Collette - Rhode Island Commerce

Collette

The Company

Collette has been in operations since 1918 and offers comprehensive travel packages across all seven continents. The Company’s headquarters are located in Pawtucket, Rhode Island and is a third generation, family-owned company with offices in the United States, Canada, Australia, and the United Kingdom. Collette’s travel collection features comprehensive land tours, river cruises, rail journeys, small group tours, family trips, garden holidays and more. Collette operates two charitable foundations: the Alice I. Sullivan Foundation, which focuses on charities at the state and local level and the Collette Foundation, which concentrates on giving back in those communities around the world with an emphasis on basic needs such as hunger and education. Collette is a founding member of the Pawtucket Foundation, which serves as a catalyst for positive change on a local level. For nine years in a row, Collette has been voted as one of the Best Places to Work in Rhode Island and one of the Healthiest Employers in Rhode Island as determined by surveys conducted by Providence Business News. The Company was also highly commended in the Wellbeing Award Category of the 2017 North American Employee Engagement Awards.

Approved Incentive

Collette is proposing to expand in Rhode Island by creating at least 50 new full-time jobs for which it would receive tax credits(1). The new jobs are projected to be filled by a range of information technology, product design, development, marketing, and professional services, with an anticipated median salary of $59,000 for jobs qualifying for Qualified Jobs Incentive Tax Credits. Collette expects to hire these new employees by 2021.

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 Collette 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 Collette hiring 50 full-time employees by 2021. The tax credits would not be awarded until jobs are created and generating state income tax withholding. To receive tax credits, the company must create and maintain 100 percent of its year 1-10 hiring commitment.
        ­ – The total credits are estimated to be worth $1.30 million 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 $2.6 million(2) in personal income, sales, and business corporation taxes resulting from the new hires, as well as an increase of $8.6 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 $19.45 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 Collette, as those income taxes will be offset by the tax credit paid to the company under the Act.

Additional Documentation

Board Resolution Economic Impact Analysis

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