GEV Wind Energy - Rhode Island Commerce

The Company

GEV Wind Power US, LLC  is one of the largest wind turbine maintenance companies in the world and has a current customer base that includes both offshore and terrestrial wind turbines.  In the U.S., the Company has only land-based operations that have a concentration in the wind alleys of the midwest, southwest, and north central areas of the country.  The Company is currently operating out of Austin, Texas to be proximate to its existing client base, and its parent Company, GEV Group is based out of the UK where wind power has been a staple green energy for more than 20 years.  Having a trained and experienced technical team in the UK provides GEV a competitive advantage in the U.S., but adds significant expense to the Company’s operations.  Due to the lack of trained U.S.-based expertise (given the ascending offshore wind sectors relative in the U.S.), most of GEV’s technicians come to the U.S. from the UK to provide blade repair services. To further expand its business, GEV is approved incentives to create a U.S. wind-power training facility in Rhode Island to fill the gap in its trained turbine workforce. 

GEV Group, founded in 2008 is one of the UK’s leading specialist engineering and access companies operating in the energy sector with business interests ranging from wind turbine maintenance to subsea well control equipment maintenance. A market leader in the provision of field-deployed wind turbine blade technicians; GEV Group is also a leader in Oil & Gas service provider.

Approved Incentive

GEV is approved incentives to expand in Rhode Island by creating at least 123 new full-time jobs for which it would receive tax credits.  The new employees will be comprised of blade technicians, supporting staff and management with an anticipated median annual salary of $45,000 for jobs qualifying for Qualified Jobs Incentive Tax Credits.  GEV expects to hire these new employees by 2022 – 2023.

Explanation

The Commerce Corporation has approved incentives under the Qualified Jobs Incentive Tax Credits to the Company.

  • The recommended term of the tax incentive agreement is ten years, and GEV 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 GEV hiring 123 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 98 of the New Full-Time Job Requirement, provided that the Company has created and maintained at least 123 New Full-Time Jobs in a previous Taxable Year.
  • The total credits are estimated to be worth $1.93 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 $3.5 million[1] in personal income, sales, and business corporation taxes resulting from the new hires, as well as an increase of $13.67 million in Rhode Island’s annual GDP once the new hires are in place.

    [1] This does not include the value of the state income taxes generated over 10 years by the new incentivized jobs created by GEV, as those income taxes will be offset by the tax credit paid to the company under the Act.

Additional Documentation

Economic Impact Analysis
Board Resolution

Media Coverage

Associated Press: UK-based wind company picks Rhode Island for US headquarters
Providence Journal: British company that services wind turbines wants to anchor U.S. operations to R.I.
American Inno: GEV Wind Power to Establish U.S. Headquarters in Rhody

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