For Immediate Release:                                  Contact: Colin Manning
Thursday, May 15, 2008                                  (603) 271-2121
                                                               

Gov. Lynch Applauds Passage of
Coos County Tax Credit

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

CONCORD - Gov. John Lynch today applauded the Senate's passage of the Coos County Tax Credit, an important new tool in the state's efforts to attract jobs to the North Country.

"I believe strongly that this is one of the best investments we can make in the North Country and our state's economy. I want to thank the Senate for its strong support of this new economic development tool." Gov. Lynch said. "It is very clear that Coos County is struggling, and struggling even more than other parts of New Hampshire. This legislation will help provide some much needed relief."

Under the amended version of the bill, a 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.

"I understand that families and businesses across the entire state of New Hampshire are feeling the impacts of the downturn in the national economy," Gov. Lynch said. "But on top of that slowdown, Coos County is also experiencing a major transformational change as it works to diversify its paper-based economy. This new tax credit is a tremendous incentive and will help encourage businesses to create good-paying jobs in Coos County."

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 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.

House Bill 1644 is sponsored by Reps. Scott Merrick, Bill Remick, Evalyn Merrick, Martha McLeod, John Tholl, and Sens. John Gallus, Bob Clegg, Joe Foster, Sylvia Larsen and Deb Reynolds.