How SB 637 changes current law

Compared against the N.H. Revised Statutes Annotated as published AI-generated reading aid — verify against the official bill.

The bill introduces a tax credit for grocery stores purchasing products from registered farms, establishing a new section in tax law.

• RSA 77-A

  77-A:5-d Registered Farm Product Tax Credit. I. A business organization subject to taxation under this chapter that operates a grocery store within the state may claim a credit against the tax due under RSA 77-A for each taxable period in which the business organization: (a) Purchases at least 10 percent of its total annual product inventory, by cost, from registered farms; and (b) Reduces the sale price of such items by 10 percent.

  Establishes a new tax credit for grocery stores meeting certain purchase requirements from registered farms.

• RSA 77-A

  II. For purposes of this section: (a) “Grocery store” means any establishment or section of an establishment where food and food products are offered to the consumer and intended for off-premise consumption. The term includes delicatessens that offer prepared food in bulk quantities only. The term does not include establishments which handle only prepackaged, non-potentially hazardous foods; roadside markets that offer only fresh fruits and fresh vegetables for sale; food service establishments; or food beverage vending machines. (b) “Registered farm” means a farm located within the state of New Hampshire that is registered with the department of business and economic affairs under RSA 12-O:78.

  Defines 'grocery store' and 'registered farm' for the purpose of the new tax credit.

• RSA 77-A

  III. The amount of the credit shall be equal to 10 percent of the total amount paid by the grocery store to local farms for qualifying products during the taxable period.

  Establishes the amount of the tax credit based on purchases from local farms.

• RSA 77-A

  IV. The credit allowed under this section shall not exceed the business organization’s tax liability under this chapter for the taxable period. Any unused portion of the credit may be carried forward for up to 5 consecutive taxable periods.

  Limits the tax credit to the tax liability and allows unused credits to be carried forward.

• RSA 77-A

  V. A business organization claiming the credit shall submit, with its return under RSA 77-A:6, documentation as prescribed by the commissioner, including but not limited to: (a) A list of registered farms from which produce was purchased; (b) The total amount of qualifying purchases; (c) Certification from each farm that it meets the definition of “registered farm” under this section; and (d) Evidence that the products were sold at a 10 percent discount.

  Details the documentation required for grocery stores to claim the new tax credit.

• RSA 77-A

  VI. The commissioner shall adopt rules, pursuant to RSA 541-A, relative to the administration of this section, including procedures for claiming the credit and verifying eligibility.

  Gives the commissioner authority to create rules for the administration of the new tax credit.