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 295 makes funds allocated for New Hampshire's school building aid program nonlapsing, meaning unused money won't expire or return to the state treasury at year-end. This directly affects school districts and chartered public schools that receive these funds for building projects. The key provision changes the funding status under RSA 198:15-a, ensuring aid can carry over to future years if not spent in the current fiscal period. The bill takes effect July 1, 2025, providing more stable long-term funding for school construction needs.
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.
HB 651 increases the base cost of an adequate education per student from $4,100 to $7,356.01 and raises differential aid amounts for specific student groups: free or reduced-price meal eligible students by $1,733.28 (to $4,126.20), English language learners by $602.88 (to $1,435.20), and students with special education needs by $1,582.56 (to $3,767.40). The bill also expands the definition of an adequate education to include additional resource elements like teacher benefits, technology, and facility maintenance. This change, effective July 1, 2025, will require higher state funding for school districts, charter schools, and education freedom accounts, with an estimated $576 million increase for school districts in fiscal year 2026.
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.
SB 204 requires New Hampshire school districts to provide free breakfast and lunch to all students from households earning at or below 200% of the federal poverty level during school hours. It reimburses schools at 50% of the difference between federal free meal rates and paid/reduced rates, with local districts covering the remaining 50%. The bill appropriates $500,000 to help districts implement online applications for meal eligibility and covers administrative costs for the Department of Education. This directly affects public school districts and low-income students, expanding meal access while establishing a new online application process for qualifying families.
HB 773 modifies how New Hampshire distributes special education aid to school districts by removing the requirement to prorate funds when state appropriations are insufficient. Instead, the bill mandates that school districts receive at least 85% of their entitlement for catastrophic special education costs each fiscal year. This change affects all New Hampshire school districts that receive special education aid under RSA 186-C:18. The bill does not provide new funding but would increase the amount of aid districts receive when costs exceed certain thresholds, though the exact financial impact depends on annual claims.
HB 572 establishes the "Partners in Housing" program, a low-interest loan and grant program under the Housing Champions Fund to help municipalities, counties, and developers build workforce housing. The program prioritizes single-family starter homes, duplexes, small apartment buildings, and "missing middle housing" on municipally-owned land suitable for residential development, with $2 million of the $10 million total funding specifically allocated for this initiative. Municipalities can identify suitable public land for housing development, which would be added to a statewide list prioritized for program funding, and projects must include at least 20% affordable units for 20 years. The program also includes expedited review processes for qualifying projects to speed up development. The bill appropriates $10 million for the Housing Champions Fund, with $500,000 designated for program administration.
HB 624 creates a grant program to provide funding to existing local river management advisory committees in New Hampshire. These committees, established under state law, can apply for grants of up to $10,000 annually to support their work managing local river resources. The bill appropriates $40,000 for fiscal year 2026 and $40,000 for fiscal year 2027 from the General Fund, to be administered by the Department of Environmental Services. The program requires the department to develop application rules but does not include funding for administrative costs.
This bill establishes a new system for funding New Hampshire public schools that calculates each district's "foundation opportunity budget" based on student needs rather than property values. The budget accounts for factors like students eligible for free/reduced lunch (multiplied by 1.49), English language learners (multiplied by 2.20), and students with special needs (multiplied by 4.29). The state will provide "foundation opportunity grants" to cover the difference between the calculated budget and what local governments are required to contribute, with a gradual transition period from the current system over several years. The bill requires school districts to report detailed performance data to help target resources and address achievement gaps for different student groups.
