New Hampshire

Education Tax Credit Program

  • Tax-Credit Scholarship
  • Enacted 2012
  • Launched 2013

The New Hampshire Education Tax Credit Program offers tax credits to businesses and individuals supporting scholarship organizations (SOs), nonprofits that provide private school scholarships or home school support to students in need. Families who meet the income requirements can receive scholarships they may use towards private schooling, tutoring, online learning, classes at colleges or universities and/or homeschooling expenses. Learn more about this tax-credit scholarship program, including average scholarship value, rules and regulations on this page. 

We do not administer this program.

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  • 1

    America’s Only Tax-Credit Scholarship Where Homeschoolers Also Are Eligible

  • 1,228

    Participating Students (2023-24)

  • 40%

    of Families with Children Income-eligible Statewide

  • 2

    Scholarship Organizations (2023-24)

  • 68

    Participating Schools (2023-24)

  • $3,676

    Average Scholarship Value (2023-24)

  • 19%

    Value as a Percentage of Public School Per-student Spending

New Hampshire’s Education Tax Credit Program Participation

Students Participating

Student Funding

Individuals subject to New Hampshire’s interest and dividends tax and businesses may receive 85 percent tax credits for donations to scholarship organizations (SOs). The average value of all non-homeschooling scholarships a scholarship organization awards cannot exceed $2,882 in 2020–21, except for students with special needs, whose scholarships cannot be less than $5,043. That amount is adjusted each year to reflect the changes in the Consumer Price Index. Homeschooling students may receive reimbursements for educational expenses.  

(Last updated December 18, 2023) 

Student Eligibility

Students must be between ages five and 20 and come from households where family income is less than 300 percent of the federal poverty level ($90,000 for a family of four in 2023–24). In the first two years of the program, scholarship organizations were required to award 70 percent of scholarship funds to students who previously attended a public school (“switchers”) or to switchers who already received a scholarship. However, beginning in the third year, the percentage of scholarship funds required to go to switchers reduced by five percent each year. In 2022–23, the program will require at least 30 percent of scholarship recipients to be switchers. Additionally, at least 40 percent of the total scholarships SOs award must be given to students who qualify for the federal free and reduced-price lunch program.  

(Last updated December 18, 2023) 

EdChoice Expert Feedback

New Hampshire’s tax-credit scholarship program helps over 1,000 students access schools that are the right fit for them, but policymakers could do more to expand educational opportunity. 

Eligibility for the scholarships is limited to 300 percent of the federal poverty line. Forty percent of New Hampshire students are eligible for a scholarship and less than one percent of students statewide actually use a scholarship or participate in the Granite State’s town tuitioning program. 

The average scholarship size is about $3,700, which is about 19 percent of the average expenditure per student at New Hampshire’s district schools, though the cap on scholarship values is somewhat higher. Tax credits are worth 85 percent of the value of the contributions to scholarship organizations. Only $5.1 million in tax credits are available annually, which is equivalent to only 0.16 percent of New Hampshire’s total K–12 revenue.  

New Hampshire’s tax-credit scholarship program deserves credit for being the most expansive in the nation in terms of how parents may use scholarship funds to customize their child’s education. It more closely resembles education savings accounts than other tax-credit scholarship programs. The program also avoids unnecessarily burdensome school regulations. 

To expand access to educational choice, New Hampshire policymakers should dramatically increase the available tax credits and expand eligibility to all students (prioritizing scholarships based on need). Increasing the credit value to attract more contributions and restoring the “escalator” that allowed the cap to increase over time to meet demand would be a good start. 

(Last updated December 18, 2023) 

Rules and Regulations

  • Income Limit: 300 percent x Poverty
  • Prior Year Public School Requirement: Conditional
  • Geographic Limit: Statewide
  • Enrollment Cap: None
  • Scholarship Cap: $2,882, on average / $5,043 (special needs minimum)
  • Testing Mandates: None
  • Credit Value: 85 percent
  • Per Donor Credit Cap: $600,000
  • Budget Cap: $5.1 million

SO Requirements:

  • Use at least 90 percent of contributions for scholarships
  • Comply with state and federal antidiscrimination and privacy laws
  • Be registered with the state director of charitable trusts
  • Be approved by the state
  • In awarding scholarships to students who attended public school, who received a scholarship the previous year, or who are entering kindergarten or first grade, award at least 40 percent of scholarships to students who qualified for free and reduced-price lunch in the final year they were in public school
  • Refrain from restricting scholarships for use at a single school and reserving scholarships for specific students
  • Submit to the state:
    • Total number and dollar amount of scholarships awarded and the percentage of students eligible for free and reduced-price lunch for each of the student eligibility categories
    • Total dollar amount of donations spent on administrative expenses
    • Total carryover dollar amount
    • Total dollar amount of contributions used and not used for scholarships
    • Number of scholarships distributed per school and the dollar range of those scholarships
    • Analysis, by ZIP Code, of the place of residence for each student that receives a scholarship
    • Aggregated results of a parental satisfaction survey, designed by the state
  • Number of students who graduated and the number who dropped out of school

(Last updated December 18, 2023) 

Governing Statutes

N.H. Rev. Stat. §§ 77-G:1 through 10

(Last updated December 18, 2023)