Running a business in New Hampshire has distinct tax advantages, like no sales or franchise tax and a relatively low corporate tax rate. In fact, the Tax Foundation ranks New Hampshire sixth in the nation—and first in New England—for its overall business tax climate.
The Granite State also has a handful of business tax credits and exemptions for business owners. Check out the business tax programs listed below.
Quick Links
New Hampshire business tax incentives
Economic Revitalization Zone Tax Credit
The Economic Revitalization Zone Tax Credit offers New Hampshire businesses a short-term tax credit for projects that improve infrastructure and create jobs in designated municipality areas.
To qualify for the credit, you must create at least one new full-time incremental job in one of the state’s designated economic revitalization zones and make a significant capital investment in a project. Most projects are related to new construction, equipment, expansion, or renovation. The credit amount you receive depends on the number of jobs you create, their salaries, and the capital investment you make.
You must apply for February 10 (for the prior year) to be considered for the credit. Learn more about the application process here and download the forms you need here.
Coos County Job Creation Tax Credit
The Coos County Job Creation Tax Credit is available to businesses that hire new full-time employees in Coos County and pay them wages at least 200% higher than the state minimum wage, which is $7.24 per hour.
The credit is $750 for each employee hired whose pay is between $10.88–4.50 per hour. The credit increases to $1,000 for each qualified employee hired whose pay is equal to or greater than $14.50 per hour.
Apply for the credit here.
See a complete list of every state’s minimum wage.
New Hampshire Research and Development Tax Credit
New Hampshire’s Research and Development (R&D) Tax Credit is available to New Hampshire businesses with qualified expenditures on manufacturing R&D activities. Similar to the federal R&D tax credit, qualified manufacturing R&D activities in New Hampshire must meet the following requirements:
- Be technological in nature;
- Used to improve the functionality, performance, reliability, or quality of a new or existing business component;
- Used to gather information that will help eliminate uncertainty around the development of a product; and
- Involve a process of experimentation, such as testing or modeling.
The credit amount equals 10% of your business’s qualified manufacturing R&D expenses or $50,000, whichever amount is smaller. You can read through FAQs about the credit—and find out how to apply—here. Applications are due by June 30 of the year following the year you incurred the R&D expenses.
Related: Tips on how to use the R&D credit
Community Development Finance Authority Tax Credit Program
New Hampshire’s Community Development Finance Authority (CDFA) has a tax credit program that serves non-profits throughout the state. New Hampshire businesses that donate to selected projects can get a credit of 75% of their contribution.
If you qualify for the credit, you can apply it against your Business Profits Tax, Business Enterprise Tax, or insurance premium.
Learn more about the program here, and see a list of current projects to donate to here.
New Hampshire Education Tax Credit Program
Businesses in New Hampshire can get a tax credit for donating to state-approved scholarship organizations. The credit equals 85% of a business’s donation amount (with a maximum donation of $600,000).
Learn more about the program here.
Career and Technical Education Tax Credit
The Career and Technical Education Tax Credit allows businesses in New Hampshire to donate time, money, and goods to career and technical education (CTE) centers to receive tax credits against their business profit taxes.
The credits are equal to:
- Up to 50% for salaries and students and supervisors participating in work-based learning experiences
- Up to 100% for supplies and equipment donated for related use to a CTE center educational program
- Up to 50% of the cost of apprenticeship and training programs offered by the CTE center
See details on the tax credit here.
Granite State Paid Family and Medical Leave Plan Tax Credit
This tax credit rewards businesses for giving their employees family and medical leave insurance coverage. Under the program, eligible businesses can get a tax credit equal to 50% of their employer-sponsored family and medical leave insurance premium.
You can apply the credit toward your Business Enterprise Tax if you get the credit. Get more details here.
Want to set up an employee leave policy? Here’s what you need to know.
New Hampshire business tax exemptions
Regenerative Manufacturing Tax Exemption
New Hampshire has a Regenerative Manufacturing Tax Exemption available to qualified businesses involved in the regenerative manufacturing field. If your business qualifies, you’re exempt from paying your business profits and enterprise taxes for 10 years.
New Hampshire city and county business tax credits
New Hampshire business tax incentive programs are also available at the local level. Find your city website to search for local business tax credits and incentives.
Business financing in New Hampshire
Whether your most pressing business goal is stability or expansion, funding can help. New Hampshire has a handful of state business loan and grant programs available to small businesses. To find out what you’re eligible for, read Gusto’s guide to grants and loans in The Granite State.
You may also want to check out these blog posts for more information on running a business in New Hampshire: