Qualified Jobs Incentive Tax Credit
Greystone is a manufacturer of high volume, precision CNC turned parts, with an 83-year Rhode Island legacy. The company currently employees 226 associates at its 75,000 sf Lincoln facility, including highly skilled machinists, engineers and automation technicians, to support production as a tier 2 automotive supplier.
Greystone is proposing to hire 25 new full time employees with a median annual salary of $52,000.
- Greystone currently owns and operates a separate plating facility in Virginia with the operational capacity to absorb this increased demand. By expanding these operations to Virginia instead of Rhode Island, Greystone could incur cost savings of approximately $740,000. With the award of the Qualified Jobs Tax Credits, however, Greystone has stated that it will expand operations in Rhode Island.
- Based on current salary estimates, Greystone is eligible for annual Qualified Jobs Tax Credits of $46,000, for a 10-year cumulative total of $460,000.
- The recommended term of the tax incentive agreement is 10 years, and the Company has indicated that it will commit to maintaining the new jobs in Rhode Island for at least the required 12 years.
- To fill these jobs, Greystone will advertise and recruit locally, recruit from local technical schools, recruit from engineering programs locally as well as top programs nationally, and attend regional/East Coast military hiring conferences. These positions are expected to be filled over the course of the 2016 calendar year.
- Based on a third-party analysis, over the 12 year period, the State is projected to realize a net increase of $481,000 in personal income taxes resulting from the new 25 hires, as well as an increase of $2.528 million in Rhode Island’s annual GDP attributed to Greystone’s increased capacity.
- Based on a third-party analysis, over the six year period, Rhode Island is projected to realize a projected net increase of $0.2 million in personal income taxes resulting from the new 30 hires, as well as an increase of $5.3 million in Rhode Island’s GDP attributed to Ivory Ella’s relocation.