This bill introduces several key provisions regarding carbon sequestration and timber tax revenue in New Hampshire. It defines "pre-sequestration timber tax revenue" as the average timber tax revenue received by municipalities over the five years prior to a landowner's commitment to a carbon sequestration program. Additionally, it establishes a moratorium on carbon sequestration contracts for landowners with parcels larger than 500 acres, effective from July 1, 2025, until the submission of a report by a newly formed commission. The commission will study the impacts of carbon sequestration on state and local tax revenue, forest management, and the logging industry, and will consist of various stakeholders, including legislative members and representatives from relevant organizations.

The bill also repeals existing provisions related to payments in lieu of taxes and the carbon sequestration programs study commission, while enacting new language to address these issues. Specifically, it allows landowners to make payments in lieu of taxes equal to the difference between pre-sequestration timber tax revenue and actual timber tax paid. The commission is tasked with examining the implications of carbon sequestration agreements, including their effects on taxation, forest management practices, and the competitiveness of New Hampshire's logging industry. The findings and recommendations from the commission are to be reported by November 1, 2027.

Statutes affected:
Introduced: 79:5
As Amended by the House: 79:1, 79:3
As Amended by the Senate: 79:1
Version adopted by both bodies: 79:1