Business groups backing tax credit

In the Nashua Telegraph, Kevin Landrigan reports on that New Hampshire businesses are voicing their opposition to the Senate budget.

A broad coalition of business groups urged the state Senate to abandon plans to suspend a lucrative tax credit for profit-making corporations.

About two-dozen business leaders warned Monday this two-year suspension of the tax credit could cause some small businesses to fail and hamper the ability of others to recover from this recession.

BAE Systems lobbyist Jeff Rose said it would increase his company’s taxes by 50 percent and cost in the “millions of dollars.’’

“The elimination of this credit would be a dramatic penalty on job creation in this state,’’ Rose said at a news conference.

The two-year state budget that the Senate Finance Committee recommended would eliminate the credit for 2010 and 2011. Companies claim the credit in payments of the Business Enterprise Tax against what they owe in Business Profits Tax.