CONCORD - Gov. John Lynch today applauded the Senate Ways and Means Committee for its unanimous 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 testified in support of the bill this morning, and the committee then voted 4-0 to recommend passage by the full Senate. The House passed the legislation last month 236-73.

“It is very clear that Coos County is struggling, and struggling even more than other parts of New Hampshire. Families and businesses across the entire state of New Hampshire are feeling the impacts of the downturn in the national economy,” Gov. Lynch said. “But on top of that slowdown, Coos County is also experiencing a major transformational change as it works to diversify its paper-based economy. That is why I am proposing the creation of this new tax credit to encourage businesses to create good-paying jobs in Coos County.”

Under the amended version passed by the House, a business that creates a job paying at least 150 percent of minimum wage would be eligible for a $750 credit against its business taxes for each of the next five years, while a company that creates a job paying 200 percent of minimum wage would receive a $1,000 credit. Also, businesses that provide health benefits can add that cost to the wage to determine whether the newly created job qualifies for a tax credit and at what level.

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. “I ask you to move quickly and support this legislation so we can help ensure the North Country economy not only survives, but also thrives.”

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.