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.
-
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.