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Brad Cook
Sheehan Phinney
Bass + Green
  
Bruce Berke
Sheehan Phinney 
Capitol Group
 
Sheehan Phinney 
Capitol Group

 

Sheehan Phinney 
Capitol Group

 

Sheehan Phinney 
Capitol Group
  
Will Stewart 
Greater Manchester
Chamber of Commerce

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Northern Pass, business taxes, and refunds, oh my 

Henry Veilleux, Sheehan Phinney Capitol Group 

 

NORTHERN PASS:  In an effort to prohibit the Northern Pass Transmission Project from taking private property by eminent domain, the New Hampshire Senate passed an amended version of HB 648 that says eminent domain can only be used in instances where the regional electric grid operator (ISO- New England) says that it's crucial to the region's power needs. While Northern Pass opponents claim the vote as a big victory, Northern Pass officials note that the project has never been predicated on the use of eminent domain and that they continue to negotiate with landowners on selected portions of the proposed route.  Eminent domain has been used by utilities for generations for projects determined to be in the public interest and the effects of this legislation on other potential projects remain to be seen. The bill now goes back to the House for consideration of the Senate changes. Last March, the House voted 317-51 to pass a different kind of restriction. The House and Senate will now need to set up a committee of conference to resolves the differences in their respective bills and get one final version to the governor. The Chamber opposes HB 648.

 

BUSINESS ENTERPRISE TAX CREDIT AGAINST THE BUSINESS PROFITS TAX:  The House Ways & Means Committee has voted 18-0 to recommend passage of HB 1221, which would enable a taxpayer to apply the credit for the business enterprise tax against the business profits tax on a quarterly basis when making estimated tax payments.  The full House will vote on the bill next Wednesday. The Chamber supports this bill.

 

REQUIRING REFUNDS FOR RETURNS OF MERCHANDISE:  A subcommittee of the House Commerce Committee has voted unanimously to recommend killing HB 1445, which would require retailers to give refunds in the form of cash or credit for the return of merchandise. The full committee will take up the subcommittee's recommendation soon. The Chamber opposes this bill. 

 

ABOLISHING THE DEPARTMENT OF CULTURAL RESOURCES:  The House Executive Departments & Administration Committee has voted 15-0 to reject the proposal to abolish the New Hampshire Department of Cultural Resources, and instead replace the bill with an amendment to transfer the McAuliffe-Shepard discovery center to a private operation. The Committee noted the department's contribution to tourism is adequate to recommend its continuance. The full House will vote on the bill next Wednesday. 

 

STATE OF THE STATE:  The House and Senate will convene next Tuesday, Jan. 31, at 11 a.m. to hear the State of the State Address by Governor John Lynch.  

Workforce housing repeal bill returns; R&D tax credit increase proposed 

Will Stewart, Greater Manchester Chamber of Commerce 

 

 

With the introduction of House Bill 1282, one can't help but wonder if the memories of some legislators are wiped completely clean between legislative sessions.

  

HB 1282 seeks to, essentially, repeal the state's workforce housing law, a law that took effect in 2008 and requires municipalities to allow for a reasonable opportunity for workforce housing to exist within their boundaries. While not a strict repeal, HB 1282 would allow municipalities the ability to opt into the workforce housing law. 

 

Last year saw a very similar bill killed at the committee level by an overwhelming vote of 14-1. The full House, however, saw fit to ignore the committee's Inexpedient to Legislate (ITL) recommendation, opting to vote on and ultimately pass the bill 219-110. When the bill crossed over to the Senate, it was killed on a voice vote. But it appears that death was a very temporary one, indeed.

 

At 1 p.m., Tuesday, Jan. 31, the House Municipal and County Government will hold a hearing on HB 1282. We encourage Chamber members to testify against the bill. 

  

The existence of workforce housing (housing that allows families making median income-young professionals, blue collar workers, municipal employees and the like- in a town to afford to live there too) in our communities is of critical importance to the business community. It's bad for business when companies aren't able to hire people who can afford to live nearby. This drives up wages and increases turnover.

  

But in some municipalities, zoning laws make it such that developers can't supply the demand for workforce housing., thus hurting economic expansion.

  

Additionally, HB 1282 sends a negative message to growing business and large employers who are thinking of moving to New Hampshire.

 

If the existence of workforce housing is an issue that is important to you and your business, and you would like to testify on Tuesday, or write a letter of opposition, please contact me at 792-4107 or wills@manchester-chamber.org for talking points.

 

Get your (partial) R&D tax credit on

 

By almost any measure, the state's Research and Development Tax Credit is popular. In fact, it might be a victim of its own success.

 

Enacted for five years starting in 2007, the Research and Development Tax Credit program allows New Hampshire businesses to claim up to $50,000 against their state business tax liabilities for "qualified manufacturing research and development" expenditures.

 

The rub is that companies applying for the full $50,000 credit don't get anywhere near that amount. Due to the popularity of the program, coupled with the program's $1 million annual cap, actual tax credit amounts received are closer to $15,000 per business.

 

With the program slated to lapse in 2013, prime sponsor Sen. Bob Odell, R-Lempster, proposes, via Senate Bill 295, to increase the annual cap from $1 million to $2 million, as well as to repeal the 2007 law's five-year sunset clause.

 

The Chamber supports SB 295, which has a public hearing at 1:30 p.m., this coming Tuesday, Jan. 31. We would love to hear from any members who have taken advantage of the R&D Tax Credit. If you would like to see the R&D Tax Credit program continued and expanded, please contact me at 792-4107 or wills@manchester-chamber.org.