CONCORD - Gov. John Lynch applauded the House Ways and Means Committee’s overwhelming support of legislation creating a Coos County Tax Credit, an important new tool in the state’s efforts to attract jobs to the North Country.

Gov. Lynch proposed the tax credit during his State of the State Address.

“We are working to bring good-paying jobs to the families of Coos County, and this new tax credit will help boost our efforts to build the North Country’s economy,” Gov. Lynch said. “Coos County is struggling. Average wages are significantly lower than the rest of the state and the unemployment rate, even before the latest layoffs, is much higher. This new credit will be an important tool in our comprehensive effort to help build the North Country economy.”

The legislation as amended by the committee, would give a business that creates a good paying job in Coos County up to 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 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 also 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 want to thank members of the House Ways and Means Committee for their thoughtful work on this legislation and for working with me to bring new jobs to Coos county, ,” Gov. Lynch said. “This tax credit is one of the best investments we can make in the North Country and our state’s economy.”

House Bill 1644 is sponsored by Reps. Scott Merrick, Bill Remick, Evalyn Merrick, Martha McLeod, John Tholl and is supported by 22 state senators.