The proposed bill establishes the New Hampshire College Graduate Retention Incentive Program, which aims to retain graduates from local higher education institutions and incentivize businesses to hire them. Key features of the program include a Student Loan Forgiveness Program that provides up to $5,000 annually (with a maximum of $20,000) for graduates employed full-time in high-need fields for at least three years, and a Graduation Incentive Rebate Program offering a $1,000 annual cash rebate for up to five years for graduates living and working in New Hampshire. Additionally, businesses hiring these graduates can receive a $500 rebate per hire and reimbursement for 50% of wages paid to interns from New Hampshire institutions. The bill introduces new legal language by adding sections 77 through 83 to RSA 12-O, which outline definitions, eligibility criteria, and the establishment of the New Hampshire College Graduate Retention Incentive Program Fund, supported by annual appropriations and 15% of annual profits from the New Hampshire Lottery.

Furthermore, the bill establishes the Business Hiring Incentive Program (BHIP), which offers a $500 Business Enterprise Tax (BET) rebate for each eligible New Hampshire graduate hired, available for up to two years per hire. The Department of Business and Economic Affairs (DBEA) is responsible for administering both programs, including determining eligibility and issuing rebates. However, the bill raises concerns regarding the potential conflict with Article 6-b of the New Hampshire Constitution, which mandates that lottery revenues be used exclusively for state aid to education. The estimated fiscal impact of the bill is approximately $4,500,000 per year, excluding administrative costs, with anticipated reductions in General Fund and Education Trust Fund revenues due to the new BET credit. The overall fiscal implications remain uncertain due to ambiguities in program structure and participant eligibility, as well as the absence of a cap on the program.

Statutes affected:
Introduced: 6:12