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 taxable period. For taxable periods ending on or after December 31, 2022, the maximum credit is set at 500 percent of the total tax liability. The bill progressively reduces the maximum credit percentage for subsequent years, changing it from 450 percent for periods ending on or after December 31, 2029, to 400 percent for periods ending on or after December 31, 2031, 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 and 100 percent for the specified taxable periods and replaces them with higher limits, while also introducing new limits for future years. The remainder of any overpayment will continue to be refunded to the taxpayer. The act is set to take effect 60 days after its passage, with an effective date of July 27, 2026.

Statutes affected:
Introduced: 77-A:7
Version adopted by both bodies: 77-A:7
CHAPTERED FINAL VERSION: 77-A:7