The bill, known as the One, Big, Beautiful Bill Act (OBBBA), introduces significant changes to the funding and eligibility criteria for scholarship granting organizations and workforce training programs in New Hampshire. It mandates the Department of Revenue Administration to participate in a federal income tax credit for contributions to qualified scholarship granting organizations starting in taxable years after December 31, 2026. Additionally, the Department of Education is tasked with creating a list of these organizations and establishing rules for their inclusion. The bill also requires the governor to approve workforce training programs for federal Workforce Pell Grants, while prohibiting state aid for academic programs classified as "low-earning outcome programs." The Board of Trustees of the University System of New Hampshire and the Higher Education Commission must adopt rules to ensure that no state funds are allocated to such programs, which could significantly impact funding and enrollment based on median earnings criteria.

Furthermore, the bill introduces a new individual tax credit provision allowing taxpayers to claim a credit for "qualified contributions" of up to $1,700 per tax year, which will be reduced by any amount claimed on the state tax return. The Department of Business and Economic Affairs and the State Workforce Innovation Board will collaborate with the governor to approve workforce training programs and establish rules for program approval and appeals. The bill anticipates expenditures between $500,000 and $1,000,000 in FY 2027 for implementation, with potential revenue losses for institutions like the Community College System of New Hampshire if low-earning programs are discontinued. The ambiguity surrounding the definition of "eligible workforce training programs" may also lead to significant fiscal impacts, with estimates of revenue reductions ranging from $500,000 to over $2.5 million, depending on the final definitions established through the rule-making process.

Statutes affected:
Introduced: 21-I:1-a
HB1774 text: 21-I:1-a