New Hampshire is a small state that, due to its already-low income tax rates, does not have much to give away. And like many small states, its few subsidy programs are spread out among multiple agencies: the Department of Revenue Administration administers the Research and Development Tax Credit; the Department of Business and Economic Affairs administers the Economic Revitalization Zone Tax Credits; Employment Security administers the WorkInvestNH job training program.
There is no online information about the recipients except for a list of companies participating in the Community Development Investment Program, which gives businesses tax credits in exchange for making investments in community projects. After WorkInvestNH replaced the New Hampshire Job Training Fund, disclosures also became virtually non-existent.
There is no cost reporting for the Research and Development Tax Credit in the state’s Annual Comprehensive Financial Reports, even though it requires an application and award letter and thus should qualify as a tax abatement under Statement No. 77. New Hampshire’s local governments generally report tax abatements in accordance with Statement No. 77, but its local public school districts do not independently report their finances.
In 2014, the New Hampshire legislature created the Joint Committee on Tax Expenditure Review to issue the annual Tax Expenditure and Potential Liability Reports, which replaced the earlier tax expenditure reports produced by the Department of Revenue Administration. However, not only is the analysis superficial, lacking any real depth on program costs and benefits, the grant and loan programs (non-tax expenditures) that New Hampshire has in abundance are not included.