This bill proposes to raise the funding cap for the New Hampshire Community Development Finance Authority by amending RSA 162-L:10, IV(b). The current cap on contributions eligible for tax credits is set at $5 million per state fiscal year, which will be increased to $10 million. Contributions exceeding this new cap will not be eligible for credit in the fiscal year they are received but can be carried forward to subsequent years, where they will be prioritized for credit eligibility.

The fiscal impact of this bill is estimated to result in a decrease in revenue for the state, with a maximum potential reduction of $3,750,000 in FY 2026 if the additional contributions are made. However, the long-term revenue impact remains indeterminable as it depends on the number of credits carried forward into future years. While the bill may decrease revenue from the Business Profits Tax, Business Enterprise Tax, and Insurance Premium Tax, the Community Development Finance Authority anticipates that the increased contributions will leverage additional federal funds and stimulate economic activity, ultimately benefiting state, county, and local revenues. The bill is set to take effect on July 1, 2025.

Statutes affected:
Introduced: 162-L:10