Lexington Lighting Group, LLC (“Lexington Lighting”) consists of two divisions: Vantage Lighting and Wilshire Manufacturing. Both divisions use state-of-the-art technology to create light-emitting diode (“LED”) efficient lighting. In recent years, LED technology has begun to supplant traditional incandescent bulbs because of the technology’s longer lifespan and electrical efficiency. Lexington Lighting engages in the mechanical and electrical engineering processes required to develop even more high-performance and cost-effective LED lighting fixtures.
Lexington Lighting is proposing to move its 20 existing full-time employees to a 23,000 square foot facility in East Providence that will accommodate the company’s ongoing operations. The Company then plans to add four fulltime employees by 2021, for a total of 24. The Corporation is recommending awarding the Company an estimated $219,225 in tax credits under the Qualified Jobs Incentive Tax Credit Program.
Lexington Lighting is contemplating relocating its current operations from Taunton, Massachusetts to a building in East Providence.
The Company estimates moving costs and ongoing operational expenditures associated with the proposed Rhode Island facility to be costlier than remaining in Massachusetts.
In response, the Corporation has negotiated Qualified Jobs Incentive Tax Credits to the Company valued at approximately $219,225 for the 24 new cumulative jobs.
The recommended term of the tax incentive agreement is five years, and Lexington Lighting has indicated that it will commit to maintaining the new jobs in Rhode Island for at least the six years required.
Subject to the award of this incentive package from Rhode Island, Lexington Lighting has agreed to relocate to Rhode Island, rather than remain in Massachusetts.
Based on a third-party analysis, over the six-year period, Rhode Island is projected to realize a net increase1 of $0.4 million in personal income, sales, and business corporation tax revenues resulting from the new 24 hires, as well as an increase of $2.7 million in Rhode Island’s annual GDP once all of the new employees are in place.