Senate committee hears push to double CDFA tax-credit cap to $10 million

Supporters of Senate Bill 158 told the New Hampshire Senate Ways and Means Committee that increasing the annual cap on the statetax credit for donations to the Community Development Finance Authority would unlock more private capital for housing and community development projects.

Grant Bossie, deputy chief of staff for the New Hampshire Senate, introduced the bill on behalf of Sen. Dan Innes, the bill's prime sponsor. "The Community Development Finance Authority has been providing technical assistance and creative financing options to New Hampshire communities since 1983," Bossie said. "Since 1998, the legislature has incentivized donations to CDFA through a tax credit program." He told the committee the proposal would double the cap from $5,000,000 to $10,000,000 annually.

The bill's supporters — including CDFA Executive Director Katie Easterly Marthe, regional development representatives and preservation advocates — told the committee the existing program has a long record of attracting business donations of varying sizes and leveraging additional investment. "CDFA has that 40 year history in which we've invested over $250,000,000 which have impacted nearly all New Hampshire communities," Easterly Marthe said. She added that, in fiscal year 2024, CDFA invested more than $25,000,000 across 177 projects and engaged more than 152 business donors.

Proponents said the program channels private donations into local projects and cited a number of recent recipients, including the Bethlehem Redevelopment Association, the Grey Rocks Conservation Center on Newfound Lake, the Upper Connecticut Valley Hospital Wellness Center and the Merrimack YMCA Early Education Center. Easterly Marthe told the committee that demand exceeds the current $5 million cap, and that, "for every $5,000,000 that the state invests $11,000,000 in economic activity is created by that investment."

Speakers from regional development corporations, housing advocates and small preservation contractors described how the credit fits into complex funding stacks for rehabilitations and small-scale downtown housing. Justin Slattery of the Bellmap Economic Development Council said the credits helped projects such as the Colonial Theater Block in Laconia gain momentum. Nick Taylor, director of Housing Action New Hampshire, and Jennifer Goodman of the New Hampshire Preservation Alliance described the program as an efficient tool for converting vacant or underused historic buildings into housing.

In executive session the committee moved SB 158 to consent. The motion to place the bill on the consent calendar was made by Senator Lefebvre and seconded by Senator Sullivan; the motion carried by voice vote (tally not specified in the record).

Why it matters: Supporters told the committee the CDFA tax-credit program is a tested tool that leverages private dollars for housing and community projects statewide. Opponents were not recorded during the public hearing; the committee also discussed budget impacts because the change would reduce state revenue by increasing the amount of tax credits allowed in future years.

What remains: The measure now proceeds within the legislative process for fiscal review and further consideration by the legislature.