Category: New Hampshire

New Hampshire Credits and Incentives

As we’ve mentioned before, our Georgia clients frequently ask us to investigate potential credits and incentives in other states where they have operations, potential acquisitions or strong relationships with customers or vendors. In addition, private equity groups ask us about potential $$ for their portfolio companies.
We were recently asked about credits and incentives in New Hampshire, and their state economic development professionals gave us some details (New Hampshire Economic Development site click here).
New Hampshire offers very few tax credits, grants or loan programs for new and existing businesses.  CNBC ranked New Hampshire #30 in their 2015 America’s Top States for Business survey (Georgia was #5 in the same survey).    
Incentives and credits include:
  • The New Hampshire Research and Development Tax Credit enables businesses to apply for tax credits on new research and development costs they can use toward business taxes paid. The credit can be carried forward for up to five years.
  • The Economic Revitalization Zone tax credit offers a short term business tax credit for projects that improve infrastructure and create jobs in designated areas of a municipality.
  • The Coos County Job Creation tax credit is awarded to businesses hiring employees for new, full-time positions that pay wages 200 percent higher than the minimum wage.

Other incentives include the New Hampshire Job Training Fund (50/50 cash match grant $750 to $100,000 for customized training) and a few revolving loan funds.

Compared to Georgia, New Hampshire has:
  • Higher corporate and lower personal income tax rates.
  • A far far narrower range of incentives.
  • Pre-approvals required for all incentives
To summarize, New Hampshire is below average for business tax incentives.  But their Eastern Seaboard location could provide advantages, depending on logistical needs.
Do any of your clients have New Hampshire connections?  If so, you will need to start collecting information and planning early!