This bill establishes an off-site infrastructure improvement tax credit for business organizations that construct or fund qualified off-site infrastructure improvements benefiting the public, contingent upon municipal approval. The new legal language inserted into RSA 77-A:5 includes a provision for this tax credit, which is designated as paragraph XVIII. The credit is limited to the organization’s tax liability for the year, and any unused credit can be carried forward for up to 20 years. Additionally, the commissioner of the Department of Revenue Administration is tasked with adopting rules for the documentation and verification of eligible improvements and the calculation of the credit.

The bill is set to take effect on April 1, 2027, and is expected to have an indeterminable impact on state revenue, particularly affecting the General Fund and Education Trust Fund starting in fiscal year 2028. The Department of Revenue Administration notes that the bill lacks clarity on what constitutes "qualified" improvements and suggests that additional legislative guidance may be necessary. Furthermore, while the bill does not impose any caps on the credit or require an application process, it may lead to decreased municipal expenditures if businesses opt to fund infrastructure projects that would typically be financed by municipalities.

Statutes affected:
Introduced: 77-A:5
HB1646 text: 77-A:5