Johnson & Johnson
Johnson & Johnson Services, Inc. (J&J) is a multinational consumer healthcare, pharmaceutical and medical technology company with annual revenues of roughly $70 billion and approximately 128,000 employees in 250 operating companies worldwide. Inspired by the sanitation movement of the late 19th century, J&J released surgical dressings as its first product line in 1885. After incorporating in 1886, J&J expanded to consumer products, common over-the-counter treatments like Tylenol, and, eventually, prescription pharmaceuticals. In more recent years, the company has invested heavily in biotechnology and medical device products. The company’s medical device division now represents the world’s largest medical technology company. J&J is creating new health technology centers to focus on developing software applications to improve health outcomes and product performance.
J&J is proposing to locate its third Health Technology Center in Providence. Since J&J does not have an existing presence in Rhode Island, it is costlier to locate an office in Providence than to collocate this office with an existing location. J&J is expected to employ 75 people in its Providence location in new, full-time, technology jobs. The Providence office will be staffed by a range of professionals, including software developers, data scientists, software quality and testing engineers, and associated management positions, with an estimated median annual salary of $137,000. J&J plans to have its full team in place by 2018. In total, the Commerce Corporation is awarding the company an incentive package consisting of tax credits under the Qualified Jobs Incentive Tax Credit Program and up to a $250,000 grant from the First Wave Closing Fund.
The Commerce Corporation is recommending a total incentive package consisting of Qualified Jobs Tax Credits and a grant allocation from the First Wave Closing Fund.
- The recommended term of the tax incentive agreement is 10 years, and J&J has indicated that it will commit to maintaining the new jobs in Rhode Island for at least the 12 years required.
- The total credits are anticipated to be approximately $4.4 million based on the projected hiring of 75 employees.
- The company is eligible for a $250,000 grant from the First Wave Closing Fund. This grant can fund student loan debt relief to support Johnson & Johnson’s talent attraction efforts for the Providence office.
- An allocation of up to $1 million from the I-195 Redevelopment Commission was approved in December 2016 and will support the leasehold improvements for J&J’s new office at One Ship Street in Providence.
- In addition, J&J may apply for the Rhode Island Department of Labor and Training’s recruitment, training and workforce development services, which have the potential to be valued at up to $6,000 per employee.
- Based on a third-party analysis, over the 12-year period, Rhode Island is projected to realize a net increase of over $6.1 million in personal income, sales, and business corporation taxes resulting from 75 new hires, as well as an increase of $19.3 million in Rhode Island’s annual GDP starting in 2019 attributed to J&J’s ongoing operations.
Economic Impact Analysis
One Ship Street Resolution
PBN: “Commerce RI approves $12.7M in incentives for three Prov. projects”