This bill establishes a new tax credit program aimed at encouraging businesses in New Hampshire to create and expand child care services. The proposed legislation introduces a new chapter, Chapter 162-W, titled "Child Day Care Creation Tax Credit," which defines key terms such as "child care program," "creates child care," and "expands child care." Eligible businesses can claim a tax credit equal to 50% of qualifying expenditures related to acquiring, constructing, or expanding child care facilities, as well as operational expenditures for the first two years of a new facility. The total credits granted are capped at 50% of the business's total claimed expenditures, and unused credits can be carried forward for up to four years.

Additionally, the bill amends existing tax laws to incorporate the child day care creation tax credit into the Business Profits Tax (RSA 77-A) and the Business Enterprise Tax (RSA 77-E). Specifically, it adds new paragraphs to both tax codes that allow for the application of the child care tax credit against taxes due, ensuring that any unused portions of the credit can be applied to either tax. 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