Incentives
As the business capital of a state with no personal income tax, no sales tax and low professional business taxes, Manchester offers unique advantages that can translate directly to your bottom line. With its dynamic, educated workforce and superb quality of life, expanding or relocating your business to Manchester just makes sense. If additional incentives are what you need, we've got some tools that will make sense too.
Economic Revitalization Zone Tax Credits Program (formerly CROP Zone)
Seventeen census tracts in the City of Manchester have been designated as Economic Revitalization Zones (ERZ) (Click here for map). New and expanding businesses within these zones, which include the Downtown, Airport and other key commercial and industrial areas, are eligible to apply for tax credits against the New Hampshire Business Profits Tax and/or the Business Enterprise Tax. Certification under this program is granted by the State of New Hampshire Department of Resources and Economic Development and extends for a five tax year period. For more information contact our team at 603.624.6505 or visit the New Hampshire Business Resource Center Incentives page here.
Research and Development Tax Credit
Business and organizations that have made expenditures for qualified manufacturing research and development can take a credit against applicable state business taxes. Click here for more information.
Tax Reduction for Insurance Companies
The State of New Hampshire has reduced the state's insurance premium tax from 2% to 1%, thus reducing the overall premium taxes paid by companies doing business in New Hampshire, as well as decreasing the burden of retaliatory taxes paid by New Hampshire's domestic insurance companies in other states. Click here to download more information on the insurance premium tax.
New Markets Tax Credits
This New Markets Tax Credit (NMTC) Program permits taxpayers to receive a credit against Federal income taxes for making qualified equity investments in designated Community Development Entities (CDEs). Substantially all of the qualified equity investment must be in turn used by the CDE to provide investments in low-income communities. The credit provided to the investor totals 39 percent of the cost of the investment and is claimed over a seven-year credit allowance period. In each of the first three years, the investor receives a credit equal to five percent of the total amount paid for the stock or capital interest at the time of purchase. For the final four years, the value of the credit is six percent annually. Investors may not redeem their investments in CDEs prior to the conclusion of the seven-year period.
For additional information on New Markets Tax Credits, click here.
To view a map of the qualifying tracts in Manchester, click here.
City of Manchester Revolving Loan Fund (RLF)
The City of Manchester's Office of Economic Development provides financing assistance to businesses for the purpose of creating or retaining jobs in the City. Loans of $10,000-$50,000 may be made for working capital, while loans in the amount of $10,000-$100,000 may be granted for fixed asset acquisition and capital improvements. Click here to download an application. For more information, contact our team at 603.624.6505. (Limited funds are available at this time)
Neighborhood Facade Improvement Program
The City of Manchester provides matching grants of up to $5,000 per building or $3,500 per retail space for businesses in targeted neighborhoods for visible exterior improvements. Click here to download an application or for more information, contact our team at 603.624.6505.
Section 108 Loans
This federal program, administered by the City of Manchester, provides low-interest loans for qualifying economic development initiatives. Contact our team at 603.624.6505 for more information.
Workforce Development Training Fund
This program provides companies matching grants in an 18-month period to train newly-hired employees to foster business growth and competitiveness. The program also allows for skills upgrade training of current workers who need retraining to ensure ongoing employment. Under the program, companies can apply to receive a grant that pays up to 50 percent of the cost of a training program for their employees. All New Hampshire companies that regularly pay into the state's Unemployment Compensation Fund, including non-profits, are eligible for these grants. The program is administered by the New Hampshire Workforce Opportunity Council. Visit www.NHJobTrainingFund.org for information and applications.
Historically Underutilized Business Zone (HUB)
The HUB Zone Empowerment Contracting program provides federal contracting opportunities for qualified small businesses located in distrissed areas. Manchester's HUB Zone area includes Census Tracts 4.00, 5.00, 13.00, 14.00, 15.00 and 17.00 (click here for Map). For more information on the HUB Zone program please visit: http://eweb1.sba.gov/hubzone/internet/.
Citizen's Bank Low Interest Loan Program
The State of New Hampshire offers a low interest loan program through Citizen's Bank that provides financing from $250,000 to $10 Million. The loan is based on creating new jobs in New Hampshire. For every new job created, $40,000 can be allocated towards a loan for investments in machinery, equipment and buildings. The interest rate is offered at 5.50%. The specified jobs must be created within three years after the funds are borrowed. For more information, click here.
Ocean Bank Energy Efficiency Loan Program
Ocean Bank offers low interest loans for the purchase of new equipment and structural improvements that increase energy efficiencies. For more information, click here.
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