1 District; Energy Efficiency and Clean Energy Districts. Amend RSA 53-F:1, II to read as follows:

II. "District" means an energy efficiency and clean energy district established under this chapter.

2 Definitions; Qualifying Improvement. Amend RSA 53-F:1, III to read as follows:

III.

"Energy conservation and efficiency improvements" means measures to reduce consumption, through conservation or more efficient use, of electricity, fuel oil, natural gas, propane, or other forms of energy on or off the property, including but not limited to air sealing, installation of insulation, installation of heating, cooling, or ventilation systems meeting or exceeding ENERGY STAR standards, building modifications to increase the use of daylighting, replacement of windows with units meeting or exceeding ENERGY STAR standards, installation of energy controls or energy recovery systems, and installation of efficient lighting equipment, provided that, to be covered by an agreement with a property owner and financed under this chapter, all such improvements must be permanently affixed to a building or facility that is part of the property and shall be qualifying improvements under RSA 53-F:6.

3 Adoption by Municipality. Amend RSA 53-F:2, IV to read as follows:

IV. The language of the question shall designate an energy efficiency and clean energy district, which may cover all or a portion of the area within the municipality, or may designate all or a portion of the area within the municipality as part of an energy efficiency and clean energy district that encompasses all or portions of multiple municipalities.

4 Authority. Amend RSA 53-F:3 to read as follows:

53-F:3 Authority.

To achieve the public benefits of protecting the economic and social well-being by reducing energy costs in the community and risks to the community associated with future escalation in energy prices, and addressing the threat of global climate change, any municipality which has adopted the provisions of this chapter and established an energy efficiency and clean energy district may, upon a finding by the governing body of the municipality, after notice and hearing, that the energy conservation and efficiency and clean energy improvements will serve the public purposes as set forth in this chapter and not primarily be for the benefit of private persons or uses even though such private benefits and uses may incidentally result, do the following:

I. A municipality which adopts this chapter shall thereafter be authorized to establish one or more energy efficiency and clean energy districts.

II. Encourage private financing from individuals or institutions for qualifying improvements to eligible properties within the district and enter into agreements with those private lenders to administer the energy conservation and efficiency improvements or clean energy improvements program on their behalf, including evaluating eligible properties, supervising the improvements, arranging for the closing of the loans, collecting the special assessments, and assisting them with the exercise of their lienholder rights, provided that anticipated expenses for the administration of the program shall be borne by the owners of eligible properties participating in the program.

III. Participate in state or federal programs providing support for municipal energy efficiency and clean energy finance programs such as those authorized by this chapter.

IV. Enter into agreements with owners of eligible property in which the owners consent to make energy conservation and efficiency improvements or clean energy improvements to their properties and to have the municipality include a special assessment to pay for such improvements on their property tax bills, their bills for water or sewer service or another municipal service, or separate bills, provided that such agreements shall not affect the tax liability or municipal services charges of other participating or nonparticipating property owners in the district.

V. Collect charges from participating owners of eligible properties to cover the cost of administration for the district.

VI. Otherwise administer a program for promoting and financing energy efficiency and clean energy improvements within a district in accordance with this chapter, enter into an agreement with a public or private entity to administer such a program on its behalf in accordance with this chapter, and enter into an agreement with one or more other municipalities to share services and otherwise cooperate in the administration of a district or districts in accordance with this chapter.

VII. Adoption of a clean energy efficiency and clean energy district shall include a commercial property assessed clean energy (C-PACE) model implemented according to the most recent U.S. Department of Energy (DOE) released best practice guidelines for PACE financing programs.

5 Agreement With Property Owner. Amend RSA 53-F:4, I(b) to read as follows:

(b) An agreement with an owner of eligible property shall provide that the owner shall contract for qualifying improvements with one or more qualified contractors, purchase materials to be used in making qualified improvements, or both, and that, upon submission of documentation required by the municipality, the municipality shall disburse funds to those contractors and vendors in payment for the qualifying improvements or materials used in making qualified improvements. An For energy conservation and efficiency improvements agreement with a property owner shall require that the property owner report post-installation energy use data for program evaluation purposes over a period determined by the municipality. For flood resiliency improvements an agreement with a property owner shall require that the property owner file a report confirming that all agreed upon improvements have been completed.

6 Eligibility of Property Owners. Amend RSA 53-F:5, II to read as follows:

II. Prior to entering into an agreement with an owner of eligible property, the municipality shall determine that:

(a) all All property taxes and any other assessments levied with property taxes are current and have been current for 3 years or the owner's period of ownership, whichever is less; that there are no involuntary liens such as mechanic's liens on the property; and that no notices of default or other evidence of property-based debt delinquency have been recorded during the past 3 years or the property owner's period of ownership, whichever is less.

(b) The municipality shall adopt additional criteria, appropriate to property-assessed clean energy finance programs. The municipality shall determine whether any mortgages or liens of record exist in the registry of deeds on the property, whether they are current in the obligations, and whether the total debt to equity ratio specified by the private lender will be met. If any such mortgage or lien exists, the municipality shall notify each such mortgagee or lienholder in writing that a private lender is considering making a loan secured by a municipal lien pursuant to the provisions of this chapter and request the consent of each such mortgagee or lienholder to the making of such loan. Each mortgagee or lienholder shall have the right to determine in its sole discretion whether or not it will consent to such loan. If all of the mortgagees or lienholders of record elect to consent, the consents shall be in writing and recorded with the municipal lien in the registry of deeds. The legal effect of having all consents shall be that the municipal lien shall not be extinguished in the event of a foreclosure or sheriff's sale by the mortgagee or lienholder as provided in RSA 53-F:8. If all of the mortgagees or lienholders of record do not consent, but the private lender determines that it will proceed in making such loan, then in the event of a foreclosure or sheriff's sale by a mortgagee or lienholder, the municipal lien shall be extinguished.

(c) The municipality shall adopt additional criteria, appropriate to C-PACE and R-PACE programs.

7 Qualifying Improvements. Amend RSA 53-F:6, I-III to read as follows:

I. Improvements financed pursuant to an agreement under this chapter shall be based upon an audit performed by a person who has been certified as a building analyst by the Building Performance Institute or who has obtained other appropriate certification as determined by the department of energy or another appropriate New Hampshire-based entity. The audit shall identify recommended energy conservation and efficiency and clean energy improvements or flood resiliency improvements; provide the estimated energy cost savings, useful life, benefit-cost ratio, and simple payback or return on investment for each improvement; and provide the estimated overall difference in annual energy costs with and without recommended improvements. Financed improvements shall be consistent with the audit recommendations. The cost of the audit may be included in the total amount financed under this chapter.

II. Improvements shall be permanently affixed to an existing building or facility that is part of the eligible property. The owner of the property may not finance projects in buildings or facilities under new construction.

III. Improvements shall be made by a contractor or contractors, which may include a cooperative or not-for-profit organization, determined by the municipality to be qualified to make the energy efficiency or clean energy improvements or flood resiliency improvements in the agreement. Contractors may be designated as qualified by an electric or gas utility program or another appropriate New Hampshire-based entity. Any work requiring a license under any applicable law shall be performed by an individual holding such license. A municipality may elect to permit the financing pursuant to an agreement under this chapter of improvements made by the owner of the property, but shall not permit the value of the owner's labor to be included in the amount financed.

8 Financing Terms. Amend RSA 53-F:7, I to read as follows:

I. Improvements shall be financed pursuant to an agreement under this chapter only on terms such that the total [energy] cost savings realized by the property owner and the property owner's successors during the useful lives of the improvements are expected to exceed the total cost to the property owner and the property owner's successors of the improvements.

9 Priority; Collection and Enforcement. Amend RSA 53-F:8 to read as follows:

53-F:8 Priority; Collection and Enforcement. Collection of special assessments under this chapter shall be made by the tax collector or other official responsible for property tax or municipal service charge collection. A municipality shall commit bills for amounts due on the special assessments, including interest and any charges, to the tax collector with a warrant signed by the appropriate municipal officials requiring the tax collector to collect them. Each year bills for amounts due on the special assessments shall coincide with bills for property taxes or municipal service charges. Each special assessment imposed under a [clean energy efficiency and clean energy] district program pursuant to an assessment contract, including any interest on the assessment and any penalty, shall, upon recording of the assessment contract in the county in which the district area is located, constitute a lien against the property on which the assessment is imposed until the assessment, including any interest or penalty, is paid in full. The lien of the assessment contract shall run with the property until the assessment is paid in full and a satisfaction or release for the same has been recorded by the town, city, or district or its program administrator and shall have the same lien priority and status as other property tax and special assessment liens as provided in RSA 80. The town, city, or district, or any permitted assignee, shall have all rights and remedies in the case of default or delinquency in the payment of an assessment as it does with respect to delinquent property taxes and other delinquent special assessments as set forth in RSA 80, except that all prior recorded mortgages or liens shall retain priority over the lien of the assessment contract unless all such mortgagees or lienholders of record have consented to the lien as provided for in RSA 53-F:5.

10 New Subdivision; Flood Resiliency Improvement Exemption. Amend RSA 72 by inserting after section 87 the following new subdivision:

Flood Resiliency Improvement Exemption

72:88 Definition of Flood Resiliency Improvement. For purposes of an exemption under RSA 72:89, in this subdivision "flood resiliency improvement" means providing flood and water damage mitigation and resiliency improvements, prioritizing repairs, replacement, or improvements that qualify for reductions in flood insurance premiums, including raising a structure above the base flood elevation to reduce flood damage; constructing a flood diversion apparatus, drainage gate, or seawall improvement, including seawall repairs and seawall replacements; purchasing flood damage-resistant building materials; or making electrical, mechanical, plumbing, or other system improvements that reduce flood damage.

72:89 Exemption for Flood Resiliency Improvement. Each city and town may adopt under RSA 79-E an exemption from the assessed value, for property tax purposes, for real property which is includes a flood resiliency improvement as defined in RSA 72:88. The value of such exemption shall not exceed the value of the flood resiliency improvement made and shall attach to the property and not the property owner.

72:90 Flood Resiliency Improvement Credit. In addition to or in place of an exemption for flood resiliency improvement as provided under RSA 72:89, each city and town may, upon adoption pursuant to RSA 72:27-a, offer an annual property tax credit of between $100 and $1,000 for a period of not to exceed 5 years. The accumulated value of such credit over the period it is offered shall not exceed the value of the flood resiliency and the credit shall attach to the property and not the property owner.

11 Application for Exemption or Tax Credit. Amend the introductory paragraph of RSA 72:33, I to read as follows:

I. No person shall be entitled to the exemptions or tax credits provided by RSA 72:28, 28-b, 28-c, 29-a, 30, 31, 32, 35, 36-a, 37, 37-a, 37-b, 38-b, 39-b, 62, 66, [and] 70, and 89 unless the person has filed with the selectmen or assessors, by April 15 preceding the setting of the tax rate, a permanent application therefor, signed under penalty of perjury, on a form approved and provided by the commissioner of revenue administration, showing that the applicant is the true and lawful owner of the property on which the exemption or tax credit is claimed and that the applicant was duly qualified upon April 1 of the year in which the exemption or tax credit is first claimed, or, in the case of financial qualifications, that the applicant is duly qualified at the time of application. The form shall include the following and such other information deemed necessary by the commissioner:

12 Procedure for Adoption Modification, or Rescission. Amend the introductory paragraph of RSA 72:27-a, I to read as follows:

I. Any town or city may adopt the provisions of RSA 72:28, RSA 72:28-b, RSA 72:29-a, RSA 72:35, RSA 72:37, RSA 72:37-b, RSA 72:38-b, RSA 72:39-a, RSA 72:62, RSA 72:66, RSA 72:70, RSA 72:76, RSA 72:82, RSA 72:85, [or] RSA 72:87, RSA 72:80, or RSA 72:90 in the following manner:

13 Appeal from Refusal to Grant Exemption, Deferral, or Tax Credit. Amend RSA 72:34-a to read as follows:

72:34-a Appeal From Refusal to Grant Exemption, Deferral, or Tax Credit. Whenever the selectmen or assessors refuse to grant an applicant an exemption, deferral, or tax credit to which the applicant may be entitled under the provisions of RSA 72:23, 23-d, 23-e, 23-f, 23-g, 23-h, 23-i, 23-j, 23-k, 28, 28-b, 28-c, 29-a, 30, 31, 32, 35, 36-a, 37, 37-a, 37-b, 38-a, 38-b, 39-a, 39-b, 41, 42, 62, 66, [or] 70, 89, or 90 the applicant may appeal in writing, on or before September 1 following the date of notice of tax under RSA 72:1-d, to the board of tax and land appeals or the superior court, which may order an exemption, deferral, or tax credit, or an abatement if a tax has been assessed.

14 New Section; Flood Resilience Investment Funds. Amend RSA 72 by inserting after section 11-a the following new section:

72:11-b Flood Resilience Investment Funds.

I. The legislative body of a municipality may vote to apply and collect a municipal flood resilience fee on each property within the entire town or city or within only a designated flood resiliency district as defined in RSA 53, for deposit into a flood resilience investment fund. The fee may be collected as an additional assessment on the assessed value of all property in the designated flood resilience district of up to $0.50 per $1,000 assessed valuation. Enforcement powers for nonpayment shall be the same as those provided under RSA 31:39-c, RSA 31:39-d, and RSA 47:17-b, relative to enforcement of ordinances.

II. The revenues collected shall be deposited in a flood resilience investment fund established by the municipality under the provisions of RSA 31:95-c or RSA 47:1-b. Such flood resilience investment fund shall be structured in such a way that other sources of public and private funding intended to address risks from flooding in the flood resilience district may be deposited into it and so that funding (through grants or below market loans) can be provided to individuals and businesses within the flood resiliency districts who are intending to invest in qualifying flood resilience improvements.

15 Appropriation; Statewide Economic Impact Study. The sum of $500,000 for the fiscal year ending June 30, 2026 is hereby appropriated to the department of business and economic affairs to fund a statewide analysis of the costs and benefits of flood risk and flood risk mitigation efforts. This study shall include a comprehensive analysis of the fiscal and economic impacts of flood risk mitigation across all flood-prone properties in New Hampshire; an assessment of statewide property elevation strategies, examining varying flood risks, property values, and climate projections like sea-level rise; quantifying benefits such as reduced damages, increased property values, and enhanced tax revenues, while highlighting the costs of inaction, including displacement and economic decline; equipping policymakers with data to guide flood mitigation investments using GIS mapping, climate modeling, and economic forecasting; forecasting the economic ripple effects of mitigation measures--such as job creation and insurance premium savings--and prioritizing high-risk areas for targeted action; and emphasizing the long-term economic benefits of proactive adaptation. This effort aims to position New Hampshire as a leader in climate resilience and sustainable growth. This appropriation shall be offset by any federal or private grants the department is able to secure for this purpose. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.

16 Effective Date. This act shall take effect upon its passage.

1 District; Energy Efficiency and Clean Energy Districts. Amend RSA 53-F:1, II to read as follows:

II. "District" means an energy efficiency and clean energy , or flood resilience district established under this chapter.

2 Definitions; Qualifying Improvement. Amend RSA 53-F:1, III to read as follows:

III. " Qualifying improvement" means:

(a) "Energy conservation and efficiency improvements" means measures to reduce consumption, through conservation or more efficient use, of electricity, fuel oil, natural gas, propane, or other forms of energy on or off the property, including but not limited to air sealing, installation of insulation, installation of heating, cooling, or ventilation systems meeting or exceeding ENERGY STAR standards, building modifications to increase the use of daylighting, replacement of windows with units meeting or exceeding ENERGY STAR standards, installation of energy controls or energy recovery systems, and installation of efficient lighting equipment, provided that, to be covered by an agreement with a property owner and financed under this chapter, all such improvements must be permanently affixed to a building or facility that is part of the property and shall be qualifying improvements under RSA 53-F:6.

(b) "Flood resiliency improvement" means providing flood and water damage mitigation and resiliency improvements, prioritizing repairs, replacement, or improvements that qualify for reductions in flood insurance premiums, including raising a structure above the base flood elevation to reduce flood damage; constructing a flood diversion apparatus, drainage gate, or seawall improvement, including seawall repairs and seawall replacements; purchasing flood damage-resistant building materials; or making electrical, mechanical, plumbing, or other system improvements that reduce flood damage.

3 Adoption by Municipality. Amend RSA 53-F:2, IV to read as follows:

IV. The language of the question shall designate the district, which may cover all or a portion of the area within the municipality, or may designate all or a portion of the area within the municipality as part of a district that encompasses all or portions of multiple municipalities.

4 Authority. Amend RSA 53-F:3 to read as follows:

53-F:3 Authority.

To achieve the public benefits of protecting the economic and social well-being by reducing energy costs and enhancing resiliency in the community and risks to the community associated with future escalation in energy prices, threats to public and private property from more frequent and severe flooding, and addressing the threat of global climate change, any municipality which has adopted the provisions of this chapter and established a district may, upon a finding by the governing body of the municipality, after notice and hearing, that the qualifying improvements will serve the public purposes as set forth in this chapter and not primarily be for the benefit of private persons or uses even though such private benefits and uses may incidentally result, do the following:

I. A municipality which adopts this chapter shall thereafter be authorized to establish one or more districts.

II. Encourage private financing from individuals or institutions for qualifying improvements to eligible properties within the district and enter into agreements with those private lenders to administer the qualifying improvements program on their behalf, including evaluating eligible properties, supervising the improvements, arranging for the closing of the loans, collecting the special assessments, and assisting them with the exercise of their lienholder rights, provided that anticipated expenses for the administration of the program shall be borne by the owners of eligible properties participating in the program.

III. Participate in state or federal programs providing support for municipal qualifying improvements programs such as those authorized by this chapter.

IV. Enter into agreements with owners of eligible property in which the owners consent to make qualifying improvements to their properties and to have the municipality include a special assessment to pay for such improvements on their property tax bills, their bills for water or sewer service or another municipal service, or separate bills, provided that such agreements shall not affect the tax liability or municipal services charges of other participating or nonparticipating property owners in the district.

V. Collect charges from participating owners of eligible properties to cover the cost of administration for the district.

VI. Otherwise administer a program for promoting and financing qualifying improvements within a district in accordance with this chapter, enter into an agreement with a public or private entity to administer such a program on its behalf in accordance with this chapter, and enter into an agreement with one or more other municipalities to share services and otherwise cooperate in the administration of a district or districts in accordance with this chapter.

VII. Adoption of a a district shall include a commercial property assessed clean energy (C-PACE) and residential property assessed clean energy (R-PACE) model implemented according to the most recent U.S. Department of Energy (DOE) released best practice guidelines for PACE financing programs.

5 Agreement With Property Owner. Amend RSA 53-F:4, I(b) to read as follows:

(b) An agreement with an owner of eligible property shall provide that the owner shall contract for qualifying improvements with one or more qualified contractors, purchase materials to be used in making qualified improvements, or both, and that, upon submission of documentation required by the municipality, the municipality shall disburse funds to those contractors and vendors in payment for the qualifying improvements or materials used in making qualified improvements. For energy conservation and efficiency improvements agreement with a property owner shall require that the property owner report post-installation energy use data for program evaluation purposes over a period determined by the municipality. For flood resiliency improvements an agreement with a property owner shall require that the property owner file a report confirming that all agreed upon improvements have been completed.

6 Eligibility of Property Owners. Amend RSA 53-F:5, II to read as follows:

II. Prior to entering into an agreement with an owner of eligible property, the municipality shall determine that:

(a) All property taxes and any other assessments levied with property taxes are current and have been current for 3 years or the owner's period of ownership, whichever is less; that there are no involuntary liens such as mechanic's liens on the property; and that no notices of default or other evidence of property-based debt delinquency have been recorded during the past 3 years or the property owner's period of ownership, whichever is less.

(b) The municipality shall determine whether any mortgages or liens of record exist in the registry of deeds on the property, whether they are current in the obligations, and whether the total debt to equity ratio specified by the private lender will be met. If any such mortgage or lien exists, the municipality shall notify each such mortgagee or lienholder in writing that a private lender is considering making a loan secured by a municipal lien pursuant to the provisions of this chapter and request the consent of each such mortgagee or lienholder to the making of such loan. Each mortgagee or lienholder shall have the right to determine in its sole discretion whether or not it will consent to such loan. If all of the mortgagees or lienholders of record elect to consent, the consents shall be in writing and recorded with the municipal lien in the registry of deeds. The legal effect of having all consents shall be that the municipal lien shall not be extinguished in the event of a foreclosure or sheriff's sale by the mortgagee or lienholder as provided in RSA 53-F:8. If all of the mortgagees or lienholders of record do not consent, but the private lender determines that it will proceed in making such loan, then in the event of a foreclosure or sheriff's sale by a mortgagee or lienholder, the municipal lien shall be extinguished.

(c) The municipality shall adopt additional criteria, appropriate to C-PACE and R-PACE programs.

7 Qualifying Improvements. Amend RSA 53-F:6, I-III to read as follows:

I. Improvements financed pursuant to an agreement under this chapter shall be based upon an audit performed by a person who has been certified as a building analyst by the Building Performance Institute or who has obtained other appropriate certification as determined by the department of energy or another appropriate New Hampshire-based entity. The audit shall identify recommended energy conservation and efficiency and clean energy improvements or flood resiliency improvements; provide the estimated cost savings, useful life, benefit-cost ratio, and simple payback or return on investment for each improvement; and provide the estimated overall difference in annual costs with and without recommended improvements. Financed improvements shall be consistent with the audit recommendations. The cost of the audit may be included in the total amount financed under this chapter.

II. Improvements shall be permanently affixed to an existing building or facility that is part of the eligible property. The owner of the property may not finance projects in buildings or facilities under new construction.

III. Improvements shall be made by a contractor or contractors, which may include a cooperative or not-for-profit organization, determined by the municipality to be qualified to make the energy efficiency or clean energy improvements or flood resiliency improvements in the agreement. Contractors may be designated as qualified by an electric or gas utility program or another appropriate New Hampshire-based entity. Any work requiring a license under any applicable law shall be performed by an individual holding such license. A municipality may elect to permit the financing pursuant to an agreement under this chapter of improvements made by the owner of the property, but shall not permit the value of the owner's labor to be included in the amount financed.

8 Financing Terms. Amend RSA 53-F:7, I to read as follows:

I. Improvements shall be financed pursuant to an agreement under this chapter only on terms such that the total [energy] cost savings realized by the property owner and the property owner's successors during the useful lives of the improvements are expected to exceed the total cost to the property owner and the property owner's successors of the improvements.

9 Priority; Collection and Enforcement. Amend RSA 53-F:8 to read as follows:

53-F:8 Priority; Collection and Enforcement. Collection of special assessments under this chapter shall be made by the tax collector or other official responsible for property tax or municipal service charge collection. A municipality shall commit bills for amounts due on the special assessments, including interest and any charges, to the tax collector with a warrant signed by the appropriate municipal officials requiring the tax collector to collect them. Each year bills for amounts due on the special assessments shall coincide with bills for property taxes or municipal service charges. Each special assessment imposed under a [clean energy efficiency and clean energy] district program pursuant to an assessment contract, including any interest on the assessment and any penalty, shall, upon recording of the assessment contract in the county in which the district area is located, constitute a lien against the property on which the assessment is imposed until the assessment, including any interest or penalty, is paid in full. The lien of the assessment contract shall run with the property until the assessment is paid in full and a satisfaction or release for the same has been recorded by the town, city, or district or its program administrator and shall have the same lien priority and status as other property tax and special assessment liens as provided in RSA 80. The town, city, or district, or any permitted assignee, shall have all rights and remedies in the case of default or delinquency in the payment of an assessment as it does with respect to delinquent property taxes and other delinquent special assessments as set forth in RSA 80, except that all prior recorded mortgages or liens shall retain priority over the lien of the assessment contract unless all such mortgagees or lienholders of record have consented to the lien as provided for in RSA 53-F:5.

10 New Subdivision; Flood Resiliency Improvement Exemption. Amend RSA 72 by inserting after section 87 the following new subdivision:

Flood Resiliency Improvement Exemption

72:88 Definition of Flood Resiliency Improvement. For purposes of an exemption under RSA 72:89, in this subdivision "flood resiliency improvement" means providing flood and water damage mitigation and resiliency improvements, prioritizing repairs, replacement, or improvements that qualify for reductions in flood insurance premiums, including raising a structure above the base flood elevation to reduce flood damage; constructing a flood diversion apparatus, drainage gate, or seawall improvement, including seawall repairs and seawall replacements; purchasing flood damage-resistant building materials; or making electrical, mechanical, plumbing, or other system improvements that reduce flood damage.

72:89 Exemption for Flood Resiliency Improvement. Each city and town may adopt under RSA 79-E an exemption from the assessed value, for property tax purposes, for real property which is includes a flood resiliency improvement as defined in RSA 72:88. The value of such exemption shall not exceed the value of the flood resiliency improvement made and shall attach to the property and not the property owner.

72:90 Flood Resiliency Improvement Credit. In addition to or in place of an exemption for flood resiliency improvement as provided under RSA 72:89, each city and town may, upon adoption pursuant to RSA 72:27-a, offer an annual property tax credit of between $100 and $1,000 for a period of not to exceed 5 years. The accumulated value of such credit over the period it is offered shall not exceed the value of the flood resiliency and the credit shall attach to the property and not the property owner.

11 Application for Exemption or Tax Credit. Amend the introductory paragraph of RSA 72:33, I to read as follows:

I. No person shall be entitled to the exemptions or tax credits provided by RSA 72:28, 28-b, 28-c, 29-a, 30, 31, 32, 35, 36-a, 37, 37-a, 37-b, 38-b, 39-b, 62, 66, [and] 70, and 89 unless the person has filed with the selectmen or assessors, by April 15 preceding the setting of the tax rate, a permanent application therefor, signed under penalty of perjury, on a form approved and provided by the commissioner of revenue administration, showing that the applicant is the true and lawful owner of the property on which the exemption or tax credit is claimed and that the applicant was duly qualified upon April 1 of the year in which the exemption or tax credit is first claimed, or, in the case of financial qualifications, that the applicant is duly qualified at the time of application. The form shall include the following and such other information deemed necessary by the commissioner:

12 Procedure for Adoption Modification, or Rescission. Amend the introductory paragraph of RSA 72:27-a, I to read as follows:

I. Any town or city may adopt the provisions of RSA 72:28, RSA 72:28-b, RSA 72:29-a, RSA 72:35, RSA 72:37, RSA 72:37-b, RSA 72:38-b, RSA 72:39-a, RSA 72:62, RSA 72:66, RSA 72:70, RSA 72:76, RSA 72:82, RSA 72:85, [or] RSA 72:87, RSA 72:80, or RSA 72:90 in the following manner:

13 Appeal from Refusal to Grant Exemption, Deferral, or Tax Credit. Amend RSA 72:34-a to read as follows:

72:34-a Appeal From Refusal to Grant Exemption, Deferral, or Tax Credit. Whenever the selectmen or assessors refuse to grant an applicant an exemption, deferral, or tax credit to which the applicant may be entitled under the provisions of RSA 72:23, 23-d, 23-e, 23-f, 23-g, 23-h, 23-i, 23-j, 23-k, 28, 28-b, 28-c, 29-a, 30, 31, 32, 35, 36-a, 37, 37-a, 37-b, 38-a, 38-b, 39-a, 39-b, 41, 42, 62, 66, [or] 70, 89, or 90 the applicant may appeal in writing, on or before September 1 following the date of notice of tax under RSA 72:1-d, to the board of tax and land appeals or the superior court, which may order an exemption, deferral, or tax credit, or an abatement if a tax has been assessed.

14 New Section; Flood Resilience Investment Funds. Amend RSA 72 by inserting after section 11-a the following new section:

72:11-b Flood Resilience Investment Funds.

I. The legislative body of a municipality may vote to apply and collect a municipal flood resilience fee on each property within the entire town or city or within only a designated flood resiliency district as defined in RSA 53, for deposit into a flood resilience investment fund. The fee may be collected as an additional assessment on the assessed value of all property in the designated flood resilience district of up to $0.50 per $1,000 assessed valuation. Enforcement powers for nonpayment shall be the same as those provided under RSA 31:39-c, RSA 31:39-d, and RSA 47:17-b, relative to enforcement of ordinances.

II. The revenues collected shall be deposited in a flood resilience investment fund established by the municipality under the provisions of RSA 31:95-c or RSA 47:1-b. Such flood resilience investment fund shall be structured in such a way that other sources of public and private funding intended to address risks from flooding in the flood resilience district may be deposited into it and so that funding (through grants or below market loans) can be provided to individuals and businesses within the flood resiliency districts who are intending to invest in qualifying flood resilience improvements.

15 Appropriation; Statewide Economic Impact Study. The sum of $500,000 for the fiscal year ending June 30, 2026 is hereby appropriated to the department of business and economic affairs to fund a statewide analysis of the costs and benefits of flood risk and flood risk mitigation efforts. This study shall include a comprehensive analysis of the fiscal and economic impacts of flood risk mitigation across all flood-prone properties in New Hampshire; an assessment of statewide property elevation strategies, examining varying flood risks, property values, and climate projections like sea-level rise; quantifying benefits such as reduced damages, increased property values, and enhanced tax revenues, while highlighting the costs of inaction, including displacement and economic decline; equipping policymakers with data to guide flood mitigation investments using GIS mapping, climate modeling, and economic forecasting; forecasting the economic ripple effects of mitigation measures--such as job creation and insurance premium savings--and prioritizing high-risk areas for targeted action; and emphasizing the long-term economic benefits of proactive adaptation. This effort aims to position New Hampshire as a leader in climate resilience and sustainable growth. This appropriation shall be offset by any federal or private grants the department is able to secure for this purpose. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.

16 Effective Date. This act shall take effect upon its passage.