By Kevin Landrigan
The New Hampshire Union Leader, Manchester
(TNS)
Starting in 2028, employers that create new or expanded childcare options can qualify for a tax credit against either of the state’s two main business taxes.
The bill (HB 1433) authored by State Rep. Katelyn Kuttab, R-Windham, had been a top priority for Gov. Kelly Ayotte, who had urged lawmakers in her State of the State address last February to adopt it.
Ayotte signed the measure last Thursday.
As crafted, the bill would permit employers to get a 50% credit against either the 7.5% Business Profits Tax and/or the 0.55% Business Enterprise Tax for qualifying expenses they spent to create on-site childcare for employees or to support at least 12 additional slots at an existing program.
The qualifying expenses would include not only construction, permitting and development but the first two years of costs to operate the program.
Starting in the 2028 calendar year, firms would apply for the first-come, first-served credit capped at $5 million in any year.
Qualifying employers could choose to carry those tax credits over a four-year period.
Advocates said the state lacks 9,000 slots to meet the current demand for childcare in the state.
Legislative critics said the proposal would not help small businesses that don’t have enough employees to create a center on their own.
“Small businesses are struggling just to stay in business. How do we help them get affordable child care?” Fenton asked.
Natch Greyes, a lobbyist and vice president with the Business and Industry Association, testified that most firms will decide not to create their own center, but team up to help an existing provider grow.
“I do think you will see future legislation to support smaller businesses to make these investments. Right now, we are trying to focus on how to address this serious supply problem we have,” Greyes said.
The New Hampshire Fiscal Policy Institute, a left-of-center public policy think tank, estimated businesses in 2023 lost $56 million in lost productivity or workdays lost due to the child care challenges for their workers.
Officials with the Department of Revenue Administration said the agency would need $40,000 for software changes to create the annual cap for the tax credit.
Photo caption: New Hampshire Gov. Kelly Ayotte (Governor Kelly Ayotte/Facebook)
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© 2026 The New Hampshire Union Leader (Manchester, N.H.). Visit www.unionleader.com. Distributed by Tribune Content Agency LLC.
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