Incentives

Incentives

The city, which includes the communities of East Rochester and Gonic, is home to six economic revitalization zones (ERZs) where businesses can earn tax credits for qualified capital investments that generate full-time employment.  Our staff is ready to assist you, call (603) 335-7522.

In recent years, the city has financed infrastructure improvements for a new 490,000 sf retail center and a major business park expansion to accommodate construction of a 325,000 sf manufacturing facility. While not every business works on that scale, Rochester’s experienced Economic Development staff is ready to work with businesses and employers to identify federal, state and local incentives, including tax increment financing, tax incentives and coordinate with state and federal agencies on workforce development grants.

A list of Local, State, and Regional incentives can be found here.

Tax Incremental Financing

A TIF, or Tax Increment Financing district, is a special district established by the municipality in a specific area of the community, that provides specific funding for the targeted area to fund infrastructure improvements.  In return, these infrastructure improvements (such as roads, water and sewer) serve as the spur to additional development, which generates tax dollars.  These tax dollars are used to pay  off the cost of the improvements directly.  s a special district established by the municipality in a specific area of the community, that provides specific funding for the targeted area to fund infrastructure improvements.  In return, these infrastructure improvements (such as roads, water and sewer) serve as the spur to additional development, which generates tax dollars.  These tax dollars are used to pay  off the cost of the improvements directly.  

Click here to learn more about TIF’s.

RSA 79-E

RSA 79-E is a property tax relief program that seeks to encourage investment in town or historic centers and to rehabilitate under-utilized buildings within these areas. It aims to promote strong local economies and smart, sustainable growth as an alternative to sprawl. The application process is made to the governing body by property owners desiring to make improvements that meet 79-E guidelines as well as the public benefit test. In return, the governing body may provide tax relief at a pre-rehabilitation value for a finite period.

What are the benefits of a 79E?

For Property Owners:  If approved, the property owner receives a period of relief from increased property taxes of up to 13 years, depending on the project specifics and the governing body’s discretion.  Approval of a 79-E application defers increases in assessed value related to the improvements and refurbishments of the respective building or parcel.  It is a way to incentivize the revitalization of properties that are no longer viable or attractive for developers. 

For Residents:  Properties that may have been vacant for many years are rehabilitated and help to revitalize the downtown area.  The property’s original assessed value (before rehabilitation) continues to (or possibly begins to) provide tax revenue to the municipality.  Upon expiration of the term of the RSA 79-E, the property is reassessed and taxed at full market rate.  Covenants provide assurance that the property will continue to be maintained.

For the Municipality:  it incentivizes investment in buildings that otherwise would not attract development, and eliminates blighted buildings.  Occasionally, it allows for the redevelopment of tax-exempt properties, thereby returning them to the tax rolls.  Upon expiration of the 79-E, the reassessed value of the rehabilitated property is transferred to the tax rolls.

Low Interest Loans

The city has been targeted by several key federal and state programs to spur growth and develop the region’s potential. Rochester is also a federal SBA HUB Zone with benefits including low-interest loans for qualifying small businesses.

The Rochester ED staff will work with businesses to identify tax credit programs for R & D, historic preservation, new market development and energy conservation; job training loans; and technical assistance for international trade and DOD procurement. For a list of possible incentives click here.

JOB Loan Program

The City of Rochester, NH, through funding from the U.S. Department of Housing and Urban Development (HUD) and Community Development Block Grant (CDBG) Program, offers financial assistance to eligible businesses located, expanding or relocating within the boundaries of the City of Rochester, including East Rochester and Gonic.

The JOB Loan Program is designed to provide employment opportunities through the creation and/or retention of permanent jobs within businesses – at least 51% of the new jobs are to be filled by low and moderate income persons in Rochester.

The JOB Loan Program is to fill gaps that occur with traditional financing sources. One of the main advantages of the JOB Loan Program is its flexibility with respect to terms.  Our goal is to create a financing package tailored to the business.  Click here for an application. For regional lening information, visit The Strafford Economic Development Corporation.