HB 649 eliminates the requirement for physical safety inspections and on-board diagnostic tests for all private passenger vehicles in New Hampshire, effective January 1, 2026. The bill also repeals the Motor Vehicle Air Pollution Abatement Fund, which previously received $0.25 from each vehicle inspection fee. This change will reduce state revenue by approximately $1.7 million in fiscal year 2026, with annual decreases of $3.4 million thereafter, and will impact municipal highway fund block grants that receive 12% of vehicle inspection revenue. The bill affects all passenger vehicle owners who would have been required to undergo inspections and alters the funding structure for vehicle safety and environmental programs.
HB 524 repeals the New Hampshire Vaccine Association (NHVA), a state program that collected funds from insurance companies to help cover the cost of childhood vaccines for privately-insured children under 19. After repeal, healthcare providers will directly purchase vaccines for these children and bill insurers directly, ending the state’s annual $24 million revenue stream from the NHVA. The state will also need to fund vaccines for public health emergencies (estimated at $150,000 in the first year), as it will no longer receive NHVA reimbursements for vaccine costs. Insurance companies, which previously saved about 30% on vaccine prices through the NHVA, may face higher costs and potential premium increases for families.
HB 155 reduces New Hampshire's business enterprise tax (BET) rate from 0.55% to 0.50% for tax years ending on or after December 31, 2026. This directly affects businesses that pay the BET, calculated on their taxable enterprise value. The rate change takes effect July 1, 2025, applying permanently to all future tax periods meeting the end-date requirement. The bill does not alter other tax provisions but will decrease state revenue from this tax, with estimated impacts of $4.3 million in fiscal year 2026.
HB 748 establishes a Local Education Freedom Account (LEFA) program that allows parents of eligible students in participating school districts to receive grants from approved scholarship organizations for educational expenses. Eligible students include those attending public or charter schools, kindergarten students, or those receiving home education, who are aged 5-20 and not high school graduates. The program provides grants equal to twice the standard per-pupil education funding (approximately $8,531 for base aid), which can be used for tuition, textbooks, tutoring, transportation, online learning, and educational therapies. School districts must adopt the program through a 3/5 majority vote at a school meeting, and participating students remain counted in their district's enrollment for funding purposes.
SB 652 limits how much excess tax paid by businesses can be applied as a credit toward future taxes. It caps the credit amount at decreasing percentages of the business's tax owed - starting at 500% for 2022-2029 tax periods, then gradually reducing to 150% by 2041. Any overpayment exceeding these caps must be refunded, not applied as a credit. This directly affects businesses that pay more in business profits tax than owed, changing how they handle excess payments.
HB 1288 allows New Hampshire school administrative units to set annual budget caps for their operations. The cap is calculated using the previous year's overhead cost per student (adjusted for inflation via a standard index) multiplied by average daily student enrollment across all member districts. If a school district's proposed budget exceeds this cap, voters must approve an override with a 3/5 majority vote; otherwise, the cap amount automatically becomes the adopted budget. This applies to any school administrative unit that chooses to adopt the cap, directly affecting how school budgets are set and approved within those units.
HB 1542 sets all renewable energy fund compliance payments (the fees electric providers pay if they can't meet renewable energy requirements) to $0, effective January 1, 2027. This eliminates the primary revenue source for New Hampshire's Renewable Energy Fund (REF), which currently funds programs like low-income solar initiatives, non-residential renewable grants, and community solar projects. The fiscal note states this change would reduce annual REF revenue by approximately $6.7 million starting in 2028, causing all REF-funded programs and nine state positions supporting renewable energy compliance to cease without new legislative funding. The bill directly affects electric service providers (by removing compliance penalties), state programs, and low-income communities relying on REF-funded solar projects.
SB 601 changes how New Hampshire funds pension costs for public employees in school districts and municipal employers. Beginning July 1, 2026, the state will pay 7.5% of pension contributions for group I teachers (school districts) and group II members (municipal employees), shifting the remaining 92.5% to local employers. The state’s share will be transferred from the education trust fund to the retirement system quarterly, treated as part of general revenue. This affects school districts and municipalities that employ teachers or municipal staff covered under the state retirement system. The bill modifies existing contribution rules without new funding or positions.
HB 1768 provides free day-use admission and metered parking at New Hampshire state parks for honorably discharged veterans who are state residents. It exempts eligible veterans from these fees upon presenting proof like a veteran license plate, DD-214 form, or other recognized documentation. The bill directly affects New Hampshire veterans meeting these criteria, removing financial barriers to park access. The fiscal note estimates an annual revenue loss of $200,000-$450,000 for the State Park Fund, based on park fee data and veteran residency assumptions.
HB 1385 prohibits municipalities with minimal or no public education costs from using negative property tax rates, which would otherwise require the state to pay the municipality for taxable property. The bill specifically targets towns or cities that have taxable property but allocate little or nothing to public education in their budgets. It requires the Department of Revenue Administration to reject any negative tax rate proposals from these localities. This change takes effect immediately upon the bill's passage and applies statewide to all qualifying municipalities.
