Coos County Tax Credit Will Be An Important New Tool in New Hampshire’s Efforts to Boost Struggling North Country Economy

North Country Business Leaders Support Initiative

January 24, 2008 -- CONCORD - A Coos County Tax Credit will be an important new tool in the state’s efforts to attract new jobs to a struggling North Country, New Hampshire Governor John Lynch said.

“Our state’s economic development team is aggressively reaching out to businesses encouraging them to bring jobs to the North Country. This will be an important new tool in those efforts,” Gov. Lynch said.

In marketing the state, and the North Country region, the state promotes Economic Revitalization Tax Credits, which provides incentives for business looking to locate in rural or economically depressed areas; job training funding; and loans through the New Hampshire Business Finance Authority, among other economic development tools.

“But there are unique barriers, including geography and costs, that may prevent some businesses from locating in Coos County. This tax credit will provide a valuable incentive for companies to overcome those barriers and create jobs in Coos,” Gov. Lynch said.

The proposal would give a business that creates a job in Coos County that pays at least twice the minimum wage a $1,000 credit against its business taxes for each of the next five years. Most new businesses would pay no business taxes for their first five years. Existing businesses in Coos County would be eligible for new jobs they create.

“Any time you can cut taxes to help businesses grow and create jobs, it’s the perfect place to start. I think this a fantastic idea. I am sure there are a number of companies that can benefit from this, and the North Country will benefit through the creation of jobs,” said Steve Griffin, senior vice president of Isaacson Steel in Berlin.

In Coos County, average wages are significantly lower, the unemployment rate is much higher and economic growth is expected to lag behind the rest of the state.

“As I have traveled across Coos County, I have met people whose families came to the North Country generations ago to work in the mills, bringing with them a strong work ethic. With the closing of the mills in Berlin and Groveton, these people who love their homes and their communities fear they may need to uproot in order to find good paying jobs,” Gov. Lynch said. “Their children don’t see their futures in the North Country.

“This is not just a North Country issue. It is a New Hampshire issue because we all care about the North Country. We need to act to ensure the North Country’s future is bright, and that the economy not only survives, but also thrives,” Gov. Lynch said.

The Coos County Tax Credit will provide a significant incentive for businesses to create jobs in Coos County, helping overcome some of the unique barriers to job creation that the region faces. Businesses will be able to apply the tax credit to the Business Enterprise Tax, and any unused portion to the Business Profits Tax.

The credit is structured to protect existing jobs, so for example, a company in Nashua cannot move jobs to Berlin and receive the credit. Also, an existing Coos County company cannot lay off their workforce, create a similar company and shift their workers to be eligible for the credit.

“I believe this idea from the Governor of a tax credit for new jobs being brought to Coos County is a great way to help the North Country economy. I endorse it wholeheartedly,” said Barry Normandeau, owner of Normandeau Trucking in Groveton.

Gov. Lynch’s proposed tax credit is part of an overall plan to help strengthen the economy of the North Country and New Hampshire. The Governor acted with lawmakers last year to pass a number of bills to help foster economic development, including reinstating the Job Training Fund, creating the Research and Development Tax Credit and reauthorizing the Economic Revitalization Tax Credit.

“New Hampshire’s economic successes are due to fact we have a strong and educated workforce, a diverse economy, a business-friendly tax structure, and because we’ve made sound investments in our future,” Gov. Lynch said. “We must continue to work together and act to keep the economy of the North Country and New Hampshire strong.”

Source: New Hampshire Governor

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