This bill amends the current law regarding the maximum award of tax credits for overpayment of due taxes. Specifically, it modifies RSA 77-A:7, I(b) to establish new limits on tax credits based on the total tax liability for various taxable periods. The bill introduces a tiered structure for tax credits, allowing a maximum of 500 percent of the total tax liability for periods ending on or after December 31, 2022, and gradually decreasing the allowable credit percentage for subsequent years. For instance, the maximum credit will decrease to 450 percent for periods ending on or after December 31, 2029, and further down to 150 percent for periods ending on or after December 31, 2041.

Additionally, the bill deletes the previous maximum credit percentages of 250 percent for 2029 and 100 percent for 2031, replacing them with higher limits of 450 percent and 400 percent, respectively. New provisions are also added to establish credit limits for future taxable periods, including 350 percent for 2033, 300 percent for 2035, 250 percent for 2037, 200 percent for 2039, and 150 percent for 2041. The act is set to take effect 60 days after its passage.

Statutes affected:
Introduced: 77-A:7