Qualified Jobs Incentive Tax Credit
Surplus Solutions (“SSLLC”) is a Massachusetts-based purchaser and seller of new and used laboratory, biotech, and pharmaceutical equipment globally. The Company’s concentration on these specific industries lends itself long-standing relationships with many industry players, resulting in an extensive network of direct sales contacts. SSLLC also emphasizes careful attention to targeted marketing campaigns to support sales. Beyond sales, the Company provides logistical services including packaging, storage, and equipment transport. For certain products, SSLLC offers equipment repair and refurbishment to prepare for resale.
The Applicant is proposing to purchase a 135,000 square foot building in Woonsocket to relocate its current operations from a leased 50,000 square foot warehouse, distribution, and repair facility in Fall River, Massachusetts. The Company would bring all 12 existing full-time employees to the new Woonsocket location, and add four new employees by 2018, for a total of 16. The new Rhode Island full-time employees have a median annual salary of $51,000, with the actual salaries ranging from $40,000 to executive compensation reaching the maximum allowable tax credit threshold. The Corporation is recommending awarding the Company an estimated $454,681 in tax credits under the Qualified Jobs Incentive Tax Credit Program.
- SSLLC is seeking to grow to a larger facility to support increased operations and warehousing capability.
- The Company would invest approximately $500,000 in relocation costs and the buildout of a new office in a 135,000 square foot building in Woonsocket.
- SSLLC will relocate the Company’s existing 12 employees to the new Woonsocket facility. The larger space will also support the hire of four additional employees, for a total of 16 full-time employees by 2018.
- In response, the Corporation has negotiated Qualified Jobs Incentive Tax Credits to the Company valued at approximately $454,681 for the 16 new cumulative jobs.
- The recommended term of the tax incentive agreement is ten years, and SSLLC 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, SSLLC has agreed to relocate and 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 increase of $1.3 million in personal income, sales, and corporate business tax revenues resulting from the new 16 hires, as well as an increase of $3.2 million in Rhode Island’s annual GDP once all 16 hires are in place.