AP: NH business tax credit created just 7 jobs

By Grant Bosse on March 4, 2010
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Norma Love of the Associated Press reviews state records of Governor John Lynch’s North Country business tax credit, and finds that it fizzled.

But Lynch’s lofty goal of rejuvenating the county fizzled with the economy and the region’s continued lack of broadband Internet, cellular coverage and other infrastructure needed to attract business.

Since the law took effect 21 months ago, only four companies have been awarded the credits, according to records reviewed by The Associated Press. Seven jobs were created, but one worker has since been laid off, the AP found. The total in credits issued against the companies’ business taxes: $6,500 – far short of the hundreds of thousands of dollars then-Revenue Commissioner Phil Blatsos projected the day the bill was signed into law.

7 jobs, compared to the 750 that Love reports were projected if the credits were fully utilized. Government does poorly when it tried to pick winners and losers, especially when its incentives come with unrealistic strings attached. And even those 7 jobs claimed are misleading. There’s really no way to know if any of those employers chose to hire workers because of the small tax incentive, or if they were simply taking advantage of free state money for jobs they would have created regardless.

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