Text to be removed highlighted in red.
1 Short Title. This act may be known and cited as "The Save Small Businesses Act."
2 New Section; Tariff Relief Business Tax Credit. Amend RSA 77-A by inserting after section 5-c the following new section:
77-A:5-d Tariff Relief Business Tax Credit.
I. As used in this section:
(a) "Department" means the department of revenue administration.
(b) "Small business" means:
(1) A manufacturing business with fewer than 50 employees in this state; or
(2) A non-manufacturing business with average annual gross receipts not exceeding $500,000.
(c) "Tariff-related costs" means increased costs of goods, inputs, or supplies directly attributable to federal tariffs imposed under the Harmonized Tariff Schedule of the United States, as evidenced by invoices, tariff classification codes, or supplier certifications acceptable to the department of revenue administration.
II.(a) A qualifying small business shall be allowed a non-refundable credit against the tax due under this chapter equal to 25 percent of documented tariff-related costs incurred during the taxable year.
(b) The credit shall not exceed $7,500 per business organization in any taxable year.
(c) The total amount of credits approved under this section shall not exceed $8,000,000 in any state fiscal year. Credits shall be approved by the department in the order in which fully complete applications are received. If approved claims exceed the cap, the department shall prorate credits among approved applicants.
III. Businesses seeking the credit shall submit an application with supporting documentation no later than March 31 following the close of the taxable year in which the tariff-related costs were incurred.
IV. Any unused portion of an approved credit may be carried forward for up to 3 consecutive taxable years, but shall remain subject to the original annual cap.
V. Credits shall be applied first against business profits tax liability under RSA 77-A and, to the extent unused, against business enterprise tax liability under RSA 77-E. Credits shall not be refundable under this section.
VI. The department may audit any claimed credit and shall have authority to recapture credits improperly claimed or supported by insufficient documentation.
VII. The commissioner, pursuant to RSA 541-A, shall adopt rules relative to:
(a) Acceptable forms of proof for tariff-related costs;
(b) Application procedures and timing;
(c) Allocation of credits under the statewide cap; and
(d) Recapture procedures.
VIII. The commissioner shall submit an annual report to the house ways and means committee and senate ways and means committee detailing the number of credits claimed, the average credit amount, industries impacted, and total fiscal cost.
3 New Section; Tariff Relief Enterprise Tax Credit. Amend RSA 77-E by inserting after section 14 the following new section:
77-E:15 Tariff Relief Enterprise Tax Credit.
I. As used in this section:
(a) "Department" means the department of revenue administration.
(b) "Small business" means:
(1) A manufacturing business with fewer than 50 employees in this state; or
(2) A non-manufacturing business with average annual gross receipts not exceeding $500,000.
(c) "Tariff-related costs" means increased costs of goods, inputs, or supplies directly attributable to federal tariffs imposed under the Harmonized Tariff Schedule of the United States, as evidenced by invoices, tariff classification codes, or supplier certifications acceptable to the department of revenue administration.
II.(a) A qualifying small business shall be allowed a non-refundable credit against the tax due under this chapter equal to 25 percent of documented tariff-related costs incurred during the taxable year.
(b) The credit shall not exceed $7,500 per business organization in any taxable year.
(c) The total amount of credits approved under this section shall not exceed $8,000,000 in any state fiscal year. Credits shall be approved by the department in the order in which fully complete applications are received. If approved claims exceed the cap, the department shall prorate credits among approved applicants.
III. Businesses seeking the credit shall submit an application with supporting documentation no later than March 31 following the close of the taxable year in which the tariff-related costs were incurred.
IV. Any unused portion of an approved credit may be carried forward for up to 3 consecutive taxable years, but shall remain subject to the original annual cap.
V. Credits shall be applied first against business enterprise tax liability under RSA 77-E and, to the extent unused, against business profits tax liability under RSA 77-A. Credits shall not be refundable under this section.
VI. The department may audit any claimed credit and shall have authority to recapture credits improperly claimed or supported by insufficient documentation.
VII. The commissioner, pursuant to RSA 541-A, shall adopt rules relative to:
(a) Acceptable forms of proof for tariff-related costs;
(b) Application procedures and timing;
(c) Allocation of credits under the statewide cap; and
(d) Recapture procedures.
VIII. The commissioner shall submit an annual report to the house ways and means committee and senate ways and means committee detailing the number of credits claimed, the average credit amount, industries impacted, and total fiscal cost.
4 Applicability. This act shall apply to tax periods beginning on or after January 1, 2027.
5 Repeals. The following are repealed:
I. RSA 77-A:5-d, relative to the tariff relief business tax credit.
II. RSA 77-E:15, relative to the tariff relief enterprise tax credit.
6 Effective Date.
I. Section 5 of this act shall take effect June 30, 2032.
II. The remainder of this act shall take effect July 1, 2026.
Text to be added highlighted in green.
1 Short Title. This act may be known and cited as "The Save Small Businesses Act."
2 New Section; Tariff Relief Business Tax Credit. Amend RSA 77-A by inserting after section 5-c the following new section:
77-A:5-d Tariff Relief Business Tax Credit.
I. As used in this section:
(a) "Department" means the department of revenue administration.
(b) "Small business" means:
(1) A manufacturing business with fewer than 50 employees in this state; or
(2) A non-manufacturing business with average annual gross receipts not exceeding $500,000.
(c) "Tariff-related costs" means increased costs of goods, inputs, or supplies directly attributable to federal tariffs imposed under the Harmonized Tariff Schedule of the United States, as evidenced by invoices, tariff classification codes, or supplier certifications acceptable to the department of revenue administration.
II.(a) A qualifying small business shall be allowed a non-refundable credit against the tax due under this chapter equal to 25 percent of documented tariff-related costs incurred during the taxable year.
(b) The credit shall not exceed $7,500 per business organization in any taxable year.
(c) The total amount of credits approved under this section shall not exceed $8,000,000 in any state fiscal year. Credits shall be approved by the department in the order in which fully complete applications are received. If approved claims exceed the cap, the department shall prorate credits among approved applicants.
III. Businesses seeking the credit shall submit an application with supporting documentation no later than March 31 following the close of the taxable year in which the tariff-related costs were incurred.
IV. Any unused portion of an approved credit may be carried forward for up to 3 consecutive taxable years, but shall remain subject to the original annual cap.
V. Credits shall be applied first against business profits tax liability under RSA 77-A and, to the extent unused, against business enterprise tax liability under RSA 77-E. Credits shall not be refundable under this section.
VI. The department may audit any claimed credit and shall have authority to recapture credits improperly claimed or supported by insufficient documentation.
VII. The commissioner, pursuant to RSA 541-A, shall adopt rules relative to:
(a) Acceptable forms of proof for tariff-related costs;
(b) Application procedures and timing;
(c) Allocation of credits under the statewide cap; and
(d) Recapture procedures.
VIII. The commissioner shall submit an annual report to the house ways and means committee and senate ways and means committee detailing the number of credits claimed, the average credit amount, industries impacted, and total fiscal cost.
3 New Section; Tariff Relief Enterprise Tax Credit. Amend RSA 77-E by inserting after section 14 the following new section:
77-E:15 Tariff Relief Enterprise Tax Credit.
I. As used in this section:
(a) "Department" means the department of revenue administration.
(b) "Small business" means:
(1) A manufacturing business with fewer than 50 employees in this state; or
(2) A non-manufacturing business with average annual gross receipts not exceeding $500,000.
(c) "Tariff-related costs" means increased costs of goods, inputs, or supplies directly attributable to federal tariffs imposed under the Harmonized Tariff Schedule of the United States, as evidenced by invoices, tariff classification codes, or supplier certifications acceptable to the department of revenue administration.
II.(a) A qualifying small business shall be allowed a non-refundable credit against the tax due under this chapter equal to 25 percent of documented tariff-related costs incurred during the taxable year.
(b) The credit shall not exceed $7,500 per business organization in any taxable year.
(c) The total amount of credits approved under this section shall not exceed $8,000,000 in any state fiscal year. Credits shall be approved by the department in the order in which fully complete applications are received. If approved claims exceed the cap, the department shall prorate credits among approved applicants.
III. Businesses seeking the credit shall submit an application with supporting documentation no later than March 31 following the close of the taxable year in which the tariff-related costs were incurred.
IV. Any unused portion of an approved credit may be carried forward for up to 3 consecutive taxable years, but shall remain subject to the original annual cap.
V. Credits shall be applied first against business enterprise tax liability under RSA 77-E and, to the extent unused, against business profits tax liability under RSA 77-A. Credits shall not be refundable under this section.
VI. The department may audit any claimed credit and shall have authority to recapture credits improperly claimed or supported by insufficient documentation.
VII. The commissioner, pursuant to RSA 541-A, shall adopt rules relative to:
(a) Acceptable forms of proof for tariff-related costs;
(b) Application procedures and timing;
(c) Allocation of credits under the statewide cap; and
(d) Recapture procedures.
VIII. The commissioner shall submit an annual report to the house ways and means committee and senate ways and means committee detailing the number of credits claimed, the average credit amount, industries impacted, and total fiscal cost.
4 Applicability. This act shall apply to tax periods beginning on or after January 1, 2027.
5 Repeals. The following are repealed:
I. RSA 77-A:5-d, relative to the tariff relief business tax credit.
II. RSA 77-E:15, relative to the tariff relief enterprise tax credit.
6 Effective Date.
I. Section 5 of this act shall take effect June 30, 2032.
II. The remainder of this act shall take effect July 1, 2026.