Frequently Asked Questions - Coos County Job Tax Credit

• What is the Coos County Job Creation Tax Credit?
• Who can apply for the Coos County Job Creation Credit?
• When can I apply for the credit?
• Are there limitations on how much credit is awarded to a business organization?
• How can the business organization take the credit?
• What do I do once the Department of Resources and Economic Development has awarded the credit?
• How do I get an application for this tax credit?

What is the Coos County Job Creation Tax Credit?

During the 2008 session, the New Hampshire Legislature enacted a Coos County Job Creation Tax Credit against business taxes paid to the State of New Hampshire, 2008 Laws of New Hampshire, (House Bill 1644). The credit is granted to businesses for each new, full time, year-round employee hired in Coos County for which actual wages paid, including the amount paid by the employer for medical and dental benefits, equals or exceeds 150 percent of the current state minimum wage (job established on or after September 1, 2008, $7.25). Effective July 1, 2013, the New Hampshire Legislature extended the availability of the credit to any taxable period ending on or before December 31, 2018 and it is renewable for 4 consecutive additional years, provided that no additional tax credit shall be granted for any tax period after December 31, 2027.

Who can apply for the Coos County Job Creation Credit?

Business organizations that create new jobs in Coos County during the fiscal year by hiring one or more "qualified tax credit employees" may apply. "Qualified tax credit employee" does not include an employee that shifted to a new position because of a merger, acquisition or restructuring. Employees who are laid-off and rehired within 270 days to the same or similar positions do not qualify for the credit. Additionally, an employee must have been on the employer's payroll for at least 90 days prior to the date on which the employer claims the credit for the first tax period. If the position ceases to exist at anytime during the 5 consecutive tax periods, the employer may not claim the credit for any period in which the position ceases to exist or for any future tax periods within the 5 consecutive tax periods.

When can I apply for the credit?

Applications for the first fiscal year of the credit shall be filed with Department of Resources and Economic Development on or before three months after the close of the business organization's taxable year. The Department of Resources and Economic Development will notify the taxpayer of the amount of the credit awarded to the taxpayer.

Are there limitations on how much credit is awarded to a business organization?

The only limitation is the number of qualified employees hired in Coos County by the business organization. The Department of Resources and Economic Development will award credits of either $750 or $1,000 for each qualified employee hired by the business organization during the taxable year.

How can the business organization take the credit?

The credit may be taken against taxes due on account of taxable periods ending on and after June 9, 2008. The credit is first applied against the Business Enterprise Tax. Any remainder may be applied against the Business Profits Tax. Unused portions of the credit may be carried forward for up to 5 years.

What do I do once the Department of Resources and Economic Development has awarded the credit?

Taxpayers who have been awarded a credit from the Department of Resources and Economic Development must enter the amount awarded on the Form DP-160 and file that form with the Business Tax return for tax years ending after June 9, 2008.

How do I get an application for this tax credit?

Coos County Job Creation Tax Credit Application