MANCHESTER - Gov. John Lynch today announced that businesses may soon begin applying for the newly created research and development tax credit, which is aimed at attracting and keeping innovative jobs in New Hampshire.

Gov. Lynch made the announcement at Osram Sylvania, a lighting manufacturing company with locations in Manchester, Exeter and Hillsborough. Osram Sylvania recently decided to locate a new product line and invest in its Manchester location rather than manufacture the new product in Germany.

“As Governor, I am committed to helping businesses grow and create jobs here in New Hampshire. That is why we put in place this year a new research and development tax credit. By encouraging innovation, this credit will help businesses create the products and the jobs of the future right here in New Hampshire,” Gov. Lynch said.

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

The legislation creating the tax credit 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.

Gov. Lynch and legislators also took a number of other steps this past legislative session to support economic development and job growth. In addition to creating the research and development tax credit, Gov. Lynch joined with lawmakers to:

• Re-establish the Job Training Fund to help workers and the companies that employ them compete in this changing global economy;
• Extend the Economic Revitalization Tax Credit to assist cities with downtown revitalizations and to help bring much needed businesses to rural areas;
• Set the stage for the state’s energy future with passage of the Renewable Energy Act, which will encourage the development of renewable energy companies in New Hampshire and help stabilize energy costs;
• Make a significant investment in building New Hampshire’s future workforce by ensuring more of young people have the opportunity to graduate with a high school diploma, and have access to affordable higher education.
I urge all New Hampshire businesses to take advantage of the tools we are providing to help them compete and grow,” Gov. Lynch said. “They will help ensure New Hampshire’s future successful economic growth, and secure our prosperity.”

The credit may be taken against taxes due on account of taxable periods ending on and after September 7, 2007.

The Research and Development Tax Credit Application, Form DP 165, is available on the Department's website, www.revenue.nh.gov and by calling the Department's forms line at (603) 271-2192.

Applications for the first fiscal year of the credit shall be filed with the Department on or before June 30, 2008. The Department will send acknowledgement letters to all applicants by July 31, 2008. Applicants will be notified, by mail, of award amounts granted to them by September 30, 2008.