Gov. Hassan signs SB 1, increasing and making permanent the research and development tax credit.

In the economic turmoil of a few years ago, it was research and development that helped a Jaffrey company specializing in graphite mold casting technology to produce precision metal parts for a variety of industries.

Val Zanchuck, president of Graphicast, said that R&D conducted right on the shop floor helped his team continue to be innovative, to offer customers cutting edge products, to be competitive and to get through tough times.

Val Zanchuck watches as Gov. Hassan signs SB1.

“Even in the depths of (the recession), we added a new product every two weeks,” Zanchuck said, adding that in one year, his company was able to produce 69 new products. He credits the research and development tax credit, enacted a few years ago for a defined amount of time, as helping Graphicast continue its work.

Today, he was among dozens of people celebrating as Gov. Maggie Hassan signed SB 1 into law. The bill, which quickly passed through the legislature, not only doubles the research and development tax credit from $1 million to $2 million, it makes it permanent.

“Increasing funding for the research-and-development tax credit also sends a message to entrepreneurs and businesses considering where to locate that the state of New Hampshire will continue to work with them to encourage innovation and invest in our economic future,” Hassan said. “By doubling funding for the R&D tax credit, we can help more businesses develop in New Hampshire the new products that can lead to growth and job creation. Making the credit permanent will also help businesses who might need the credit down the road to plan ahead.”

In remarks during the signing ceremony, Zanchuck called the R&D tax credit a “powerful tool” for manufacturers in the state.

“As a manufacturer, we have to constantly upgrade our manufacturing methods and processes to maintain a competitive business,” he said. “New product development and process improvements are our R&D. For us, this R&D does not take place in a laboratory, it takes place on the shop floor. The R&D tax credit helps provide resources that we reinvest to improve and accelerate these activities.”

With the governor’s signature this afternoon, SB 1 sends a message to our many businesses and companies that their hard work in creating the best product they can has value. Beyond New Hampshire, it is a welcome mat of sorts to companies that the Granite State appreciates the fresh ideas that create new products and, most importantly, the jobs that will follow.

Count today as a great day for the New Hampshire economy.

Lorna Colquhoun

Communications Director

NH Division of Economic Development