New Hampshire R&D Tax Credit Explained for Businesses

New Hampshire and the R&D Tax Credit

State Credit Name: Research and Development Tax Credit

Expiration Date: Permanent

Who Can Apply? Corporations and flow-through entities who have acquired qualified manufacturing research and development expenditures made or incurred within New Hampshire.

Credit Carry Forward: Carry forward for 5 years

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Special Notes: The credit amount is the lesser of 10% of the taxpayer’s qualified manufacturing research and development expenditures of $50,000. The expenditures are defined as wages provided that the wages qualify under the federal credit. The credit is first applied against the business profits tax, and any excess credit may be applied against the business enterprise tax. If the amount of the credit received in one year exceeds $2 million, all credits for that year will be reduced accordingly. The credit application must be submitted to NH DRA by June 30 following the tax year in which the R&D occurred. The application should be submitted with the Federal Form 6765.

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Swanson Reed is one of the only companies in the United States to exclusively focus on R&D tax credit preparation. Swanson Reed’s office location at 1045 Elm Street, Manchester, New Hampshire provides R&D tax credit consulting and advisory services to Manchester, Nashua, Concord, Derry and Dover.

If you have any questions or need further assistance, please call or email our local New Hampshire Partner on (603) 333-1370.
Feel free to book a quick teleconference with one of our New Hampshire R&D tax credit specialists at a time that is convenient for you. Click here for more information about R&D tax credit management and implementation.

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New Hampshire R&D Tax Credit Filing Instructions

To claim the Research and Development (R&D) tax credit in New Hampshire, eligible businesses must file Form DP-165, “Research & Development Tax Credit Application,” with the New Hampshire Department of Revenue Administration. This application must be submitted by June 30 following the close of the taxable year in which the R&D occurred. Along with Form DP-165, a copy of the business’s Federal Form 6765, “Credit for Increasing Research Activities,” must also be attached. The New Hampshire R&D tax credit is primarily for qualified manufacturing research and development expenditures incurred within the state, typically defined as wages that qualify under Section 41 of the Internal Revenue Code. The credit amount is generally the lesser of 10% of the excess qualified R&D expenses over a base amount, or $50,000 per fiscal year. Once awarded, the credit is first applied against the business’s Business Profits Tax liability, with any remaining amount able to be applied against the Business Enterprise Tax liability. Unused credits can be carried forward for five subsequent tax years.

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New Hampshire Patent of the Year – 2024/2025

A5G Networks Inc. has been awarded the 2024/2025 Patent of the Year for their innovative approach to autonomous network connectivity. Their invention, detailed in U.S. Patent No. 11909833, titled ‘Multi-cloud connectivity software fabric for autonomous networks’, introduces a novel method for integrating distributed, hybrid, and multi-cloud infrastructures to create a unified communication network.

This patented system utilizes artificial intelligence (AI) and machine learning (ML) to autonomously manage and optimize network functions across various cloud environments. By employing a layered architecture – comprising discovery, control, and data layers – the system intelligently allocates resources, authenticates clients, and directs data traffic based on real-time demands and historical usage patterns. This dynamic adaptability ensures efficient and secure connectivity, even as network conditions and requirements evolve.

A key feature of this innovation is its ability to federate authentication processes across multiple networks, reducing latency and enhancing security. The system’s design supports seamless integration between public operator networks and private enterprise networks, facilitating a ‘network of networks’ that maintains unified compute resources despite underlying heterogeneity.

A5G Networks’ advancement represents a significant leap forward in the evolution of self-driving, AI-powered networks. By enabling intelligent edge services and smart in-line functionalities, this technology lays the groundwork for next-generation connectivity solutions in sectors such as smart cities, connected vehicles, and industrial automation.