New Hampshire Education Tax Credit: 85% Back on Business Taxes, Plus the Federal Credit

The New Hampshire Education Tax Credit in brief

New Hampshire's Education Tax Credit, created in 2012 under RSA 77-G, rewards business donors who fund scholarships. You give to an approved scholarship organization, and you take a credit of 85% of the gift against:

• the Business Profits Tax (BPT),
• the Business Enterprise Tax (BET), or
• both, split however you choose.

Key rules:

• Statewide cap: $5,100,000 in credits per program year, as RSA 77-G:4 is published. The program year runs July 1 to June 30.
• Per-donor cap: no business or individual may receive more than 10% of the aggregate, which is $510,000 in credits.
• Carryforward: unused credit carries forward up to five years, but no more than $1,000,000 can be used in any one tax year.
• No earmarking: you can't direct a gift to a particular student or private school.

Who can claim it

The statute lets "a business organization, business enterprise, or individual" claim the credit. Because it applies only against the BPT and BET, you need liability under one of those taxes to benefit. In practice, donors are mostly corporations, LLCs, partnerships and sole proprietors with New Hampshire business tax bills.

Amounts, caps and what scholarships fund

InDepthNH reported in January 2026 that donors gave $2.3 million in the prior fiscal year, funding scholarships for 777 students. That's well under the cap, so the credit hasn't been a race the way Montana's or Georgia's is.

Scholarships can pay for:

• private school tuition, or tuition at a public school outside the student's district,
• accredited tutoring,
• distance education and college costs,
• home education expenses.

New students must have household income at or below 300% of the federal poverty guidelines; returning students can renew. The law caps a scholarship organization's average award at $2,500, adjusted yearly for inflation, with a higher minimum for students in special education. Scholarship organizations may spend no more than 10% of eligible contributions on administration.

Preapproval and deadlines

You apply before you claim:

1. Apply to the Department of Revenue Administration (DRA) by May 31 of the program year. Applications are processed first come, first served, and random order breaks same-day ties. Approval comes within 30 days. Applications received after May 31 count toward the next program year. DRA may approve part of a request if the cap is close.
2. Give, and get the scholarship receipt. DRA won't grant the credit without it.
3. Claim the credit on your BPT and/or BET return.

Stacking with the federal $1,700 credit

Governor Ayotte opted New Hampshire in to the federal scholarship tax credit in January 2026, and New Hampshire is on the IRS list of states with 2027 advance elections. From January 1, 2027, individuals who give cash in their own name to an SGO on New Hampshire's federal list can claim up to $1,700 each, or $3,400 for a married couple who each give. The federal scholarship tax credit guide has the details.

Under Treasury's proposed rules, the two credits mostly don't collide:

• Business gifts earn the New Hampshire credit but are never qualified federal contributions.
• Personal gifts earn the federal credit. Most people have no BPT or BET liability, so there's no state credit to subtract.

Example: a business owner and spouse. Their LLC gives $20,000 to a scholarship organization and takes a $17,000 credit against BPT and BET. Separately, each spouse gives $1,700 personally to a listed SGO, designates it as qualified, and claims $3,400 on their joint return. That's $20,400 in credits on $23,400 given.

If you'd claim the NH credit on your own qualified gift, for example as a sole proprietor, the proposed rules subtract it before the $1,700 cap. You can use separate gifts. Or, under Treasury's ordering rule, give a larger gift and designate only part of it as qualified. The 85% state credit is then counted first against the undesignated part. On an $11,334 gift with $1,700 designated, the $9,634 state credit comes out of the other $9,634, leaving the full $1,700 for the federal credit. Get advice before relying on this.

New Hampshire must file its federal SGO list by February 15, 2027. See the states opted-in tracker.

How to give, step by step

1. Choose a scholarship organization. The Children's Scholarship Fund New Hampshire administers the state's business education tax credit scholarships and Education Freedom Accounts. InDepthNH reported in July 2026 that it has been approved as a federal SGO.
2. Apply to DRA by May 31 with the amount you plan to give.
3. Give after approval and keep the scholarship receipt.
4. Claim 85% on your BPT and/or BET return, and track any carryforward.
5. From 2027, make personal federal gifts. Give cash, designate it as qualified, and keep the unique donor number the SGO sends by January 31. See how to claim the federal scholarship tax credit.

Businesses giving in several states can compare programs in business tax credit scholarships. Families can read New Hampshire scholarships for families.

Choosing a scholarship organization

Ask how the organization splits funds between private school tuition, tutoring and home education. Ask what its average award is and how it keeps administration under 10%. And ask whether it will keep state-credit gifts and federal qualified gifts in separate accounts, as federal law requires for qualified contributions.

Our checklist for choosing a scholarship fund has more questions. When you're ready, pledge on Edulist. You give directly to the organization; Edulist never takes donations.

This page is general information as of October 2026, not tax advice. The federal rules are proposed, not final. Ask your tax professional.