New Hampshire Research and Development Tax Credit Summary

The New Hampshire R&D Tax Credit offers taxpayers a permanent research and development credit against the business profits and business enterprise taxes. The credit is for qualified manufacturing research and development expenditures made or incurred within New Hampshire during the fiscal year. The expenditures are defined as wages provided that the wages qualify for the federal credit under IRC §41. Below are some R&D Tax Credit details for the state of New Hampshire:

  • The credit is first applied against the business profits tax, and any remaining amount may be applied against the business enterprise tax.
  • The credit amount is the lesser of 10% of the business organization's qualified manufacturing research and development expenditures or $50,000.
  • In the event that the aggregate amount of credit applied for, in any given fiscal year, exceeds $2 million, all credits for that year will be reduced proportionately.
  • The credit application (Form DP165) must be submitted to NH DRA and postmarked no later than June 30 following the tax year during which the research and development occurred. The application should be submitted along with Federal Form 6765.
  • The unused portion of the credit may be carried forward for 5 years.

New Hampshire R&D Tax Credit Case Study

A Concord company designs and manufactures high-tech components for the electronics industry. The company claims R&D credits each year for the development activities of its engineers. This project involved a multi-year study covering the tax years 2012 – 2014.  The Company qualified for the federal R&D Tax Credits of $271,832 and an additional $50,000 in New Hampshire state R&D Tax Credits.

   
FEDERAL
 
NEW HAMPSHIRE
Year
Total QREs
Credit
Total QREs
Credit
2014
$1,200,000
$127,166
$1,000,000
$50,000
2013
850,000
92,166
NA
NA
2012
500,000
52,500
NA
NA
           
Total $1,200,000 $271,832 $1,000,000 $50,000