Qualified Jobs Incentive Tax Credit
Granite is a leading telecommunications service provider for businesses and governmental entities in the United States and Canada with multiple locations. These services include connectivity for voice, data, internet, wireless, and video streaming, as well as network security solutions. Granite proposes customized geographical solutions to consolidate communications, boosting network performance while reducing capital investment for clients. In total, the Company’s services touch 5,000 corporate clients at 600,000 locations, including 85 Fortune 100 companies. The Company’s annual revenues exceed $1.1 billion, and it has no debt. Granite maintains a well-known and significant charitable presence in Massachusetts, and has stated its intention to expand the reach of its charitable giving locally in Rhode Island.
The Applicant is proposing to expand its existing operations at its regional headquarters in Lincoln by an additional 50 new full-time jobs, requiring 23,000 additional square feet of office space at its current location. The new roles, primarily sales and operational functions, would be hired by 2019 to support the Company’s anticipated growth. The new full-time employees have a median annual salary of approximately $48,293, with the actual salaries ranging from $40,000 to $70,000. The Corporation is recommending awarding the Company an estimated $779,464 in tax credits under the Qualified Jobs Incentive Tax Credit Program.
- Granite’s current growth strategy requires additional sales roles and associated support functions.
- The Company would invest approximately $1.0 million in tenant improvements and fixtures and equipment to accommodate the new full-time employees in Lincoln.
- Given the existence of other Company-controlled offices nationally, including available space at the Quincy headquarters, Granite could reduce costs by locating the proposed additional 50 full-time employees elsewhere.
- In response, the Corporation has negotiated Qualified Jobs Incentive Tax Credits to the Company valued at approximately $779,464 for the 50 new cumulative jobs.
- The recommended term of the tax incentive agreement is ten years, and Granite has indicated that it will commit to maintaining the new jobs in Rhode Island for at least the twelve years required.
- Subject to the award of this incentive package from Rhode Island, Granite has agreed to add the new full-time positions in Rhode Island.
- Based on a third-party analysis, over the twelve-year period, Rhode Island is projected to realize a projected net increase1 of $1.8 million in personal income, sales, and corporate business tax revenues resulting from the new 50 hires, as well as an increase of $11.4 million in Rhode Island’s annual GDP once all 50 hires are in place.