R&D Tax Credits
in New Hampshire

The Business Profits Tax is the first tax that receives the credit under the New Hampshire R&D Tax Credit, and the Business Enterprise Tax receives any remaining funds. A percentage of 10% eligible manufacturing R&D expenses or a specific monetary amount of $50,000 whichever is less, is the credit amount. To ensure the viability of the programme, all credits for a fiscal year will be proportionately lowered if the total amount of credit requests surpasses a certain threshold. The state promotes firms to invest in R&D initiatives that foster innovation and growth by lowering their tax obligations. This tax credit programme is a great method to encourage economic growth and a business-friendly environment in New Hampshire.

The New Hampshire R&D tax credit is initially applied to the Business Professional Tax, but any unused portion can be carried over to the Business Enterprise Tax. Although not an incremental credit, taxpayers need to include a copy of their R&D award letter with their business tax return and claim the credit on the DP-160 and/or Business Enterprise Tax return.

Commercial entities including C-Corporations, S-Corporations, LLCs, Partnerships, and pass-throughs that incur expenses throughout the fiscal year and are subject to Business Profits Tax are eligible for the New Hampshire R&D Tax Credit.

Wages paid to business organisation workers for services provided in New Hampshire that qualify and are reported as a credit by the business organisation under section 41 of the Internal Tax Code are referred to as “qualified manufacturing research and development” expenditures.