A NY Times report makes it clear that financial incentives may be all it takes to lure some companies in, but getting them to stay takes something else. There will likely always be offers of bigger perks just beyond the state’s borders. But by continually striving to make New Hampshire a place where business leaders can both make money and enjoy living and raising families, the state can position itself to maintain a stable, steadily-growing economy. (Sources: SentinelSource.com; State Impact)
- Local and state governments spend $80.4 billion on corporate subsidies.
- While many states spend many hundreds of dollars per capita on tax subsidies, free property, and other kickbacks, New Hampshire spends only $30 per capita, or a total of $39 million on such incentives.
- Foss Manufacturing, in Hampton receives the greatest amount of state tax incentives and government grants, $1.6 million.
- Many companies close (leaving states on the hook for hefty loans) or use state incentives as leverage, simply packing up to go to another location if they don’t get what they want.
- Many incentives, such as tax abatements, come at the expense of local public school systems that rely on tax payments.
- Often new jobs created from the incentives pay below a living wage — contributing to persistent poverty among workers.
- The “New Hampshire Advantage,” the state’s lack of income or sales taxes, gives the state a competitive edge in drawing businesses. States, like Nevada and Wyoming, have low or no business taxes, which can save companies even more money than tax credits.
- A skilled workforce
- Good quality of life
- NH has good schools, low crime rates, plenty of open space and outdoor recreation opportunities and a relatively healthy population that enjoys good access to health care.