rev. Stat. § 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. The unused portion of any Coos county job creation tax credit awarded by the commissioner under N.H. Rev. Stat. § 77-E:3-c shall be available to apply to the business profits tax.
XV. The education tax credit as computed in N.H. Rev. Stat. § 77-G:4.
XVI. The tax credit computed under N.H. Rev. Stat. § 188-E:9-a for donations to regional career and technical education center programs, provided that the credit allowed for a taxpayer under this paragraph shall not exceed 25 percent of the tax due under this chapter for such taxpayer before any credits under N.H. Rev. Stat. § 77-A:5 are taken into account.
I. Taxes paid pursuant to RSA 83-C, covering the period from July 1, 1983 through December 31, 1997, and taxes paid pursuant to N.H. Rev. Stat. Chapter 83-B covering the period from January 1, 1983, through June 30, 1983;
Terms Used In New Hampshire Revised Statutes 77-A:5
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- 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
- 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
- United States: shall include said district and territories. See New Hampshire Revised Statutes 21:4
II. [Repealed.]
III. Taxes paid pursuant to sections of N.H. Rev. Stat. Chapter 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 N.H. Rev. Stat. § 77-A:1, XXII, paid during the taxable period to eligible employees, as defined in N.H. Rev. Stat. § 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 N.H. Rev. Stat. § 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 N.H. Rev. Stat. § 77-E:13. No amount of tax paid pursuant to N.H. Rev. Stat. Chapter 77-E and used as a credit against the taxes due under N.H. Rev. Stat. Chapter 400-A shall be allowed as a credit under this paragraph except as provided in N.H. Rev. Stat. § 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 N.H. Rev. Stat. § 162-L:10.
XII. [Repealed.]
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:
(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 filed 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 N.H. Rev. Stat. § 77-A:3, I(a)(1)(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 N.H. Rev. Stat. § 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 N.H. Rev. Stat. § 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. The unused portion of any Coos county job creation tax credit awarded by the commissioner under N.H. Rev. Stat. § 77-E:3-c shall be available to apply to the business profits tax.
XV. The education tax credit as computed in N.H. Rev. Stat. § 77-G:4.
XVI. The tax credit computed under N.H. Rev. Stat. § 188-E:9-a for donations to regional career and technical education center programs, provided that the credit allowed for a taxpayer under this paragraph shall not exceed 25 percent of the tax due under this chapter for such taxpayer before any credits under N.H. Rev. Stat. § 77-A:5 are taken into account.