The proposed bill, known as the "Eat Local Act," aims to establish a tax credit against the business profits tax for grocery stores that purchase at least 10 percent of their products from registered farms in New Hampshire. The bill introduces a new subdivision to RSA 12-O, which mandates the Department of Business and Economic Affairs to create and maintain a publicly accessible, voluntary self-registry of local farms. The registry will include essential information about participating farms, such as their name, location, and types of agricultural products offered. Additionally, the bill defines key terms such as "grocery store," "registered farm," and "eligible purchase," and outlines the criteria for grocery stores to qualify for the tax credit.

The tax credit, detailed in a new section of RSA 77-A, allows grocery stores to claim a credit equal to 10 percent of the total amount paid to registered farms for qualifying products during a taxable period, provided they also reduce the sale price of these items by 10 percent. The credit cannot exceed the grocery store's business profits tax liability for that period, and any unused credit can be carried forward for up to five consecutive taxable periods. The bill also requires grocery stores to submit documentation to verify their eligibility for the credit. The act is set to take effect on July 1, 2026, and is expected to have an indeterminable impact on state revenue, with potential costs associated with the administration of the program.