Local Tax Incentives for Real Estate Investors in New Hampshire
New Hampshire offers several tax incentives and programs that can benefit real estate investors at the local level:
1. Community Revitalization Tax Relief (79-E)
- Provides property tax relief for improvements to buildings in designated downtown areas
- Tax assessment remains at pre-improvement level for up to 5 years
- Available in participating municipalities only
2. Economic Revitalization Zone Tax Credits
- Up to $200,000 in tax credits for investing in qualified zones
- Credits against Business Profits Tax and Business Enterprise Tax
- Available for both new construction and rehabilitation projects
3. Historic Property Rehabilitation Tax Credits
- 25% tax credit for qualified rehabilitation expenses
- Available for income-producing historic properties
- Can be combined with federal historic tax credits
4. Local Property Tax Exemptions
- Many municipalities offer property tax exemptions for elderly residents
- Veterans’ tax credits available in most communities
- Solar and wind energy systems may qualify for property tax exemptions
Frequently Asked Questions
Q: Does New Hampshire have a state property tax?
A: No, property taxes are assessed and collected at the local level only.
Q: How often are properties reassessed in New Hampshire?
A: Properties must be reassessed at least every five years per state law.
Q: Can investors appeal their property tax assessments?
A: Yes, through the local assessor’s office within 60 days of tax notice receipt.
Q: Are there tax benefits for affordable housing development?
A: Yes, through programs like the Low Income Housing Tax Credit (LIHTC).
Q: What is the average property tax rate in New Hampshire?
A: The average effective property tax rate is around 2.05%, among the highest in the nation.
Q: Are there tax incentives for commercial property development?
A: Yes, through programs like Tax Increment Financing (TIF) districts and ERZ credits.
Q: How do I apply for local tax incentives?
A: Contact your local municipal office or economic development department.
Bottom Line
While New Hampshire has relatively high property taxes, numerous local tax incentives exist for real estate investors. The key is to research specific municipal programs and combine multiple incentives when possible. Working with local officials and tax professionals can help maximize available benefits.