Founded in 1899 by the financier and noted chess patron Isaac Rice, Electric Boat was established to complete a vessel that would revolutionize naval warfare. Named Holland after its inventor, this 54-foot vessel in 1900 became the first commissioned U.S Navy submarine. Since then, the Holland’s successors have been employed to radically reshape naval warfare and maritime strategy. Electric Boat has developed and maintained a reputation for leadership in a demanding industry that is defined by innovation, technical superiority and the rigorous application of unrelenting quality standards. Today Electric Boat is the design yard and prime contractor for the Virginia class submarine program. The Virginia class is the first major warship completely designed in a virtual environment, a capability pioneered by the people of Electric Boat. Primary operations are the shipyard in Groton, CT, the automated hull-fabrication and outfitting facility in Quonset Point, RI, and engineering building in New London, CT.
Approved Incentive
The Company is requesting incentives with a total value of $20 million, including $2,00,000 in Rebuild Rhode Island tax credits and an exemption from sales and use taxes with an estimated value of $18,000,000.
Explanation
Electric Boat is proposing an approximate $792.1 million long term investment in the construction of facilities, to support construction of the next generation Columbia Class ballistic submarine and the continued production of the Virginia Class attack submarine at Quonset Point. To support this increase in work, Electric Boat must invest in facilities to increase its manufacturing footprint substantially to meet the specific requirements of these programs to deliver these submarines to the U.S. Navy. Discussions with the Company have demonstrated a competitive gap between the Navy’s choice of building the equipment in Quonset or Newport News, Virginia. The state of Virginia has proffered $92 million in incentives to bring a component of the project to that state. The Company is proposing a four phase Project in Rhode Island, adding 1.35 million square feet and creating a peak of 1,300 new Full-Time Employees in the State during a 20-year period.
Economic Impact Analysis 