New Hampshire Cannabis & Hemp Industries 

IRC § 280E Analysis / R&D Tax Credit Eligibility
  • Does Section 280E Apply to state individual income tax?

    • No. NH does not conform to the IRC. New Hampshire's individual income tax is limited to an individual's income from interest and dividends.

  • Does Section 280E apply to state corporate income tax?

    • Yes. New Hampshire conforms to the Internal Revenue Code. The starting point is Federal taxable income. There is no provision that states Section 280E does not apply.

  • Are State R&D Tax Credits Potentially Eligible for "Plant Touching" (e.g. producers, cultivators, manufacturers, retailers) Cannabis Companies?

    • No​, subject to further 280E restrictions. 

  • Are State R&D Tax Credits Potentially Eligible for Industrial Hemp Companies & "Non-Plant Touching" Separate Trade or Businesses (e.g. testing laboratories)?

    • Yes​, subject to further 280E analysis regarding company activities, structure, and applicable state laws.

  • See New Hampshire R&D Credit Summary​

State Law Background

(1) Hemp State Law Authority & Background​ 

  • N.H. Rev. Stat. Ann. § 433-C:1 to 433-C:3 (2016)

    • Allows institutions of higher education to cultivate hemp for research purposes.

    • All research must be coordinated with the New Hampshire Department of Agriculture, Markets and Food.

    • All research projects must conclude within three years of commencement.

    • 2014 N.H. Laws, Chap. 18

    • Established a committee to study the growth and sale of industrial hemp in New Hampshire.

    • The study was required to report their findings by Nov. 1, 2014.

(2) Medical Marijuana State Law Authority & Background

  • Statutory Language (year) - HB 573 (2013)

    • Patient Registry or ID cards - Yes

    • Allows Dispensaries - Yes

    • Specifies Conditions - Yes

    • Recognizes Patients from other states - Yes, with a note from their home state, but they cannot purchase through dispensaries

    • State Allows for Retail Sales/Adult Use - N/A

  • Are sales of medical marijuana subject to sales tax?

    • N/A – no states sales tax in New Hampshire.

  • Is medical marijuana subject to an excise tax?

    • No.

(3) Recreational Marijuana State Law Authority & Background​​​ - N/A​

  • Are sales of recreational marijuana subject to sales tax?

    • N/A.

  • Is recreational marijuana subject to an excise tax?

    • N/A.

(4) Does the State impose a Stamp Tax or Controlled Substances Tax?

  • No.

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