BY ANDREA HECHAVARRIA
Life sciences industries are driving high growth in economic output, jobs and business creation in New Hampshire. However, New Hampshire could lose momentum on the growth of these ground-breaking companies without additional investment in research and development.
Andrea Hechavarria
NH Life Sciences, an industry trade group, supports increases to the state’s R&D tax credit.
SB 276 amends the tax credit in two ways: It raises the total tax credit value from $7 million to $10 million, and increases the maximum one business can claim from $50,000 to $100,000.
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.
Failing to raise the value of the tax credit could hinder future innovation in the life sciences and cause the state to lose out on quality careers.
The State’s Department of Business and Economic Affairs (BEA) conducted a comprehensive assessment of New Hampshire’s life sciences industry in 2023 and offered recommendations that would incentivize growth even further.
According to the report, NH is “considered nascent in the realm of startups and accelerating startup growth.” It has identified the R&D tax credit as a top priority for state investment to spur growth in small and emerging companies and attract that talent to the Granite State.
Today, the life sciences contribute $2.8 billion to New Hampshire’s gross domestic product and earn $4.3 billion in sales.
This industry employs more than 11,000 people in the highest-paying careers, on average, of any industry in the state.
The life sciences industry is attracting world-class talent and innovative businesses to the state, while making pioneering discoveries with global implications.
This tax credit program, paired with New Hampshire’s other business-friendly policies, positions the state as a magnet for pioneering businesses in medical device manufacturing, health care, biotech, pharmaceuticals and diagnostics.
Founded in 2023, NH Life Sciences aims to empower and elevate the life sciences in New Hampshire, representing a range of companies from small businesses to global enterprises.
It believes the industry has a vital role to fulfill in the economic vibrancy of the state and looks to accelerate the industry’s growth.
The association helped draft this legislation so that manufacturing businesses can recoup their R&D investments closer to the original legislation percentage and allow the companies to continue to make life-changing discoveries.
SB276 is co-sponsored by Sens. Ruth Ward, Dan Innis, Tim McGough, Rebecca Perkins Kwoka and David Watters.
Passing SB 276 will show that New Hampshire is dedicated to becoming a national hub of life sciences and being at the forefront of developing lifesaving services, treatments, drugs, devices and other health technologies.
Andrea Hechavarria is president and CEO of NH Life Sciences, a statewide life sciences association built by and for the industry.
