New Hampshire State R&D Tax Credit
Refundable Tax Credit – No
In New Hampshire, a Research & Development tax credit is allowed for qualified manufacturing R&D expenditures made or incurred during the fiscal year, however:
- The aggregate of tax credits issued to the taxpayers must not exceed $1 million for any fiscal year prior to May 20, 2013; $2 million after May 20, 2013 and before July 1, 2017; and $7 million starting on July 1, 2017
- Each credit will be used to offset the taxpayer’s tax liability within the subsequent five tax years
- The amount of the credit will be the lesser of: (a) 10% of the excess of the qualified manufacturing research and development expenses for the tax year over the base amount; (b) the proportional share of the maximum aggregate credit amount allowed in (1); (c) $50,000
- Any unused research and development tax credit not applied against the business profits tax liability can be used to offset the taxpayer’s business enterprise tax liability
- Applications must be postmarked no later than June 30 following the tax year during which the research and development occurred and a determination on the final amount of the credit awarded to each taxpayer claiming the credit will be made no later than September 30 of each year
Qualified manufacturing research and development expenditures means any wages paid or incurred to an employee of the business organization for services rendered by this employee within New Hampshire provided that:
- The wages will be treated as wages for qualified research expenses under IRC §41(b)
- The services are undertaken to discover information that constitutes qualified research and development of a new or improved manufacturing processor business component of the business organization
- The wages qualify and are reported as a credit by the business organization under IRC §41
- The wages are reported by the business organization in the enterprise value tax base
Unused portions of the credit may be carried forward for up to five years.
How to obtain the credit?
Taxpayers can apply for the tax credit on Form DP-165, Research and Development Tax Credit Application, which must be accompanied by information or records required by the Commissioner.
Find out if you qualify for the R&D tax credit
SELL YOUR NOL’s AND R&D CREDITS
If your company hasn’t considered the R&D credit in the past because you have net operating losses (NOLs) and could not utilize the credit contact us today to find out which states allow you to sell your credits and losses for up to 95 cents on the dollar. Also, qualified start-up companies can now take a credit on their payroll taxes for their R&D credit, allowing your company to utilize the R&D credit immediately, even if your company does not have taxable income.
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