NH House reiterates call to cut R&D tax credit cap
After passing a bill to decrease cap in February, lawmakers do it again on April 12
The New Hampshire House sent a message last week that it wants companies engaged in research and development to pay more business taxes.
In a 170-165 vote, the House backed an amendment that would roll back the total R&D tax credit cap to $2 million, the amount it was before lawmakers had increased it to $7 million. Before that increase – which went into effect last year – businesses received a fraction of the tax credits they were entitled to. Last year, for the first time, they got nearly all of it.
This isn’t the first time the House voted to roll back the R&D credit, but in February, when it passed House Bill 1554 by a 182-143 margin, it was to fund a tax cut for individuals by increasing exemptions on the interest and dividends tax.
But on April 12, lawmakers voted to amend Senate Bill 411, which originally required businesses receiving the credit to complete a survey providing the type of research they are engaged in, the results of that research and the number of jobs created, among other information.
The amendment voted on that day doesn’t include a provision to increase the I&D tax exemption. It would just cut the R&D tax credit cap.
The Ways and Means Committee recommended passing the amended bill by one vote.
“This severely disrupts the state Department of Business and Economic Affairs’ efforts to recruit business to the state,” said Rep. Susan Almy, D-Lebanon.
But Rep. Bill Ohm, R-Nashua, urged his colleagues to vote for the amendment to confirm the House’s previous position.
Now it’s up to the Senate, which is already considering HB 1554, to accept the amended SB 411, reject it or try to hammer out a compromise.