During its most recent meeting, the Hudson Board of Selectmen reviewed a proposed change to the Permanent & Totally Disabled Veterans Tax Credit, a policy that could impact dozens of local veterans beginning in the 2026 property tax year.
In a memo to the Board, James Michaud of the Assessing Department explained that the department had previously discussed the possibility of introducing a warrant article for the 2026 ballot to increase the Service-Connected Permanent & Totally Disabled Veterans Tax Credit (T&D).
“This bill accomplishes two state objectives,” Michaud wrote. “First, it disallows the statewide practice – enforced by the NH Department of Revenue Administration – of combining the T&D credit with the Optional Veterans Tax Credit. Second, it increases the maximum T&D credit from $4,000 to $5,000, subject to local adoption.”
Hudson currently offers a $3,000 T&D credit, a figure approved by voters in 2021. For the 2024 property tax year, 71 credits were issued. Michaud noted that the statewide average T&D credit is $1,900, with a median of $2,400. Among municipalities with populations over 20,000, the average is $2,900 and the median remains $2,400.
For the current 2025 property tax year, veterans who qualify for both the T&D credit and the $600 Optional Veterans Tax Credit receive a combined benefit of $3,600. However, under House Bill 99, that $600 optional credit will be eliminated for those receiving the T&D credit – unless the Board takes action.
“If the BOS does not introduce a warrant article to increase the T&D credit, those veterans will see their property tax bill increase by at least $600,” Michaud warned.
To address the change, Michaud outlined several options:
- Raise the T&D credit to $3,600 to make affected veterans “whole,” maintaining their current benefit level. This would require voter approval.
- Increase the credit to $4,000, which would have a minimal impact on the tax rate – approximately $28,500 in additional appropriations.
- Consider a phased approach, increasing the credit to $4,000 in 2026 and potentially to the full $5,000 in 2027, pending future Board approval.
“The Assessing Department has had informal discussions with taxpayers and veterans regarding HB 99 and its implications,” Michaud wrote. “It may be prudent to recommend a two-year process to adopt higher amounts for T&D veterans.”
Following discussion, the Board of Selectmen voted to move forward with a warrant article to increase the T&D credit to $4,000.