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 in lieu of taxes option for landowners, allowing them to pay the difference between their actual timber tax and the pre-sequestration timber tax revenue. Additionally, it enacts a moratorium on carbon sequestration contracts for land parcels over 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 implications of dedicating forest land to carbon sequestration. The commission will assess various factors, including the impact on state and local tax revenue, forest management practices, and the logging industry. It will consist of members from the legislature, state departments, and public representatives with relevant experience. 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