New Hampshire R&D Tax Credit (against BPT)

New Hampshire R&D Tax Credit (against BPT)

Supports New Hampshire companies through state tax credits for innovation programs.

Eligibility · United States · US-NH

The New Hampshire Research and Development Tax Credit is a state tax credit program administered by the New Hampshire Department of Revenue Administration (DRA) under RSA 77-A:5 XIII (Business Profits Tax) and RSA 77-E:3-b (Business Enterprise Tax), originally enacted by SB 134 (Chapter 271, Laws of 2007). The credit equals 10% of the amount by which a business organization's qualified manufacturing R&D expenditures exceed its base amount in the applicable tax year, subject to a per-taxpayer cap of $50,000 per fiscal year. If the total of all valid applications in a given year exceeds the statewide annual cap of $7 million, DRA pro-rates all approved credits proportionally.

Eligibility is limited to business organizations with qualifying manufacturing research and development expenditures in New Hampshire; wages for which the Coos County Economic Revitalization Zone Tax Credit (RSA 162-N:7) was claimed cannot be double-counted. The credit offsets Business Profits Tax and Business Enterprise Tax liability; unused credits carry forward up to five tax years. Unlike most state R&D credits, this program requires a formal annual application: taxpayers must file Form DP-165 through the Granite Tax Connect (GTC) online portal at gtc.revenue.nh.gov, or by paper, by June 30 of the year following the tax year in which qualifying R&D occurred. The statewide cap has grown from $1 million (FY 2007–2013) to $2 million (FY 2014–2016) to the current $7 million level since FY 2017, indicating a maturing but still-constrained program.

The New Hampshire R&D credit is most accessible to small and mid-size manufacturing-oriented businesses conducting qualifying research in the state. The $50,000 per-taxpayer ceiling means the program delivers modest credits relative to R&D spend — companies investing several million dollars annually in qualifying research will hit the per-firm cap quickly. Organizations should apply promptly after fiscal year-end, as the $7M statewide cap is allocated on a first-come, first-served (or pro-rata) basis, and the June 30 deadline is firm. Pending legislation (SB-276, 2025) may alter application mechanics; applicants should confirm current rules with DRA before filing.