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HB 635

relative to taxing non-profit entities who settle illegal immigrants as for-profit entities.

2026 Regular Session Introduced by Travis Corcoran

The bill would tax certain nonprofit settlements involving undocumented immigrants as if they were for-profit activities, changing tax treatment and reporting.

Full Committee Work Session: 06/15/2026 10:00 am GP 159
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WeVote Research Nonpartisan
Bill Summary · HB 635

Summary of HB 635 (New Hampshire, 2026 Session)

Title

Relating to taxing non-profit entities who settle illegal immigrants as for-profit entities.

Purpose and Intent

This bill appears to target non-profit organizations that enter into settlements with undocumented immigrants by classifying or treating those settlements as profit-generating activities, with an aim to impose taxes or change tax treatment on such entities. The precise scope and mechanism are not fully detailed in the provided information, but the title indicates a focus on tax treatment of non-profit entities in the context of settlements involving illegal immigrants.

Key Provisions (as inferred from title and procedural history)

  • Taxation changes: The bill would modify how the state taxes certain non-profit entities that engage in settlements involving illegal immigrants described as for-profit entities. This suggests potential:
    • Recharacterization of certain activities or incomes of non-profits as taxable.
    • Requirements to report settlements or related revenue differently for tax purposes.
  • Scope of entities: Non-profit organizations operating within New Hampshire that settle disputes or claims involving undocumented or illegal immigrants, and that might structure settlement-related activities in a way that could be considered for-profit.
  • Tax base and rates: While specific rates or brackets are not provided in the summary, the bill would establish or adjust the tax base for these entities, possibly creating new tax liabilities or changing exemptions.
  • Compliance and enforcement: The bill would presumably include provisions for enforcement, reporting, and potential penalties for non-compliance, consistent with tax legislation.

Affected Parties

  • Non-profit organizations (nonprofits) operating in New Hampshire.
  • Non-profits that enter into settlements related to illegal immigrant issues and that could be treated as engaging in for-profit activity for tax purposes.
  • The state government, specifically the Department of Revenue Administration (or equivalent NH tax authority), tasked with administration, collection, and enforcement of the new tax treatment.

Procedural and Timeline Aspects

  • Introduced in early 2025 with referrals and committee activity:
    • January 16, 2025: Introduced (in recess) and referred to Ways and Means.
    • January 29, 2025: Public hearing held February 5, 2025.
    • February 5, 2025: Executive session.
    • February 19, 2025: Retained in Committee.
    • September 16, 2025: Full committee work session noted (some scheduling cancellations later that month).
    • October 16, 2025: Committee report issued, recommended “Refer for Interim Study” (vote 19-0 in committee).
    • October 20, 2025: Executive session and committee report formalized.
    • January 7, 2026: Referred for Interim Study in the House Journal (HJ 1, P. 80).
  • Interim study recommendation suggests the bill did not advance to a final passage during the 2025 session, but the issue is being studied further instead of immediate enactment.

Potential Impact

  • Fiscal impact: If enacted, the bill could increase tax liabilities for certain non-profits and alter their financial planning, reporting, and compliance costs.
  • Administrative impact: The NH tax authority would need new rules, forms, audits, and enforcement mechanisms related to the taxation of settlement-related revenue from nonprofits.
  • Organizational impact: Nonprofits involved in settlements with illegal immigrants may need to reassess their settlement structures, accounting treatments, and disclosures to remain compliant.
  • Policy considerations: The measure touches on the intersection of nonprofit tax status and immigration-related settlements, prompting considerations of nonprofit mission alignment, public policy goals, and revenue implications for the state.

Note

  • The bill’s status in interim study indicates it was not enacted during the 2025 session and may undergo further study before any legislative action in a subsequent session. For the most current status and text, please refer to the New Hampshire General Court’s official bill records.

Compiled from official sources — confirm details with the bill’s official record.

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