NH Life Sciences Applauds State Senate for Passing R&D Tax Credit Bill Bolstering Life Sciences Innovation and Jobs
CONCORD - Today, the New Hampshire Senate advanced SB276, a bill that increases the R&D tax credit, unanimously in initial Senate vote. NH Life Sciences (NHLS), an industry trade group, applauds the senators who supported this bill and showed their commitment to investing in the life sciences industry and New Hampshire's future economy.
"NHLS thanks the Senate for their strong vote supporting an increase to the R&D tax credit that will help fuel innovation and further advance our promising industry across the state," said Andrea Hechavarria, President and CEO of NHLS. "Increasing the R&D tax credit, paired with New Hampshire’s already business-friendly climate, positions our state as a magnet for pioneering businesses in medical device manufacturing, healthcare, biotech, pharmaceuticals and diagnostics – bringing enormous economic growth and opportunity for our state."
The NH Department of Business and Economic Affairs (BEA) has identified life sciences as one of four priority growth areas for the state; this bill is a key part of the effort to meet those goals.
With more than 600 businesses and 11,000 workers, the life sciences are a critical element of New Hampshire’s 21st-century economy . From Seacoast businesses like Novocure and Lonza to the Upper Valley's Novo Nordisk, to Southern NH’s BA Sciences and Resonetics - these organizations provide treatments and technologies that give hope and improve the lives of patients across the globe.
The life sciences contribute $2.8 billion to New Hampshire’s gross regional product and earn $4.3 billion in sales. A BEA assessment of the industry in 2023 identified the R&D tax credit as a top priority for state investment to spur further growth and attract that talent to the Granite State.
SB276 amends the tax credit in two ways: It raises the total tax credit value from $7 million to $10 million and increases the maximum amount one business can claim from $50,000 to $100,000. The bill will now go to the Senate Finance Committee.
Since the R&D program began in 2008, tax credits have been awarded to 3,095 applicants. Credits are decreased proportionally for applicants if the businesses exceed the total available. Every year, the approved ventures applying for the credit have exceeded the available award value — in some cases exceeding the cap by almost $4 million — resulting in companies receiving a significantly rationed amount compared to the total they could claim.
It’s been eight years since the state raised the value of all R&D tax credits that can be claimed and 17 years since the state raised the hard cap on the amount an entity can claim - resulting in a credit that is too low to be competitive.
Passing SB276 shows that New Hampshire is dedicated to becoming a national hub of life sciences and being at the forefront of developing life-saving therapies, treatments, drugs, devices and other health technologies.
As the life sciences in the Greater Boston region continues to expand, NH is uniquely positioned to recruit and capture the interest of companies looking to invest and grow here. A competitive R&D credit will be an important tool to help make this possible.
About NHLS:
Established in 2023, NHLS is the statewide life sciences association—built by the industry, for the industry. Our mission is to foster growth and awareness of the life sciences industry in New Hampshire and to attract and retain world-class talent and innovation. Every day, NHLS works to connect, convene, and facilitate the advancement of the life sciences industry in the Granite State through member programs and events, policy advocacy, industry intelligence, and education.
Media Contact NH Life Sciences:
Andrea Hechavarria