Childcare business tax credit program goes to governor

As the midnight deadline approaches for all remaining bills to be acted on, the New Hampshire Senate voted “ought to pass” on a bill endorsed by Gov. Kelly Ayotte that would create a tax credit for businesses that create more childcare slots. 

House Bill 1433 would create the Child Day Care Creation Tax Credit Program, which would allow a business to claim a credit against the business profits or enterprise tax if it creates or expands licensed childcare capacity by at least 12 seats. Businesses would be able to claim up to a 50% credit for childcare-related expenditures if the business itself creates the necessary number of slots, or if it pays a third-party vendor to do so. 

Ayotte endorsed the bill during her State of the State speech in February, calling it a way to “incentivize more businesses to consider helping meet this [childcare] need for their employees.” 

The bill’s language prohibits allocating more than $5 million per fiscal year to the tax credit program. The bill would take effect on July 1, 2026, though it states the tax credit could be applied to new seats created after Jan. 1, 2027. 

The bill passed on the Senate floor by unanimous voice vote. 

In a press release, Ayotte thanked senators for “supporting a commonsense solution to increase access to childcare and support business growth.” 

“New Hampshire is the best place to live, work, and raise a family, and we must work together to address the rising cost of childcare in order to keep it that way,” the governor said. “… Working with our business community, we will continue to expand access to affordable childcare.” 

Ayotte is expected to sign the bill into law once it reaches her desk.