On January 15, 2024, the New Hampshire Legislature introduced Senate Bill 55, aimed at providing temporary exemptions from the land use change tax for qualifying housing projects. This legislation, sponsored by a bipartisan group of senators and representatives, seeks to address the growing demand for affordable housing in the state by incentivizing the development of new residential units.

The bill defines "qualifying projects" as those that involve a change in the current use of residential or commercial land and create a minimum of 20 residential units. To benefit from the exemption, projects must receive approval from a municipal planning board, ensuring compliance with existing regulations. Notably, projects approved before the bill's effective date will not be eligible for the tax exemption.

Supporters of SB 55 argue that the measure is crucial for alleviating the housing crisis in New Hampshire, where rising property taxes and limited housing supply have made it increasingly difficult for residents to find affordable options. By exempting qualifying projects from the land use change tax, the bill aims to encourage developers to invest in new housing, potentially leading to increased availability and lower prices.

However, the bill has faced some opposition. Critics express concerns that the temporary nature of the exemptions may not provide sufficient long-term solutions to the housing shortage. Additionally, there are worries about the potential impact on local tax revenues, as municipalities rely on land use change taxes to fund essential services.

The economic implications of SB 55 could be significant. If successful, the bill may stimulate construction activity, create jobs, and enhance the local economy. Conversely, if the exemptions do not lead to a substantial increase in housing supply, the state may continue to grapple with affordability issues.

As the bill moves through the legislative process, its future remains uncertain. Stakeholders from various sectors, including housing advocates, local governments, and developers, will likely continue to weigh in on its potential impacts. The outcome of SB 55 could play a pivotal role in shaping New Hampshire's housing landscape in the coming years.