CONCORD – Gov. Kelly Ayotte signed HB 155 into law this week, legislation that Democrats say paves the way for another corporate tax cut and downshifts $26 million a year to local property taxpayers. She signed 37 other bills and vetoed five more.
HB 155 “directs a 0.05% Business Enterprise Tax (BET) cut anytime New Hampshire business tax revenue exceeds projections by $100 million, until the BET is reduced from 0.55% to 0.25%,” according to House Democratic Leader Alexis Simpson, D-Exeter.
The legislation precludes any consideration of reducing property taxes or any of the 90 fees that were increased in the 2025 budget if a revenue surplus is driven by business tax receipts at the state level.
“Republicans looked at the affordability crisis crushing hardworking families and decided the biggest emergency was that giant out-of-state corporations weren’t getting enough tax breaks,” Simpson said. “Republicans actually think campaigning on another corporate tax cut for Jeff Bezos and Elon Musk is a winning message while families can’t afford the basics and our property taxes keep rising. Good luck explaining that one at the next town hall.”
Unpopular Veto
Ayotte’s veto of HB 2026, drew criticism from Democrats and Republicans. HB 2026 is “relative to the state 10-year transportation improvement plan; relative to toll rate adjustments and periodic toll reviews for the New Hampshire turnpike system to support the 2027-2036 ten-year transportation plan; and relative to reconstruction of the Gregg Mill Road Bridge in the town of New Boston.”
Required by state law and updated every two years, the Ten-Year Transportation Plan identifies transportation projects across New Hampshire, allows the state to compete for and receive federal transportation funding, and outlines how state transportation dollars will be invested.
Following the veto, Rep. John Cloutier, D-Claremont, Ranking Member of the House Public Works and Highways Committee, said: “Governor Ayotte’s veto of the Ten-Year Transportation Plan puts politics ahead of public safety and New Hampshire’s economic future. This bipartisan plan provides the long-term certainty needed to repair aging roads and bridges, modernize critical infrastructure, and keep transportation projects moving in communities across the state.
“Rejecting this plan creates unnecessary uncertainty, delays projects that communities are counting on, and jeopardizes New Hampshire’s ability to maximize available federal transportation funding. Safe roads, reliable bridges, and strong infrastructure should never become political bargaining chips. Granite Staters deserve leadership that plans ahead, invests responsibly, and keeps our transportation system moving forward.”
Deputy House Speaker Steven Smith, R-Charlestown, also criticized vetoing HB 2026, the 10-Year Plan.
“For decades, the 10-Year Plan has served as an exercise in bipartisanship, delivering billions of dollars into Granite State roads, bridges and infrastructure,” said Smith. “The Governor’s veto of HB 2026 is short-sighted and puts critical transportation projects across New Hampshire at risk. This 10-year plan invests in repairing broken roads, bridges, and other vital infrastructure that communities heavily rely on every single day.”
“These improvements would have been funded through dedicated turnpike revenues, not by increasing taxes on the people of New Hampshire. Rejecting the entire plan delays needed investments and leaves our state’s aging infrastructure waiting even longer,” Smith said.
In her veto message of HB 2026, Ayotte said, “As I stated when I vetoed Senate Bill 627, I do not support raising the tolls. I will continue to focus on making New Hampshire more affordable for all and a destination for tourists in the region. For these reasons, I have vetoed House Bill 2026.”
The Associated General Contractors of New Hampshire (AGC NH) expressed disappointment following Ayotte’s veto of New Hampshire’s Ten-Year Transportation Improvement Plan, warning that the decision creates uncertainty for transportation projects, local communities, and the construction industry.
The Ten-Year Transportation Improvement Plan is the state’s roadmap for transportation investment, identifying priorities for highways, bridges, congestion relief, and other critical infrastructure projects. It provides the predictability contractors, engineers, municipalities, and businesses need to plan for the future.
“Contractors make decisions on hiring, workforce training, equipment purchases, bonding capacity, and business growth based on the expectation that the state will follow through on its infrastructure commitments,” said Alex Koutroubas of AGC NH. “The Ten-Year Plan provides the stability necessary to plan for the future. A veto introduces uncertainty into a process that depends on long-term consistency.”
Sale of Sununu Youth Services Center Proceeds
Ayotte vetoed Senate Bill 481, which would have sent money from the sale of the SYSC to the general fund, instead of to the victims settlement fund to pay claims from the victims who were physically and sexually abused as children while incarcerated as children at YDC, now known as the Sununu Youth Services Center in Manchester.
“The budget I signed last year stated that ‘All proceeds and revenue from the sale of the SYSC shall be deposited in the youth development center claims and administration settlement fund, established in RSA21-M:11-a.’ Given the history of the facility, I believe it is appropriate to dedicate revenues from the sale of the SYSC to the settlement fund. For this reason, I have vetoed Senate Bill 481,” Ayotte said.
The Governor also vetoed the following bills:
- HB 396 — Exempting meat and meat food products slaughtered and prepared in state for sale in state from certain inspections.
- HB 1102 — Increasing the research and development tax credit cap and relative to state park fees for state residents.
- HB 1184 — Relative to the issuance of no trespass orders on municipal or school district property.
The Governor’s veto statement for House Bill 396 is below:
“Agriculture is an important part of our state’s economy and heritage, and I appreciate the bill’s intent to provide additional meat processing access for small farmers and producers. Unfortunately, this proposal violates the federal Meat Inspection Act as confirmed in a letter written to the Commissioner of Agriculture Shawn Jasper by Acting Administrator of the Office of Investigation, Enforcement, and Audit Food Safety and Inspection Service of the USDA. New Hampshire has not established its own Meat and Poultry Inspection Program and therefore, the state relies on federal inspection of these products.
“The USDA stated that they routinely provide inspection to low volume, seasonal or infrequent producers and are willing to work with local producers to meet their needs. They also noted that they “were not aware of any outstanding or unmet requests for inspection” in New Hampshire. They offered time and resources to work with the state to reduce the burden on small producers. I am sensitive to the needs of our small producers and will instruct the Commissioner of Agriculture to convene a group of our small producers to discuss a path forward that does not violate federal law putting these local producers at risk for federal action and creating potential food safety issues.
“For these reasons, I have vetoed House Bill 396.”
The Governor’s veto statement for House Bill 1102 is below:
“I support expansion of the research and development tax credit to encourage businesses to continue to invest in innovation and the creation of new products, however, inexplicably, the legislature tacked onto it unrelated changes to our State Park fee structure that will have a negative impact on our self-funded parks and tourism. The Commissioner of the Department of Natural and Cultural Resources testified before the legislature about the detrimental impact of the park fee change proposal on our parks and the bill was killed as a standalone. Adding it back at the last minute to a positive tax credit expansion does not suddenly make it good policy, and thus, I have vetoed House Bill 1102. I will work to make the expansion of the research and development tax credit law by including it in my next budget proposal.”
The Governor’s veto statement for House Bill 1184 is below:
“This bill seeks to establish a state mandated process for no trespass orders issued by municipalities and school districts causing them to expire every 90 days without further action. I have heard from counties, municipalities, school boards, libraries and police chiefs that this is unworkable. New Hampshire’s local officials are best equipped to make these decisions in a manner that reflects the unique needs of their communities in a way that protects public safety and respects individual rights.
“For these reasons, I have vetoed House Bill 1184.”
In her email, Ayotte listed all the bills she signed and vetoed during the week:
- HB 155 — Relative to business enterprise tax returns and appropriating funds to the department of health and human services for licensed nursing facilities.
- HB 158 — Requiring the secretary of state to review absentee ballot data biennially, forward certain requests to the election law unit for review, and make a report to the general court.
- HB 241 — Relative to health insurance coverage of pain management services for the management of chronic pain.
- HB 281 — Requiring electronic voter checklists to be supplied in a sortable format.
- HB 317 — Allowing a supervisor of the checklist to verify a person’s identity, with identification, if they personally know that person.
- HB 340 — Relative to electioneering by public employees.
- HB 639 — Relative to the use of and disputes over blockchain and digital currencies.
- HB 661 — Relative to the department of health and human services management of social security payments, supplemental security income payments, and veterans benefits for children in foster care.
- HB 707 — Establishing a solid waste site evaluation committee.
- HB 1062 — Authorizing the secretary of state to conduct random audits of the citizenship qualification of registered voters.
- HB 1088 — Transferring funding for the water well board from the general fund to a special nonlapsing fund.
- HB 1099 — Establishing a committee to study the cost and liability of providing educational services to students placed in residential facilities.
- HB 1141 — Relative to permitting and fee authority for mining and prospecting.
- HB 1187 — Relative to the time in which candidates for state representative may file their candidacy for a special election.
- HB 1207 — Relative to certain laws applicable to state chartered banks, credit unions, trust companies, and other consumer credit entities subject to the authority of the banking department.
- HB 1234 — Identifying certain school district offices as incompatible for purposes of school district elections.
- HB 1260 — Relative to marriage registration forms and delayed certificates of marriage.
- HB 1268 — Modifying the structure and administration of home education programs and relative to pharmacy benefits managers, managed care laws, notice of drug pricing options, and pharmacy benefit manager business practices.
- HB 1275 — Relative to the effects of per- and polyfluoroalkyl substances on agriculture, exempting certain per- and polyfluoroalkyl products from use restrictions, and relative to the definition of “drinking water standard”.
- HB 1306 — Relative to the counting of absentee ballots.
- HB 1312 — Relative to the authority of various boards.
- HB 1348 — Relative to possession of human remains for law enforcement training purposes.
- HB 1362 — Relative to motor vehicle equipment specifications.
- HB 1374 — Modifying the procedures for withdrawal from a cooperative school district and the discontinuance of elementary and high schools and requiring the review of school district operating documents by school boards.
- HB 1415 — Establishing a special veterans license plate and creating a fund and administrative programs from the proceeds of the sale of such plates and establishing the New Hampshire first for veterans program and authority.
- HB 1469 — Relative to the licensing requirements for massage therapy establishments.
- HB 1523 — Relative to disclosure requirements for homeowners’ associations.
- HB 1573 — Permitting excused absences for student participation in certain activities and mandating the state board of education to grant school reassignment requests for students demonstrating a manifest educational hardship.
- HB 1598 — Relative to notice and proceedings for tenants and landlords engaged in eviction processes.
- HB 1718 — Relative to authorizing energy storage in connection with net metering.
- HB 1723 — Requiring utilities and electric grid operators to assess and report the vulnerability of high-voltage transformers to geomagnetic and electromagnetic disturbances, and to recommend mitigation measures to protect the state electric infrastructure.
- HB 1735 — Relative to the practice of pharmacy, the dispensing of certain medications by pharmacists, and permitting treatment of certain severe illness under the right to try act.
- HB 1807 — Relative to mandatory reports to voters.
- HB 1816 — Relative to the intervention of the department of education into a school or school district during a financial emergency and requiring the state school board to establish rules governing the vetting of school district business administrator candidates.
- SB 534 — Relative to compliance with certain political expenditures and contribution statutes.
- SB 538 — Extending net metering eligibility terms for municipal energy projects.
- SB 564 — Prohibiting certain municipal development restrictions.
- SB 599 — Relative to the renewable energy fund.