Senator David Watters
Press Release: Senator Watters Statement on Passage of Senate Bill 327 on Economic Revitalization Zone Tax Credits
The legislature passed on May 7 Senator Watters’ SB 327 which extends the availability of economic revitalization tax zone credits until 2020. The bill provides continued support for a very successful program that has promoted economic development in 38 communities, including significant job-creating and tax-base increasing projects in Dover and Somersworth. The program provides up to $825,000 a year in tax credits, and in a new provision, allows for continuation of unclaimed credit amounts from one year into future years for new projects.
Senator Watters released this statement: “This legislative action means communities can plan for future economic revitalization tax zone credits under this effective and successful program. I sponsored this legislation to promote job development and entrepreneurial partnerships between businesses and municipalities. I thank the bipartisan supporters of this bill.” Without the extension, the ERTZ credits would have expired in 2015, so action is important now to remove uncertainty for businesses and communities planning to create economic revitalization zones. The program’s credits are currently fully subscribed, an indication of the success of the tax credit. Under the program, businesses investing in an area designated by a municipality as an economic revitalization zone can receive a tax credit against state business taxes.
Dover has five zones, including the Central business district and Cocheco Mills renovations, the industrial park, Locust Street, Mast Road, and Sixth Street. These districts have played an important role in Dover’s economic development and the expansion of the tax base.
Senate Bill 327 is one of several bills Senator Watters has sponsored this session to support economic development by businesses and housing developers. He also cosponsored a bill to double the business investment tax credit, another important step in supporting growth.