CONCORD, N.H. — The Business & Industry Association applauded the state Senate’s passage of two of its legislative priorities on Thursday, March 6.

Senators unanimously passed SB 276, which will increase New Hampshire’s research and development tax credit and give an added boost to the state’s high-value advanced manufacturing and life sciences sectors. Senators also passed SB 106, a bill designed to strengthen manufacturers’ ability to participate in New Hampshire’s net energy metering program.

SB 276 raises New Hampshire’s total tax credit from $7 million to $10 million and the maximum amount a business can claim from $50,000 to $100,000. The state last increased the total credit eight years ago and the individual business amount 17 years ago. The growth in the importance of R&D and its cost leaves the current credit too low to be competitive. The bill now moves to the Senate Finance Committee.

BIA President & CEO Michael Skelton said R&D tax credits can produce significant returns, especially for companies whose growth depends on reinvestment in technologies and new processes. “The impact stretches through the economy from local jobs to R&D, which drives innovation and increases productivity,” he said.

The state Department of Business and Economic Affairs reports advanced manufacturing contributes $8.3 billion to New Hampshire’s Gross Regional Product and more than 1,100 businesses employ over 42,000 people with average annual earnings of $111,728. The life sciences sector contributes $2.8 billion with more than 600 businesses employing 11,000 workers.

SB 106 was passed in a voice vote. Skelton said the bill is one way to help businesses offset New Hampshire’s electricity costs, which are among the highest in the nation. The bill would provide an option for energy-intensive businesses such as manufacturers to use existing technology to generate additional energy onsite to help address uncompetitive prices.

“New Hampshire’s overall electricity prices have risen 61% in the last 10 years, while the U.S. increase in that time is 26%,” Skelton said. “Lowering electricity costs is vital to keeping manufacturing companies in New Hampshire and attracting new ones.”