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. The bill also establishes a new payment option for landowners, allowing them to make a payment in lieu of taxes that equals the difference between the pre-sequestration timber tax revenue and the actual timber tax paid. Additionally, the bill enacts a moratorium on carbon sequestration contracts for landowners with parcels larger than 500 acres, effective from July 1, 2025, until the completion of a study commission's report.

The bill creates a Carbon Sequestration Programs Study Commission tasked with examining the impacts of dedicating forest tracts to carbon sequestration. The commission will assess various factors, including the tax implications of such commitments, the effects on forest management practices, and the overall impact on New Hampshire's logging industry. The commission is required to report its findings and recommendations by November 1, 2027. Notably, the bill repeals existing provisions related to payments in lieu of taxes and the carbon sequestration programs study commission, indicating a significant restructuring of the legal framework surrounding these issues.

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
CHAPTERED FINAL VERSION: 79:1