Overview
New Hampshire does not offer data center-specific tax breaks or dedicated programs. Instead, large facilities access the same general business incentives available to any capital-intensive employer: tax credits for economic revitalization zones, research and development, and job creation in Coos County, plus municipal tax increment financing. The state also has no general sales tax, which benefits equipment-heavy projects. Key compliance hurdles include environmental permits for land disturbance and air emissions, energy facility siting if a project adds on-site generation, and local zoning approval.
Incentives
No General Sales Tax
New Hampshire has no general sales tax on goods purchased in the state.[1] This functions as a baseline cost advantage for equipment-heavy projects, but it is not data center-specific.
Economic Revitalization Zone (ERZ) Tax Credit
The ERZ credit is a business tax credit against the Business Profits Tax and Business Enterprise Tax for projects that create at least one net new full-time job and make capital improvements in certified zones.[2]
- The credit amount depends on capital investment, jobs, and wage levels
- Unused credits can be carried forward for up to five years
- The state allocates $825,000 per year statewide for ERZ credits, which caps total availability
Research and Development (R&D) Tax Credit
The R&D credit is based on 10% of qualified R&D expenses above a base amount and can be used against business taxes.[3]
- The program’s statewide cap is $7 million per fiscal year
- Each taxpayer’s share is capped at $50,000 per year
- Credits can be carried forward for up to five years
Coos County Job Creation Tax Credit
The Coos County credit applies to new, full-time, year-round jobs in Coos County that meet wage thresholds.[4]
- Credits are awarded per qualified employee ($750 or $1,000)
- Apply against Business Enterprise Tax first, then Business Profits Tax
- Can be carried forward for up to five years
- Available for taxable periods ending on or before December 31, 2027
Municipal Tax Increment Financing (TIF)
TIF is a method to finance public improvements using the incremental taxes created by new construction or renovation within a defined district.[5] RSA 162-K authorizes municipalities to establish economic development and revitalization districts and adopt TIF plans, making local property tax relief or infrastructure support the primary local lever for large projects.[6]
Requirements and Conditions
Alteration of Terrain (AoT) Permitting
The Department of Environmental Services requires AoT permits for projects disturbing more than 100,000 square feet of contiguous terrain (50,000 square feet in protected shoreland areas).[7] Disturbances greater than 2,500 square feet on slopes over 25% may also require AoT permits. Data center sites with large footprints or major grading work will typically trigger this permit path.
Air Permitting for Backup Generators
Fuel-burning devices and emergency generator engines can require air permits.[8] New construction permits (including temporary permits) are required prior to installation or modification of qualifying sources. Data centers with large emergency generation fleets should expect air permitting and operating conditions.
Energy Facility Siting
RSA 162-H establishes a state review process for the siting, construction, and operation of “energy facilities,” with attention to environmental, economic, and public health impacts.[9] If a data center includes a generating plant or requires new high-voltage transmission, the project can trigger Site Evaluation Committee review and approval.
Local Zoning and Site Plan Review
New Hampshire’s land-use system is local-first. Municipal zoning, planning boards, and building permits remain decisive for siting large industrial facilities. This creates municipality-by-municipality variability in allowable uses, setbacks, and approval timelines.
Sources
[1] New Hampshire Department of Revenue Administration, “Does New Hampshire have a sales tax?” No date, https://www.revenue.nh.gov/faq/does-new-hampshire-have-sales-tax (accessed 2026-01-08).
[2] New Hampshire Department of Revenue Administration, “Economic Revitalization Zone Credit,” No date, https://www.revenue.nh.gov/taxes-glance/tax-credit-programs/economic-revitalization-zone-credit (accessed 2026-01-08).
[3] New Hampshire Department of Revenue Administration, “Research and Development Tax Credit Program,” No date, https://www.revenue.nh.gov/taxes-glance/tax-credit-programs/research-and-development-tax-credit-program (accessed 2026-01-08).
[4] New Hampshire Department of Revenue Administration, “Coos County Job Tax Credit,” No date, https://www.revenue.nh.gov/faq/coos-credit.htm (accessed 2026-01-08).
[5] New Hampshire Department of Business and Economic Affairs, Office of Planning & Development, “Tax Increment Financing (TIF),” No date, https://www.nheconomy.com/office-of-planning-and-development/resources/tax-increment-financing (accessed 2026-01-08).
[6] New Hampshire General Court, “RSA 162-K: Municipal Economic Development and Revitalization Districts,” Updated 2025-09-11, https://www.gencourt.state.nh.us/rsa/html/NHTOC/NHTOC-XII-162-K.htm (accessed 2026-01-08).
[7] New Hampshire Department of Environmental Services, “Land Development,” No date, https://www.des.nh.gov/land/land-development (accessed 2026-01-08).
[8] New Hampshire Department of Environmental Services, “Air Permitting for Stationary Sources (Permit Guidance),” No date, https://www.des.nh.gov/air/industrial-sources/permit-guidance (accessed 2026-01-08).
[9] New Hampshire General Court, “Chapter 162-H Energy Facility Evaluation, Siting, Construction and Operation,” Updated 2024-07-19, https://www.gencourt.state.nh.us/rsa/html/XII/162-H/162-H-mrg.htm (accessed 2026-01-08).