CONCORD - Calling it an important initiative to strengthen New Hampshire’s economy, Gov. John Lynch today signed legislation creating a research and development tax credit, which will provide incentives for companies to expand and create jobs right here in New Hampshire.

“While New Hampshire’s economy is strong now, we must act now to secure our future economic growth and to continue to attract jobs and businesses,” Gov. Lynch said. “Companies that innovate create jobs and strengthen our economy. We must do what we can to foster that innovation - and that’s exactly what we are doing today.”

The research and development tax credit, Senate Bill 134, will provide up to $1 million a year in tax credits to help companies to reinvest in their development and growth. A single company can earn up to $50,000 annually in credits.

This tax credit, along with this year’s passage of the Renewable Energy Act, the re-institution of the Job Training Fund, and the reauthorization of the economic revitalization zone tax credit, will strengthen New Hampshire’s economic future.

“These initiatives, along with the research and development tax credit, show we are committed to keeping our economy vibrant. They will help ensure New Hampshire’s future successful economic growth, and secure our prosperity,” Gov. Lynch said.

The legislation was sponsored by Sens. Joe Foster, Bob Odell, Bob Letourneau, Martha Fuller Clark, Betsi DeVries, Lou D’Allesandro, Jackie Cilley and Sylvia Larsen; and Reps. Peyton Hinkle, Bette Lasky and David Campbell.