The New Hampshire Research and Development Tax Credit Program was established in 2007. As of 2017, the maximum credit allowed for all taxpayers was $7,000,000 per year. The credit equals 10% of the qualified New Hampshire R&D Wage Expenses for the taxable year. Wages for which a credit is taken shall not also be eligible under the ERZTC (RSA 162-N:7).

Each taxpayer's share of the R&D tax credit shall not exceed $50,000 per fiscal year. Each credit shall be used to offset the taxpayer's tax liability within the subsequent 5 tax years.

Learn more about New Hampshire's R&D Tax Credit law the state's Department of Revenue Administration.

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R&D Tax Credit Available:

Yes

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Eligible Entities:

C-Corporations, S-Corporations, LLCs, Partnerships

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Deadline for Tax Filing:

Application (Form DP-165) due by 6/30 using online portal, Granite Tax Connect

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Data Required to Compute Credit:

Claim Period New Hampshire R&D Expenses (QREs)

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What Information is needed?

Federal Form 6765

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Credit Carryforward:

5 Years

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The R&D tax credit equals:

10% of qualified New Hampshire R&D wage expenditures (WQREs). The total credit cannot exceed $50,000 per year.

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Specific Items to Note:

The total amount requested by all applicants has exceeded the allowable award amount (currently $7,000,000) during every year of the program. The requested amounts are then prorated for all applicants who filed a completed application on time.

The business organization may take the credit awarded by the Department against business taxes due within the subsequent five taxable periods following the taxable period during which the qualified manufacturing research and development expenditures occurred, by attaching a copy of the R&D Award Letter to its business tax return.

The credit is first applied against the Business Profits Tax. Any remainder may be applied against the Business Enterprise Tax.

All applicants must attach a copy of their Federal Form 6765 with the DP-165. If your federal return is not due yet or you are filing on extension which interferes with the June 30 deadline, please submit a pro forma or draft copy of your Form 6765. This must be submitted with the application or it will be considered incomplete.

A determination of the award amount will be made by the Commissioner no later than September 30. Applicants will be notified by mail of award amounts granted to them by September 30. Taxpayers must attach a copy of the R&D award letter to their business tax return when they file and claim the credit on the DP-160.