(The Center Square) — New Hampshire Gov. Kelly Ayotte signed a bill on Thursday creating a new tax credit aimed at spurring private businesses to provide childcare options for employees.
The new program, which begins next January, will give companies up to a 50% credit against either the Business Profits Tax or Business Enterprise Tax for creating at least 12 new childcare slots or investing in an existing facility to create 12 slots.
“Expanding access to childcare is a critical part of our efforts to ensure New Hampshire remains the best place to live, work, and raise a family,” Ayotte said in remarks Thursday at the Manchester YMCA, flanked by lawmakers, childcare providers and parents.
“With this new childcare tax credit program, we’re encouraging our business community to be part of the solution to this pressing economic challenge in our state.” she added.
Like most states, New Hampshire is struggling with the rising cost of childcare forcing parents to take second jobs and stay home from work to care for their kids.
Child care services for two children under age five costs about $30,000 per year or roughly 30% of median household income, according to a 2025 report by the New Hampshire Fiscal Policy Institute. Over a typical childhood, a family could spend nearly $300,000 on care for two children, the report’s authors said.
Many child care centers are financially strained in the wake of the COVID-19 pandemic, and advocates say low compensation and rising child care costs are putting some providers out of business.
Mike Skelton, president and CEO of the Business and Industry Association of New Hampshire, called the new program “an important step toward addressing one of New Hampshire’s most pressing workforce challenges.”
“For too many families, finding affordable, accessible child care has become a barrier to participating fully in our economy, while employers across the state struggle to attract and retain talent,” hje said. “While there is more work to be done, these reforms demonstrate what is possible when policymakers and the business community work together to strengthen New Hampshire’s workforce and economic competitiveness.”
