This bill introduces the "Child Day Care Creation Tax Credit" program in New Hampshire, designed to encourage businesses to create or expand child care services. Eligible businesses can claim a tax credit of 50% on qualifying expenditures for acquiring, constructing, or expanding child care facilities, as well as operational costs for the first two years of a new facility. The credit applies to both the Business Profits Tax and the Business Enterprise Tax, with a total cap of $5 million on credits issued per fiscal year. To qualify, businesses must create or expand child care seats that were not available before January 1, 2027, and must submit an application to the Department of Revenue Administration.

The bill also establishes definitions for key terms related to child care and outlines eligibility criteria for businesses. It allows unused credits to be carried forward for up to four years and amends existing tax laws by inserting new sections into RSA 77-A and RSA 77-E. While the bill does not specify deletions from current law, it emphasizes the need for the Department of Revenue Administration to develop an application and award process, including updates to business tax forms and the Revenue Information Management System. To support these changes, the Department is requesting an appropriation of $40,000. The act is set to take effect on July 1, 2026, and will apply to taxable periods ending on or after December 31, 2027.

Statutes affected:
HB1433 text: 77-A:5