Boston Energy Wind Power Services Inc - Rhode Island Commerce

Boston Energy Wind Power Services Inc

The Company

Boston Energy Wind Power Services Inc (“Boston Energy”, or the “Company”) has been in operation since 2011 as a division of Bostonair Group. The Company provides a wide array of training and maintenance related services to the renewable energy sector. Boston Energy is exclusively located in the United Kingdom but is aiming to expand its global footprint by launching a facility within the United States. Boston Energy works extensively with wind turbine suppliers in the Northeast such as MHI Vestas which is located in Massachusetts.

Boston Energy provides technicians to large multinational companies such as GE, Siemens, and Rolls Royce. Technician training is a focal point of Boston Energy’s competitive strength and the company is looking to train and build a talented workforce in Rhode Island.

Approved Incentive

Boston Energy is proposing to expand in Rhode Island by creating at least 52 new full-time jobs for which it would receive tax credits.¹ The new employees will be comprised of Wind Turbine Technicians and Administrative Staff with an anticipated median annual salary of $65,000 for jobs qualifying for Qualified Jobs Incentive Tax Credits. Boston Energy expects to hire these new employees by 2023.

Explanation

The Commerce Corporation is recommending awarding Qualified Jobs Incentive Tax Credits to the Company.

  • The recommended term of the tax incentive agreement is ten years, and Boston Energy has indicated that it will commit to maintaining the new jobs in Rhode Island for at least the twelve years as required.
  • The tax credits are predicated on Boston Energy hiring 52 full-time employees. The tax credits would not be awarded until jobs are created and generating state income tax withholdings. The Company shall create and maintain 100% of the New Full-Time Job Requirement for the first through third Taxable Years. During the remainder of the Commitment Period, the Company shall remain eligible for Tax Credits so long as it maintains 80% or 42 of the New Full-Time Job Requirement, provided that the Company has created and maintained at least 52 New Full-Time Jobs in a previous Taxable Year.
  • The total credits are estimated to be worth $866,250 over the 10-year period. The actual tax credit amount will be determined by the number and wages of the new jobs created.
Based on a third-party analysis, over the twelve-year period, Rhode Island is projected to realize a net increase of $2.4 million² in personal income, sales, and business corporation taxes resulting from the new hires, as well as an increase of $7.7 million in Rhode Island’s annual GDP once the new hires are in place.

1. In order for a job to be eligible for incentivizes under the Qualified Jobs Incentive Tax Credit Program, it must earn at least the Rhode Island Median Wage which is currently $20.21 per hour
2.This does not include the value of the state income taxes generated over 10 years by the new incentivized jobs created by Boston Energy Wind Power Services, Inc, as those income taxes will be offset by the tax credit paid to the company under the Act.

Media Coverage

Providence Journal: Wind power company poised to move to R.I.
Press release: International Wind Company Picks Rhode Island for U.S. Home

 

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