Grants made to organizations are in the form of tax credit equity. New Hampshire businesses support awarded projects by purchasing the credits resulting in the nonprofit receiving a donation and the company receiving a 75 percent New Hampshire state tax credit against that contribution. The credit can be applied against the Business Profits Tax, Business Enterprise Tax or Insurance Premium Tax. The donation may also be eligible for treatment as a state and federal charitable contribution.
CDFA’s founding legislation and foundational guidance for the Tax Credit Program can be found in New Hampshire RSA 162-L.
In accordance with the foundational guidance, CDFA’s tax credit funds are allocated to specific projects that are of public benefit, for a public purpose and can reasonably be expected to address one or more of the following objectives:
- Contribute to the development or redevelopment and economic well-being of target areas or target populations;
- Contribute to the economic development of the state;
- Increase or maintain threatened primary employment;
- Provide affordable housing opportunities to low and moderate-income people.