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Posts Tagged ‘research and development tax credit’

Priority 1 for Business

Tuesday, January 22nd, 2013

By virtue of its top billing, the number 1 is usually always a priority – it’s a good thing  to be Number 1 if you are on a sports team or you’re waiting in line for a concert ticket.

Today, the number 1 was a good thing for business because the Senate Ways and Means Committee took up SB1, a bipartisan plan to double New Hampshire’s research and development tax credit and repeal the sunset provision in current legislation. The bill was sponsored by 21 state senators and five state representatives and the committee voted 5-0 to send along. This is a number 1 priority.

Gov. Hassan visited Globe Manufacturing in Pittsfield last week as part of her Innovate NH tour. The company makes fire suits used around the world.

Under this bill, the tax credit would go from $1 million to $2 million and it would be permanent – it would never go away – and New Hampshire would be among the majority of states that offer this incentive to businesses.
Sure, other states may offer more, but this is our way of being supportive of businesses that spend time and money looking for ways to be faster, stronger, lighter, economical and otherwise more productive and cutting edge because, in the end, we all benefit.

“It is one more incentive for out of state businesses to consider New Hampshire, particularly our high tech sector, which in turn helps the state to provide well-paying jobs and further diversify the economy,” said Christopher Way, interim director of the Division of Economic Development at this morning’s hearing. “Companies of all sizes gain as it encourages small companies to remain on the leading edge of R&D, which also benefits the larger companies they in turn supply.”

Also testifying at the hearing were representatives from several businesses, trade organizations and manufacturers from around the state, including New England Wire Technologies, located in Lisbon; Freudenberg , with eight locations in New Hampshire, and Graphicast of Jaffrey. In all, about two dozen people attended this hearing.

Companies that are devoting time and money to research and development will gain and it will help, as Val Zanchuck, president of Graphicast, noted, being awarded the credit enabled him to hire three interns from Dartmouth College to conduct research on the company’s manufacturing process.

First introduced in 2007, the R&D tax credit is increasingly popular. Last year, 111 companies applied for a total of $4.1 million. Since only $1 million is available, the companies received a pro-rated amount, so one requesting the maximum of $50,000 received $12,065.

By doubling the amount available, companies would get a greater return on their applications. It tells them, and any prospective business considering a move or expansion here, that innovation matters here and that New Hampshire is committed to that.

Lorna Colquhoun
Communications Director
Division of Economic Development


Gov. Hassan Off and Running

Monday, January 7th, 2013

Gov. Maggie Hassan tours Freudenberg-NOK in Manchester on Jan. 4.

Maggie Hassan spent her first day as governor meeting with officials from Freudenberg-NOK Sealing Technologies, a company with deep roots  in the Granite State and plans for investment, expansion and creation of new jobs.

Hassan used the visit to highlight New Hampshire’s Research and Development tax credit, which she said will help to encourage more innovative businesses to come to New Hampshire, while helping companies already here to prosper.

“My Innovate NH plan calls for doubling the R&D tax credit, a measure that has bipartisan support, so we can help businesses like Freudenberg-NOK and others across the state to innovate, grow and succeed,” she said.

Freudenberg-NOK is a leading manufacturer of materials and products for the automotive, energy and aerospace industries. Last summer, company officials said they anticipate hiring up to 100 new employees and investing millions of dollars in capital expenditure over the next two years to maintain its robust commitment in the Granite State.

“The Research and Development tax credit is very popular among our manufacturing companies,” said Christopher Way, interim director of the Division of Economic Development. “Doubling the tax credit is a great first step for this new administration.”

In a statement, Leesa Smith, Freudenberg North America President and Regional Representative, called the R&D credit a meaningful investment in New Hampshire.

“It acts as an incentive for companies like Freudenberg to make investments in innovation and new technologies, which could ultimately result in the creation of new jobs.”

Hassan toured the Manchester facility on Friday afternoon, which employs about 420 people, meeting a number of workers. Freudenberg operates three companies, seven industrial facilities and employs a total of 1,300 people in the state; it began its US operations in the Granite State 60 years ago.


Lorna Colquhoun

Communications Director

Division of Economic Development