Business Facilities - March 2008 - (Page 44)

BUSINESS REPORT New Hampshire tainment expenses; and costs resulting from violations of (or failure to comply with) federal, state, or local laws and regulations. A 10-member Job Training Grant Review Committee reviews the applications and makes recommendations to the state Department of Resources and Economic Development (DRED) Commissioner George Bald. The Workforce Opportunity Council administers the Job Training Fund for DRED. NORTHERN NH TAX CREDIT Coos County—the county that forms the pointed northern tip of New Hampshire, sharing borders with Vermont, Maine, and Québec, Canada—has the chance to gain a new tool to attract business in January. A proposal backed by Gov. Lynch would give a business that creates a job in Coos County a $1,000 credit against its business taxes for each of the next five years, so long as the job pays at least twice the minimum wage. 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. Businesses will be able to apply the tax credit to the Business Enterprise Tax, and any unused portion to the Business Profits Tax. The county, part of what’s known locally as the North Country region, faces unique barriers to investment, says Gov. Lynch. Coos County’s NEW HAMPSHIRE’S NEW R&D INCENTIVE In 2007, the New Hampshire Legislature enacted a research and development credit against business taxes paid to the state. For each of the next five fiscal years, $1 million is available to fund the credit. The credit may be taken against taxes due on account of taxable periods ending on and after September 7, 2007. It’s first applied against the business profits tax; any remainder may be applied against the business enterprise tax. Unused portions of the credit may be carried forward for up to five years. Only companies that have made qualified manufacturing research and development expenditures during the fiscal year are eligible for the credit. (Qualifying expenditures are wage amounts attributable to New Hampshire that make up lines 5, 24, or 49 of the business organization’s Federal Form 6765.) Applications for the first fiscal year of the credit must be filed with the state on or before June 30, 2008, with award amount notifications to be announced on September 30, 2008. The amount of the credit is 10% of the business organization’s qualified manufacturing research and development expenditures or $50,000, whichever is less. If enough businesses were to apply for the credit in one year such that it would exceed the $1 million budget allotment, all credits for that year would be reduced proportionately. remoteness makes it more expensive to move goods between it and major centers of commerce. “Any time you can cut taxes to help businesses grow and create jobs, it’s the perfect place to start,” says Steve Griffin, senior vice president of Isaacson Steel in Berlin, NH, which is within Coos County. “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.” 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. The credit is specifically structured to protect existing jobs; for example, a company in Nashua, NH cannot move jobs to Berlin and receive the credit. Also, an existing Coos County company can’t lay off its workforce, create a similar company, and shift its 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,” says Barry Normandeau, owner of a Coos County business, Normandeau Trucking in Groveton, NH. TOP 10 NEW HAMPSHIRE EXPORTS Rank 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Export Industrial machinery, incl. computers Electric machinery, incl. sound and TV equip. Optical and medical instruments Plastics and related articles Vehicles and parts, excl. rail Iron and steel Wood, wood articles, wood charcoal Glass and glassware Paper, paperboard, paper articles Rubber and rubber articles 2007 Value $892.2 million $772.3 million $309.2 million $124.0 million $71.0 million $54.6 million $51.9 million $43.2 million $39.0 million $34.8 million Change, 2006-07 4.3% 4.3% 6.3% -2.8% 53.6% -9.2% -0.2% -1.73% -7.4% 3.9% SOURCE: INTERNATIONAL TRADE RESOURCE CENTER, MARCH 2008 44 MARCH 2008

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Business Facilities - March 2008 Contents First Word Snapshots California Seeks Immigration Reform To Spur Economic Growth Outside the Biotechnology Clusters Global Biotech Competition Heats Up Location Is Key To Your Bottom Line New Incentives For New Hampshire Metro Spotlight: Jersey City, NJ Europe's Center For Goods, Real and Virtual Access Your Markets From Pennsylvania Corporate Moves: Illinois Louisiana Upgrades Important Port Road Projects To Accelerate Michigan's Economy Corporate Moves: South Carolina Metro Spotlight: Salt Lake City, UT Advertiser Index Inside LiveXchange

Business Facilities - March 2008

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