Capitol Insight: Weekly Legislative Update 4/10/26
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fter using the last week for committee work, the House and Senate each convened on Thursday for brief sessions, each addressing only four bills on their respective regular calendars. The House extended their day to consider several of their bills amended by the Senate and to vote on two gubernatorial vetoes. Despite the abbreviated session, legislative activity remained robust, with committees holding public hearings and working throughout the week to advance legislation.
House Session
The New Hampshire House of Representatives voted this week to sustain Governor Kelly Ayotte’s vetoes of two bills, largely along party lines. One measure, which proposed the establishment of a paint stewardship program, was characterized by the Governor as effectively imposing a “sales tax on paint,” asserting that the associated costs would ultimately be borne by consumers. Proponents argued that the program offered a practical mechanism to fund paint recycling and disposal, while opponents contended that it constituted a de facto tax, inconsistent with the state’s longstanding opposition to a general sales tax. The second veto upheld by the House concerned legislation that would have authorized optometrists to perform certain laser and surgical eye procedures. While acknowledging the important role optometrists play in routine eye care, the Governor vetoed the bill on the grounds that surgical procedures should remain under the purview of physicians, noting that ophthalmologists receive more extensive surgical training. To date, Governor Ayotte has vetoed 15 bills during her tenure and has successfully defended each veto against override attempts.
Senate Session
On Thursday, the New Hampshire Senate approved legislation to expand the allowable expense deduction permitted under Section 179 of the Internal Revenue Code. The change permits businesses to immediately deduct a greater portion of capital expenditures, rather than depreciating those costs over multiple years. The Senate amended the bill to mitigate the impact to state revenues by introducing a phased approach, with an initial $1 million deduction followed by an increase of $500,000 every two years until it reaches the federal maximum of $2.5 million. The proposal is especially important for small and mid-sized Granite State businesses that rely on substantial equipment investments. By increasing the deduction, the legislation is expected to help businesses improve cash flow, reduce taxable income on capital expenditures and encourage business expansion in New Hampshire. At a time when employers continue to face higher borrowing costs and economic uncertainty, the bill will provide businesses with the opportunity to grow without waiting years to realize full tax benefits.
Right State Revenue Update
March revenue figures released this week indicate an improvement in the state’s fiscal position following a slower start to the year. Total revenue collected for the month reached $411.5 million, exceeding projections by $38.8 million and bringing year-todate revenues $129.3 million above budget. While a large portion of collections can be attributed to a recent tax amnesty program, revenues would still exceed expectations by $30.5 million regardless. Business taxes, which typically account for the largest share of revenues each month, totaled $138.4 million in March at $6.9 million above projection, though still trailing the annual plan by $32.5 million. Additionally, insurance tax revenues outperformed expectations by $28.8 million, helping to offset weaker collections in other areas. Overall, the March report suggests fiscal improvement; however, legislators, as well as the Governor, are expected to closely monitor revenue trends in the remaining three months of the fiscal year.
Week Ahead
The Senate will hold another short session next week, while the House will not convene, allowing committees additional time to act on pending legislation. House committees face a Thursday deadline to report on bills that will be referred to a second committee for additional vetting. Senate committees will continue holding public hearings, with some, including the Senate Health and Human Services Committee, expected to complete their hearing schedules. Meanwhile, the Governor and Executive Council will meet on Wednesday to address a substantial agenda of 122 items.
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.
