CONCORD - Gov. John Lynch today urged the House Ways and Means Committee to support legislation creating a new Coos County Tax Credit to help attract jobs to the North Country. Gov. Lynch proposed the tax credit in his state of the state address.

“It is very clear that Coos County is struggling. Average wages are significantly lower than the rest of the state; the unemployment rate, even before the latest layoffs, is much higher; and its economic growth is expected to significantly lag behind the rest of New Hampshire,” Gov. Lynch said. “This tax credit will help our efforts to bring new good-paying jobs to the families of the North Country.”

Earlier this week, 167 employees at Fraser Paper mill in Gorham were laid off. Gov. Lynch said that while the state has been working to transform the North Country from a paper-based economy to one that is more diverse, immediate action is needed.

“This is a tremendous blow to the workers, their families, the communities of Berlin and Gorham, and the entire North Country. But, Monday’s announcement, on top of the closure of Groveton Paperboard, the pulp mill in Berlin, and Wausau Paper -makes clear we need more dramatic, immediate action,” Gov. Lynch said.

The proposal would give a business that creates a job in Coos County that pays at least twice the minimum wage a $1,000 credit against its business taxes for each of the next five years. Most new businesses would pay no business taxes for their first five years. Existing businesses in Coos County would be eligible for the tax credit on any new jobs they create.

The Coos County Tax Credit will provide a significant incentive for businesses to create jobs in Coos County, helping overcome some of the unique barriers to job creation that the region faces, such as geography and cost. Businesses will be able to apply the tax credit to the Business Enterprise Tax, and any unused portion to the Business Profits Tax.

The credit is structured to protect existing jobs. For example, a company in Nashua cannot move jobs to Berlin and receive the credit. Also, an existing Coos County company cannot lay off their workforce, create a similar company and shift their workers to be eligible for the credit.

“I believe strongly that this is one of the best investments we can make in the North Country and our state’s economy,” Gov. Lynch said.

House Bill 1644 is sponsored by Reps. Scott Merrick, Bill Remick, Evalyn Merrick, Martha McLeod, John Tholl, and Sens. John Gallus, Bob Clegg, Joe Foster, Sylvia Larsen and Deb Reynolds.