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, and the bill seeks to increase this limit 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 projected to result in a decrease in revenue for the state, with an estimated reduction of up to $3,750,000 in FY 2026 if the additional contributions are made. However, the long-term effects on revenue are indeterminable, as it is unclear how many credits may be carried forward into future years. While the bill is expected to decrease revenue from the Business Profits Tax, Business Enterprise Tax, and Insurance Premium Tax, it is anticipated that the increased contributions will leverage additional federal funds and stimulate economic activity, potentially generating new jobs and benefiting state, county, and local revenues in the long run. The act is set to take effect on July 1, 2025.

Statutes affected:
Introduced: 162-L:10