Economic Revitalization Zone (ERZ)

What is an ERZ?

  • An ERZ is a an Economic Revitalization Zone; a chosen or designated area. The purpose is to stimulate economic redevelopment and expand the commercial and industrial base, to create new jobs, reduce sprawl, and increase the tax revenues by encouraging economic revitalization.
  • Business tax credits for projects that improve infrastructure and create jobs in designated areas. (See RSA 162-N)

ERZ Benefits:

  • Designates areas to promote investment, recruitment and job creation.
  • Helps the tax base by creating an incentive for a business to invest in and grow its business and to improve its commercial and/or industrial property.
  • Creates new jobs which helps to foster growth of the economic activity in the area.
  • The incentive increases as the wage levels increase

Eligible Projects:

  • New Construction, renovation,or expansion
  • Exisiting vacant building or multi-tenant space
  • New Equipment
  • Existing businesses in the ERZ
  • Must have new incremental Full Time Job Creation (at least 35 hours/week and is a permanent year round position)

How does my business use the tax credit?

  • The ERZ Tax Credit is used against the NH Business Profits Tax. Unused portions may be applied under the NH Business Enterprise Tax.
  • The maximum tax credit per project is $240,000 and be maxed out at $40,000 per year.
  • Unused portions of the tax credit in excess of $40,000 may be carried forward for an additional 5 years.
  • Application Deadline is February 10th following the applicant's tax year.

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