On October 21, 2016, the New Hampshire Department of Resources and Economic Development (NH DRED) approved Lebanon's nomination of 6 areas of the City as Economic Revitalization Zones (ERZs) pursuant to RSA 162-N.
The general goal of the ERZ Tax Credit program is primarily to encourage retention and growth of existing businesses and the reuse of existing buildings. Secondarily, the program is used to attract new businesses to the State.
Once an ERZ is designated, any business located within the zone can apply directly to DRED for ERZ tax credits, which are short-term tax credits applied against the State's business profits and enterprise taxes. To qualify for the tax credits, a business must make a certain amount of capital investment in facilities and equipment and/or must create new full-time jobs. Calculation of the ERZ tax credit is based on a percentage of the capital investment made, the number of jobs created, and the salary level of the jobs created. The total amount of tax credits which can be used in any calendar year is $40,000, but eligible credits in excess of $40,000 can be carried forward for up to 5 years.
For more information about the designated Economic Revitalization Zones, please contact the City's Department of Planning and Zoning at 603-448-1457. For more information about the ERZ Tax Credit program, please contact the New Hampshire Division of Economic Development directly at 603-271-2591.