NH Business Tax Credit and Grant Programs
The article below give you some insights of available tax credits and grant programs in New Hampshire that can assist NH businesses.
5 Lucrative NH Business Tax Credit and Grant Programs
“New Hampshire’s business allure begins with its favorable tax environment – no sales tax and no personal income tax being chief among the benefits of doing business in the Granite State.
But what gets overlooked sometimes in the face of these popular business advantages are the other valuable opportunities for tax credits and matching grants in NH. Millions of dollars in credits and grants are available every year for businesses to help them expand, train their personnel, innovate across service functions, and so much more.
Here’s a quick overview of NH’s five main business tax credit and matching grant opportunities:
1. NH Job Training Fund. As their website notes, “Talent development is a major component of New Hampshire’s economic vitality, and businesses large and small realize the importance of a skilled and educated workforce.” The fund matches 1:1 for employee training through NH’s community college system, or through private training if the classes aren’t available in any of those seven colleges.
2. Community Development Investment Program (CDIP). Also known as the Tax Credit Program, the state’s Community Development Finance Authority (CDFA) created this program to “enable businesses to invest cash, securities, or property to fund economic or community development projects in exchange for this 75% tax credit which can be applied against any or all three of the business profits, business enterprise, or insurance premium taxes.” When federal tax benefits are factored in on top of that, the savings are extraordinary.
3. Economic Revitalization Zone (ERZ) Tax Credits. Various municipalities in NH have applied for and been approved as Economic Revitalization Zones, and businesses which create new jobs in any of these areas may be eligible, according to the state’s Division of economic Development, for “tax credits to be used against your Business Profit Tax and Business Enterprise Tax” (the two forms of business tax in New Hampshire).
4. Research and Development Credit. Though manufacturing companies are often cited as being the primary beneficiaries of this program, CPA firm Nathan Wechsler & Company of Concord notes that other companies can take advantage of this credit based on activities that companies “undertake every day to stay competitive.” The credit can reach up to $50,000 per year to be applied against the Business Profit Tax and Business Enterprise Tax, and can be carried forward into future years as well.
5. Coos County Job Creation Tax Credit. Businesses looking to expand, relocate, or redomesticate to the northern part of the state may be eligible for an additional tax advantage, depending on wages paid. For each new job paying at least 150 percent of minimum wage, a business can receive a $750 credit against its business taxes per job for each of the next five years. A company that creates a job paying 200 percent of minimum wage receives a $1,000 credit for each job, for each of the next five years.
With programs like these, savvy businesses can reap significant savings in their training expenditures, innovation activities, job creation, and community investments. Tap into any or all of them in more detail with the links in this post, and contact the Division of Economic Development to learn more about how they can benefit your own company.”