RSA tit. XII, ch. 162-W — CHILD DAY CARE CREATION TAX CREDIT | New Hampshire Revised Statutes Annotated (through the 2026 regular session) — New Hampshire

RSA 162-W:1 Short Title.

162-W:1. Short Title. This chapter may be known and cited as "The Child Day Care Creation Tax Credit Program." Source. 2026, 227:2, eff. July 1, 2026.

RSA 162-W:2 Definitions.

162-W:2. Definitions. In this chapter: I. "Child care program" shall have the same meaning as group child day care center under RSA 170-E:2, IV(c). II. "Creates child care" means making available child care seats in a New Hampshire-licensed child care program by a business entity, either directly or through a third-party, where such child care program was not available prior to January 1, 2027. III. "Expands child care" means the increase in the number of child care seats in a child care program made available by a business entity, either directly or through a third party, provided that such increase provides 12 or more seats that were not available prior to January 1, 2027. IV. "Operational expenditures" means the operating expenses of a qualified childcare facility, including employee compensation, expenses for training of employees, utilities, rent, and other ordinary business operating expenses. Source. 2026, 227:2, eff. July 1, 2026.

RSA 162-W:3 Child Care Creation Tax Credit Established.

162-W:3. Child Care Creation Tax Credit Established. I. There shall be allowed a child care creation tax credit for eligible businesses, pursuant to this section, for qualifying expenditures made during a taxable year as follows: (a) Expenditures in acquiring, constructing, rehabilitating, renovating, or expanding property to create child care or expand child care; and (b) Operational expenditures for the first 2 years of a new child care facility, or for existing facilities, the increased operational expenditures as calculated compared towards the difference between current year's operational expenditures and that of the average yearly expenditures over the period of the 2 years prior. Allowable operational expenditures shall exclude expenditures not directly related to the new or expanded seats, such as the addition of new programs or services. II. A business may claim a credit equal to 50 percent of its total claimed expenditures in subparagraphs I(a) and (b) against its business profits taxes due under RSA 77-A, against its business enterprise taxes due under RSA 77-E, or apportioned against each, provided the total credits granted shall not exceed 50 percent of the businesses' total claimed expenditures under subparagraphs I(a) and (b). The credit applied to the business enterprise taxes due under RSA 77-E shall still be considered taxes paid under RSA 77-E. III. Unused portions of the credit allowed under this section may be carried forward for 4 successive years if the amount allowable as a credit exceeds the businesses' tax liability in a tax year. IV. A business which operates, or contracts for the operation of, a child care program through a third party for the primary purpose of providing child care services to its employees may apportion the available credit in a manner of its choosing, but shall be required to file a joint application with the department of revenue administration in doing so. V. The commissioner of the department of revenue administration shall adopt rules, pursuant to RSA 541-A, relative to administration of the child care creation tax credit established under this section. Such rules shall include regulations or procedures regarding: (a) The application procedure for how a business may apply for a tax credit under this section. (b) The design and content of the form or forms required to be filed with the department under this section. The form or forms required to be filed shall contain, at a minimum: (1) The business's name, address, and federal taxpayer identification number. (2) A contact person's name, title, and phone number. (3) A signed statement that the business has met the eligibility requirements for the child care tax credit, and will comply with the provisions of this chapter. (c) Verifying eligible expenses made by a child care program, including requiring a basic schedule of expenses that would be further examined during the audit process. (d) Verifying with the department of health and human services that a child care program was duly licensed. (e) Filing and record keeping requirements. (f) Posting to the department's website an up-to-date total of the amount of credits available. VI. The aggregate of tax credits issued by the commissioner to all taxpayers claiming the credit shall not exceed $5,000,000 for any state fiscal year. Applications are to be processed by the commissioner in the order received. Applications received by the department in excess of $5,000,000 in any state fiscal year shall not be eligible for credit in such fiscal year but may be carried forward to the next succeeding fiscal year or years and shall be given priority in determining the total contributions eligible for credit in such fiscal year. VII. The department of revenue administration shall approve or deny an application for a credit made under this section within 60 days of receipt. The department shall deny any application that fails to meet the requirements of this chapter and shall notify the business of its reason or reasons for denial. Source. 2026, 227:2, eff. July 1, 2026.

RSA 162-W:4 Eligibility Criteria.

162-W:4. Eligibility Criteria. I. To be eligible for a tax credit under this chapter, a business entity shall: (a) Create or expand child care seats, either directly or through a third party, on or after January 1, 2027; (b) Submit a satisfactory child care creation tax credit application to the department of revenue administration. Source. 2026, 227:2, eff. July 1, 2026.