Revision: March 4, 2026, 1 p.m.
Rep. Malloy, Rock. 24
Rep. Tierney, Coos 1
Rep. Ohm, Hills. 10
Rep. Oppel, Graf. 9
Rep. Schamberg, Merr. 6
February 25, 2026
2026-0889h
07/05
Amendment to HB 1420-FN
Amend the title of the bill by replacing it with the following:
AN ACT relative to the tobacco stamp rate, establishing a business profits tax credit for small business advertising expenses, and making an appropriation for improvements in the department of revenue administration's information management system.
Amend the bill by replacing all after the enacting clause with the following:
1 New Section; Business Profits Tax; Local Advertisement Tax Credit. Amend RSA 77-A by inserting after section 5-c the following new section:
77-A:5-d Local Advertisement Tax Credit.
I. There shall be allowed a credit against the tax liability imposed under this chapter for an eligible small business that purchases qualified local news organization advertising from a local news organization.
II.(a) The amount of the credit shall equal 50 percent of qualified local news organization advertising expenditures.
(b) A taxpayer shall be limited to a maximum amount of credit of $2,500 for the taxable year.
III. Any unused credit amounts may be not carried forward and shall not be refundable.
IV.(a) A taxpayer shall apply for the tax credit on forms provided by the commissioner, and applications shall be accompanied by information or records required by the commissioner. The commissioner shall require every taxpayer claiming a tax credit under this section to submit a certification signed by a representative of each qualified local news organization from which the taxpayer purchased advertisements. An entity that knowingly issues a false certification under this paragraph shall be subject to a civil penalty of no less than $5,000 and no more than $10,000 for each false certification issued.
(b) Applications shall be processed in the order received, and shall be approved or denied within 60 days of receipt. If an application is denied, the commissioner shall notify the taxpayer of the reason of reasons for the denial.
V.(a) The aggregate of all local advertising tax credits issued by the commissioner shall not exceed $2,500,000 in any fiscal year.
(b) The department may adopt rules pursuant to RSA 541-A regarding the procedure for applying for the credit.
VI. As used in this section:
(a) "Advertising" means providing consideration for the publication, dissemination, solicitation or circulation of visual, aural, spoken or written communication, directly or indirectly, to:
(1) Induce any person or organization to purchase a good or service or to contribute to a cause; or
(2) Raise awareness of a brand, good, service or issue.
(b) "Eligible small business" means any entity that employs individuals in this state where the average number of full-time employees employed by such entity during such taxable year was less than 50.
(c) "Local news organization" means an entity that:
(1) Engages professionals to create, edit, produce and distribute original content concerning matters of public interest, through reporting activities, including conducting interviews, observing current events or analyzing documents or other information;
(2) Meets membership requirements of the New Hampshire press association or the New Hampshire broadcasters association.
(d) "Qualified local news organization advertising" means amounts paid or incurred in the ordinary course of a trade or business for:
(1) Advertising with an offering that is fully owned and operated by a local news organization; or
(2) Advertising or underwriting on any broadcast radio or television station licensed by the federal communications commission to serve a local community.
2 Tobacco Tax; Tax Imposed. Amend RSA 78:2, I to read as follows:
I. A tax on all cigarettes and little cigars sold at retail in this state is imposed upon the consumer at the rate of [$1.78] $1.81 for each package containing 20 cigarettes or little cigars or at a rate proportional to such rate for packages containing other than 20 cigarettes or little cigars.
3 Appropriation; Department of Revenue Administration. There is hereby appropriated to the department of revenue administration the sum of $40,000 for the fiscal year ending June 30, 2027, for the purpose of modifying its internal management system. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.
4 Applicability. Sections 1 and 2 of this act shall apply to all tax periods ending on or after December 31, 2026.
5 Effective Date. This act shall take effect July 1, 2026.
2026-0889h
AMENDED ANALYSIS
This bill:
I. Establishes a credit against the business profits tax for eligible small businesses that purchase qualified local news organization advertising.
II. Increases the tobacco stamp rate.
III. Appropriates money to the department of revenue administration for internal software improvements.