New Tax Credit for Jobs Created in Coos County
June 10, 2008
The Coos County tax credit was signed into law on Monday. Governor John Lynch held a mock signing of the bill at Steel Elements in Berlin, on Monday afternoon. He officially signed the bill into law earlier in Concord. Lynch was joined by community members, legislators and representatives from the Department of Resources and Economic Development.
The tax credit offers between $750- $1,000 in tax credits for a business, in Coos County, creating new jobs paying either 150-200 percent over the minimum wage. “I think this is defining legislation for Coos County,” said Lynch.
Lynch said the tax credit will encourage perspective employers to look closer at relocating or creating jobs in the North County. He added that Coos County already has a dedicated workforce, no sales or income tax, a great quality of life and now can offer even more to people looking at the area.
“What a great marketing tool it [the tax credit] gives us,” said Lynch. Under the new law, a business that creates a job paying 150 percent of the minimum wage is eligible for $750 in tax credits for five years. A job that offers 200 percent of the minimum wages is eligible for $1,000 in tax credits for five years. The tax credit comes off of the business tax.
Part of the amendment made to the legislation, the cost of health care is included when it is determined if a job is eligible for the tax credit. “A bill like this is just perfect for us,” said Scott Coulombe, president and CEO of Steel Elements.
Steel Elements is currently rebuilding its facility in Gorham, that burned down in a fire in March 2007. After the fire, the company got a great deal of help from the governor’s office and other agencies to get set up at the facility in Berlin. Coulombe said the company has been “growing like weeds” and he plans to continue expanding.
According to a press release from the governor’s office, the tax credit is designed to protect existing jobs. Existing business will not be eligible for the credit if they shut down a facility elsewhere in the state and move to Coos County. Likewise, an existing business in the area cannot lay off its workforce, restart operations and rehire a workforce and still be eligible for the tax credit.
Lynch touted an early application of the tax credit for a business expanding its operations in Colebrook. Lynch said one of the reasons North American Upfitters, from Hooksett, chose Colebrook was the tax credit.
State Representative Scott Merrick, a primary
sponsor of the bill, said the tax credit will help the county diversify its
economy by attracting new business into the area. “We’re not just going to
survive, we’re going to do really well in the future,” said Merrick.
The Coos County tax credit was a policy initiative from Lynch that he introduced
in his state of the state address.
The bill passed through both the state Senate and House of Representatives. In the House of Representatives, the bill passed 236-73, and the Senate voted unanimously to support the bill. “It’s a total new day in the North County,” said state Senator John Gallus, also a sponsor of the bill.
Gallus said the tax credit is one item in the toolbox to rebuild the North Country. He added the tax credit is also part of the marketing of the area to prospective industries and employers. The new tax credit will help the area become more economically sound and prosperous, like it was in the old days, said Gallus. “We can bring back to the glory days we had at a one time,” said Gallus.