This bill introduces the Child Day Care Creation Tax Credit, designed to encourage New Hampshire businesses to create or expand child care programs. The credit, effective from July 1, 2026, applies to businesses that establish new child care seats or expand existing ones on or after January 1, 2027. Eligible businesses can claim a credit equal to 50% of qualifying expenditures related to child care facilities, with specific definitions provided for terms like "child care program," "creates child care," and "expands child care." The Department of Revenue Administration will oversee the credit's administration, including application and verification processes. The bill also amends existing tax laws to integrate this credit into the Business Profits Tax (RSA 77-A) and the Business Enterprise Tax (RSA 77-E), allowing businesses to carry forward any unused credit for up to four years.

Furthermore, the bill specifies eligible expenses for the credit, which include supplies, equipment, insurance, and other ordinary business operating costs, while excluding unrelated expenditures. It clarifies that the credit is not cascading, meaning its application to the Business Enterprise Tax will reduce the available credit for the Business Profits Tax. The Department of Revenue Administration is tasked with verifying eligible expenses and ensuring proper licensing for programs. While the bill is expected to decrease revenue for the General Fund and Education Trust Fund, the Department has indicated it can manage the implementation costs within its existing budget.

Statutes affected:
HB1433 text: 77-A:5