Capitol Insight: Weekly Legislative Update 1/23/26
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egislative committees were humming with action this week as they continued to dive into the nearly 1400 bills filed. They took up many important pieces of legislation to address the housing shortage and childcare costs, promote a growing economy and improve the state’s aging infrastructure. The Senate advanced enough bills out of their committees to hold a Session next week, while the House postponed its own to allow committees more time to move legislation forward.
R&D Tax Credit 2.0
During the 2025 Legislative Session, an attempt was made to increase the amount available for the Research and Development Tax Credit from $7 million to $10 million and double the amount available to businesses from $50,000 to $100,000. The legislation ultimately died in the Senate after it was determined there were not enough funds available to incorporate it in the state budget. This week, the House and the Ways and Means Committee held a public hearing on an identical initiative, which was widely supported by the life science and business community. The annual cap has not been increased since 2018 with the per-company limit being unchanged since the first law was adopted in 2008. According to the Department of Revenue, the tax credit is oversubscribed each year, leaving companies short of the $50,000 available in law. Supporters of the bill shared that the tax credit is a boost to small and medium sized businesses and promotes economic opportunity in the growing life science and high-tech manufacturing sectors. There was no opposition to the legislation, though the tight state budget may pose a challenge for funding the expansion.
The Afford Your Home Act
In an attempt to address the state’s housing shortage, the Senate Finance Committee took up a bill this week entitled the “Afford Your Home Act,” intended to boost affordable housing opportunities in the state. The legislation expands the Housing Champion program by including new regulations to encourage the building of new childcare centers near jobs and business areas. The legislation would also appropriate $5 million to the Housing Champion designation and grant program fund and an additional $10 million to the Housing Finance Authority to be deposited into the Affordable Housing Fund. While it is widely agreed that the state is in desperate need for more housing options, the $15 million price tag will be tough to swallow when the state is experiencing its tightest budget in over a decade.
Toll Increase in the Cards?
The New Hampshire Senate Transportation Committee took public testimony on a bill to increase toll rates on the state’s turnpike system. As written, the legislation would require all motorists to pay a one dollar increase on the main toll plazas in Hooksett, Hampton and Bedford with smaller increases for all other booths. The prime sponsor offered an amendment that would only increase tolls for those without a New Hampshire EZ-Pass transponder, putting the burden primarily on out-of-state drivers. The Department of Transportation estimates the bill could bring in an additional $53 million in revenue to improve road infrastructure, which led to overwhelming support from paving and transportation companies. The committee suggested they could support the toll increase to address urgent safety issues, but could not get on board with a provision to include a CPI inflation index. The bill may have legs in the Senate but it faces an uncertain path in the House and an uphill battle if it reaches the Governor’s desk.
Week Ahead
The last week of January will feature a good amount of action. While both bodies will hold hearings on nearly 250 bills, House Committees will make a concerted effort in voting out legislation to get a session on the books in the coming weeks. The Senate will pause committee work on Thursday to meet in full.
About Rath, Young and Pignatelli
Capitol Insight is produced with the support of the Chamber’s government relations consultant: Rath, Young and Pignatelli (RYP). RYP merges traditional legal practice areas with legislative and public policy expertise. They have earned a reputation for achieving client success through skillful and creative advocacy in private party negotiations, before courts, regulatory agencies, and legislatures.
Their professionals are leaders in key sectors of the economy where business and government intersect including business and finance, energy, tax, health care, environmental, and insurance.
About The Greater Manchester Chamber
Incorporated in 1911, the Greater Manchester Chamber (GMC) is the largest business organization in New Hampshire, focusing its efforts primarily on Manchester and the surrounding communities of Auburn, Bedford, Candia, Derry, Goffstown, Hooksett, Litchfield, Londonderry, and Merrimack. It is the Chamber’s mission to bring together business and community to enhance economic success and quality of life in our region. For more information visit www.manchester-chamber.org.
