For Immediate Release:                                  Contact: Colin Manning
Thursday, January 31, 2008                                      (603) 271-2121

Gov. Lynch Applauds Rules Committee's Action To Allow Coos County Tax Credit To Be Introduced In the House

CONCORD -Gov. John Lynch said today applauded the quick action of the House Rules Committee to allow the introduction of a new tax credit aimed at stimulating Coos Country's economy.

The House Rules Committee voted unanimously today to allow legislation creating the Coos County Tax Credit to be introduced.

"I want to thank the House Rules Committee and the sponsors for moving forward quickly on this important legislation," Gov. Lynch said. "The people of Coos County are struggling, and this tax credit will help us attract new businesses and new jobs they need to thrive."

In Coos County, the unemployment rate is higher, wages are lower and economic growth is expected to trail the rest of New Hampshire.

"That is why I believe strongly we must do all we can to help the North Country economy and this tax credit is a valuable tool in that effort. This tax credit will provide a valuable incentive for companies to overcome unique 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.

The proposal has already gained the approval of several business and economic development leaders 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. 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.

The legislation has not yet been assigned a number. The bill is being sponsored in the House by Reps. Scott Merrick, Lancaster; Evalyn Merrick, Lancaster; John Tholl, Whitefield; William Remick, Lancaster; and Martha McLeod, Franconia.

Senate sponsors are still being finalized but so far include Sens. John Gallus, Berlin; Joseph Foster, Nashua; and Robert Clegg, Hudson.

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."