New Hampshire Gov. Lynch Signs Coos County Tax Credit Into Law

Tax Credit Aims to Help Stimulate Job Growth in the North Country

June 09, 2008 -- CONCORD - New Hampshire Governor John Lynch today signed into law the Coos County Tax Credit, an important new tool in the state’s efforts to attract jobs to the North Country.

“Today, we are investing in bringing new, good-paying jobs to the people of Coos County,” Gov. Lynch said. “It is very clear that Coos County is struggling, and struggling even more than other parts of New Hampshire. This new tax credit will help provide some much needed relief.”

Under the new law, any business that creates a job paying at least 150 percent of minimum wage would be eligible for a $750 credit against its business taxes for each of the next five years, while a company that creates a job paying 200 percent of minimum wage would receive a $1,000 credit. Also, the cost of health benefits can be added to a wage to determine whether the newly created job qualifies for a tax credit and at what level.

“Families and businesses across the entire state of New Hampshire are feeling the impacts of the downturn in the national economy, and we are making a number of investments in building our economy and bringing new jobs to New Hampshire,” Gov. Lynch said. “But Coos County is facing additional challenges. On top of the national slowdown, Coos County is also experiencing a major transformational change - diversifying what has long been a paper-based economy.”

“This new tax credit will boost those efforts by encouraging businesses to create good-paying jobs in Coos County,” 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, such as geography and cost. 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. For example, a company in the southern tier 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.

The tax credit has already produced results as North American Upfitters, a Hooksett-based company, recently announced its expansion Colebrook. The company will be taking advantage of the new tax credit, which is part of the reason it chose to expand to Coos County.

House Bill was sponsored by Reps. Scott Merrick, Bill Remick, Evalyn Merrick, Martha McLeod, John Tholl, and received unanimous support in the state Senate.

Source: New Hampshire Governor

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