The New Hampshire legislature has worked for years to make New Hampshire, according to the preamble of a 2011 bill, “the best and most attractive legal environment in the nation for trusts and fiduciary services, an environment that will continue to attract to our state good-paying jobs.” The Granite State is now what the Wall Street Journal (reported by the New Hampshire Business Review) called “a kind of mini-Switzerland for wealthy Northeast families.”
The dozens of trust companies flocking to New Hampshire generate substantial interest and dividend income subject to New Hampshire tax. School choice advocates have written HB 1686 to siphon as much of that tax revenue as possible off into grants to subsidize home and private schools.
The 2012 program has failed to attract much business support so has remained much smaller than anticipated. However, HB 1686 would provide a large new source of donations exempt from New Hampshire tax and add further fuel to the current efforts to expand private school choice in New Hampshire.