Relative to the definition of a scholarship organization for purposes of the education tax credit.
Summary
HB 483 would narrow the definition of a “scholarship organization” under New Hampshire’s Education Tax Credit law by requiring that a qualifying charitable organization be incorporated in New Hampshire, rather than merely incorporated or qualified to do business in the state. The organization would still need to be a 501(c)(3), comply with state and federal antidiscrimination and privacy laws, be registered with the director of charitable trusts, and be approved by the Department of Revenue Administration to issue scholarships.
In practical terms, the bill would change which entities can receive donations that generate education tax credits. Under the fiscal note, the program currently has one approved scholarship organization for the 2024-2025 year, and that organization is incorporated outside New Hampshire; if the bill becomes law, it would be disqualified for the next program year unless a New Hampshire-incorporated organization is approved. The bill takes effect July 1, 2025, and could affect the availability of scholarship-granting entities and the flow of tax-credit-eligible donations in the Education Tax Credit program.
Impact
The bill amends RSA 77-G:1, XVII, which defines “scholarship organization” for purposes of the Education Tax Credit. By adding an in-state incorporation requirement, it would exclude out-of-state incorporated organizations that are otherwise authorized to operate in New Hampshire. This could reduce the number of eligible scholarship organizations, potentially affecting business tax credits claimed against the Business Profits Tax and Business Enterprise Tax, and could indirectly increase state revenue if fewer credits are used. The fiscal note says the revenue effect is indeterminable because any increase from reduced credit usage could be offset by carryforward credits.
Sentiment
The available materials suggest a neutral-to-supportive policy rationale centered on tightening eligibility and keeping scholarship organizations more closely tied to New Hampshire. There is no recorded committee transcript or vote history in the provided materials, so there is no direct evidence of organized opposition or support from debate. The fiscal note treats the bill as a targeted administrative change with uncertain revenue consequences rather than a broad tax overhaul.
Contention
The main point of contention is likely whether New Hampshire should require scholarship organizations to be incorporated in-state. Supporters may view the change as ensuring local accountability and a stronger in-state nexus for tax-credit beneficiaries, while opponents may argue it unnecessarily excludes otherwise compliant organizations and could reduce scholarship funding options. A second issue is fiscal uncertainty: the bill could increase tax revenue if it eliminates eligible organizations, but the fiscal note notes that carryforward credits could offset that effect, making the net impact unclear.
"Opportunity Scholarship Act"; establishes pilot program in Department of Treasury providing tax credits to taxpayers contributing to scholarships for low-income children.
"Opportunity Scholarship Act"; establishes pilot program in Department of Treasury providing tax credits to taxpayers contributing to scholarships for low-income children.