Cottage Food Laws in New Hampshire
Essential Guide for Home-based Producers
This article is part of our Guide on Cottage Food Laws State By State
Cottage Food Laws play a significant role in promoting local food production and small businesses in New Hampshire. These laws allow residents to produce and sell non-potentially hazardous foods from their home kitchens without needing expensive commercial kitchen licenses. Opening doors for entrepreneurs and hobbyists alike, these laws enable the growth of homemade food businesses in the state while maintaining food safety standards.
In New Hampshire, the Cottage Food Laws are regulated by the New Hampshire Department of Health and Human Services. They oversee guidelines and restrictions regarding which types of foods can be produced, how they must be packaged and labeled, and sales limitations. Compliance with these regulations ensures that consumers receive safe, high-quality products from home-based food businesses.
Understanding and navigating the Cottage Food Laws in New Hampshire can be crucial for those who are passionate about starting a home-based food business. By familiarizing themselves with the legal requirements and best practices, aspiring entrepreneurs can turn their culinary talents into a successful and thriving enterprise, contributing to the state's diverse and vibrant food scene.
Cottage Food Laws Overview
Definition
Cottage Food Laws are regulations that allow individuals to produce and sell certain types of foods made in their homes. In New Hampshire, these laws pertain to non-potentially hazardous food products, meaning those items that do not require refrigeration to stay safe for consumption. Examples of such products include baked goods, jams, jellies, and granola (how long does granola last?).
Purpose
The purpose of the Cottage Food Laws in New Hampshire is to support and encourage the growth of small-scale, home-based food businesses. By allowing entrepreneurs to start businesses with relatively low overhead costs, these laws create opportunities for individuals to turn their passions for cooking and baking into a viable source of income. Additionally, these laws help promote local food production and foster community connections among residents who share a love for homemade, artisanal goods.
Permitted Food Items
In New Hampshire, Cottage Food Laws allow individuals to produce and sell specific categories of food items from their residential kitchens. These home-based food businesses help to support local economies and provide entrepreneurs with an opportunity to pursue their passions. This section will outline the food items permitted under New Hampshire's Cottage Food Laws.
New Hampshire's Cottage Food Laws are somewhat restrictive in the types of foods that can be produced and sold. The permitted food items include:
Baked goods that are non-potentially hazardous, such as bread, cookies, and pastries.
Jams, jellies, and preserves made from high-acid fruits.
Acidified foods, such as pickles and salsa, as long as the pH level does not exceed 4.6.
Dried herbs(how long do dried herbs last?) and dried tea blends.
Homemade candies, such as toffee, fudge, and brittles.
It is important to note that potentially hazardous foods, those requiring temperature control for safety, are not allowed under New Hampshire's Cottage Food Laws. Examples of prohibited items include:
Dairy products, such as cheese, milk, and yogurt.
Meat and poultry products.
Perishable baked goods that require refrigeration, such as cheesecake and custard-filled pastries.
New Hampshire also requires that Cottage Food producers register with the Department of Health and Human Services. Additionally, those producing acidified foods must obtain a food processing permit and complete a food safety course.
New Hampshire's Cottage Food Laws are designed to protect consumers while providing a supportive environment for small business owners. By following the guidelines for permitted food items, entrepreneurs can take advantage of the opportunities offered by these laws.
Licensing and Registration Requirements
Application Process
In New Hampshire, individuals looking to start a cottage food operation must first go through the application process. This involves:
Contacting their local health department to inquire about specific local requirements and ensure they are in compliance.
Completing a Cottage Food License Application, which includes providing information on the operation's location, contact information, and a list of products that will be sold.
Submitting the application to the New Hampshire Department of Health and Human Services (DHHS) for review.
Undergoing a home kitchen inspection conducted by a DHHS representative to verify that the operation meets all required food safety standards.
After successfully passing the inspection, a cottage food license will be issued. It is important to note that cottage food licenses must be renewed annually, and any changes to the operation must be reported to the DHHS.
Fees
The fees associated with starting a cottage food operation in New Hampshire are relatively minimal. For the initial licensing process, the application fee is $50. Each subsequent annual renewal requires a fee of $25.
While these fees cover the licensing aspect, any additional costs connected to the operation, such as necessary kitchen upgrades or purchasing food handling equipment, are the responsibility of the cottage food operator.
Food Labeling
In New Hampshire, proper food labeling is crucial for businesses operating under the Cottage Food Laws. It aids in providing transparency, ensuring consumer safety and trust, and helps businesses maintain compliance.
Cottage food producers must adhere to certain labeling requirements to sell their products. Labels must include the name and address of the cottage food operation, full product name, list of ingredients (in descending order by weight), and any known allergens present in the product. Moreover, labels must clearly state that the food is made in a homestead food operation that is not subject to New Hampshire's food safety regulations. For example, a statement could read, "This product is made in a home kitchen not subject to NH food safety inspections."
Nutrition labeling is generally not required for cottage food products. However, if any nutritional claims are made (e.g., "low fat" or "high fiber"), the label must include a nutrition facts panel as per the guidelines set by the U.S. Food and Drug Administration (FDA).
As the onus of responsibility falls on the cottage food producer, compliance with labeling requirements is crucial. Familiarizing oneself with these regulations ensures transparency to customers, reduces the risk of liability, and contributes to the producer's credibility in the market.
Inspections and Compliance
Cottage Food Laws in New Hampshire regulate the production and sale of homemade food items, balancing safety concerns with fostering small businesses. To achieve this balance, proper inspections and compliance with health regulations are essential.
New Hampshire's Department of Health and Human Services (DHHS) carries the responsibility to monitor and enforce Cottage Food Laws. Producers must comply with certain regulations, including proper labeling and restrictions on selling specific high-risk products. For example, perishable items or those requiring refrigeration are not allowed under Cottage Food Laws.
The DHHS conducts routine checks on cottage food operations to ensure all producers follow established guidelines. When setting up a cottage food business, operators should always consult their local DHHS office to understand necessary requirements. These inspections focus on various aspects such as sanitation, storage, and handling practices.
While the state does not mandate formal food safety training for home-based producers, it is advisable to take a course to minimize various foodborne risks. Producers can find numerous online and in-person courses offered by local and national organizations. Keep in mind, maintaining up-to-date knowledge might prevent potential health hazards and unanticipated consequences.
In case of a violation or dispute, producers must cooperate with DHHS and rectify any issues. Noncompliance can lead to penalties, ranging from temporary suspension of sales to fines and even revoking the producer's license.
It is essential for all involved in the cottage food industry to maintain high standards in production and handling. By adhering to inspections and compliance requirements, cottage food producers can ensure the safety and quality of their products.
Sales and Distribution
In New Hampshire, the Cottage Food Laws allow producers to sell their products directly to consumers. This includes sales from the producer's home, at farmer's markets, community events, and online. The state's regulations ensure that cottage food products are properly labeled and comply with food safety standards to protect consumers.
Cottage food producers in New Hampshire are required to register with the Department of Health and Human Services (DHHS) and maintain their registration annually. This process involves obtaining a food safety certification, which may require completion of food safety courses and an exam. Once registered, producers must adhere to the state's regulations, including maximum sales limits.
New Hampshire has set an annual gross sales limit of $20,000 for cottage food producers. This limit is in place to maintain a balance between supporting local businesses and ensuring food safety for consumers. Producers are required to maintain records of their sales to ensure they do not exceed this limit.
When distributing cottage food products, proper labeling is essential. New Hampshire law mandates specific labeling requirements, such as including the name and address of the producer, a list of ingredients, and a statement that the product is made in a home kitchen. This information must be clearly visible and easy for consumers to read.
While online sales are permitted within the state, shipping cottage food products across state lines is not allowed. This is due to differing food safety regulations and limitations set by the Federal Food, Drug, and Cosmetic Act. Producers should be aware of these restrictions to avoid legal complications.
In summary, New Hampshire's Cottage Food Laws provide opportunities for local producers to sell their products directly to consumers within the state. By complying with registration, labeling, sales, and distribution regulations, cottage food producers can contribute to their community's economy while maintaining food safety standards.
Taxation
In New Hampshire, individuals operating under the Cottage Food Laws are subject to taxation on their income. The state imposes a Business Profits Tax (BPT) on businesses earning more than $50,000 in gross receipts during the tax year. This applies to sole proprietors, partnerships, and other entities operating within the state.
The tax rate for the BPT in New Hampshire is 7.7% for the year 2023. This tax is applicable on the net income (revenues minus expenses) generated through the sale of cottage food products. In addition to the BPT, the state also levies a Business Enterprise Tax (BET) on enterprise values (wages, interests, and dividends), with a rate of 0.6%.
Cottage Food Operators (CFOs) are required to register their business with the New Hampshire Department of Revenue Administration (NHDRA). They must obtain an EIN (Employer Identification Number) from the IRS and complete all the necessary tax forms, including the NH-1040 for BPT and NH-1065 for the BET. It is important to maintain accurate records of income and expenses to ensure proper tax filing.
New Hampshire does not collect sales tax on food items in general, which includes cottage food products. However, if a CFO sells nonfood items or operates in a retail capacity beyond the Cottage Food Laws, they may be subject to collecting and submitting sales tax.
In summary, Cottage Food Operators in New Hampshire should be aware of their tax responsibilities, including the Business Profits Tax and Business Enterprise Tax. Proper documentation and record-keeping are essential for compliance with state tax regulations. While food sales are exempted from sales tax, any additional retail activities may require further tax considerations.
Cottage Food Law Updates
New Hampshire's cottage food laws have evolved in recent years to promote the growth of small food businesses operating from home kitchens. The introduction of House Bill 574 in 2019 expanded the range of products allowed for sale, offering greater opportunities for home-based food entrepreneurs.
Under the updated laws, producers are now able to sell non-hazardous, low-risk food items directly to consumers without the need for licensing or inspections. These items include baked goods, jams, jellies, and pickles. Additionally, producers are allowed to cultivate and sell mushrooms, subject to specific requirements and guidelines.
In the interest of public safety, certain limitations still apply to cottage food production. The sale of potentially hazardous food items, such as those containing meat or dairy, remains prohibited. Additionally, all products must be properly labeled with the name and address of the producer, as well as a list of ingredients and potential allergens.
While these cottage food law updates have made it easier for small-scale producers to enter the market, they should remain aware of local regulations and restrictions. Some municipalities may have zoning ordinances in place that prohibit or restrict home-based food businesses.
By staying informed about the latest updates to cottage food laws, aspiring food entrepreneurs in New Hampshire can maximize their potential for success while maintaining compliance with necessary regulations.
