Ivory Ella

Qualified Jobs Incentive Tax Credit

The Company

ivoryellashirtcuttingIvory Ella, LLC is an online retailer that contributes 10% of the Company’s net profits to the nonprofit organization Save the Elephants. The Company’s product line, which began with screen-printed, elephant-themed t-shirts in 2015, has expanded in recent months to include Ivory Ella branded accessories. Ivory Ella leverages a strong internet presence, supported by multiple social media channels, to drive socially-conscious consumers to their retail website. To support their operations, Ivory Ella currently employs 19 full-time employees, responsible for product design, screen-printing, sales, marketing, and shipping.

Approved Incentive

Ivory Ella is proposing to move its 19 existing full-time employees to a 38,300-square-foot facility in Westerly that will accommodate the company’s growing demand. The Company has committed to expanding by at least 11 new employees at a median salary of $50,000 over the next three years, for a cumulative total of 30 full-time employees by the end of 2018. The Corporation is recommending awarding the Company an estimated $362,055 in tax credits under the Qualified Jobs Incentive Tax Credit Program.

Explanation

  • Ivory Ella is contemplating relocating its current operations from Connecticut to a building in Westerly.
  • Growing current operations in Connecticut would save the company an estimated $290,000 in occupancy costs compared to the costs associated with a provisional lease for the Westerly facility.
  • In addition, Connecticut has offered the Company an incentive package of forgivable loans, rebates, and a job creation grant of up to $100,000 to grow its operations within Connecticut.
    • In response, the Corporation has negotiated Qualified Jobs Incentive Tax Credits to the Company valued at approximately $362,055 for the 30 new cumulative jobs.
    • The recommended term of the tax incentive agreement is five years, and Ivory Ella has indicated that it will commit to maintaining the new jobs in Rhode Island for at least the six years required.
    • Subject to the award of this incentive package from Rhode Island, Ivory Ella has agreed to relocate to Rhode Island, rather than remain in Connecticut.
  • 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.

 

Additional Documentation

 

Media Coverage

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