Putting New Jobs Incentive To Work

by Governor Gina M. Raimondo

This past month has been full of exciting new developments for companies in Rhode Island. We are working hard to make it easier to do business in Rhode Island, encouraging companies to expand and create more high-skill, high-wage jobs.

I want to share the story of one of those businesses with you. Greystone is a manufacturer that was started here in Rhode Island in 1932. They make a variety of machined and plated products, have two locations in Rhode Island and opened a facility in Virginia in 1992. So, when they were thinking about expanding, they started to compare the pros and cons of business climates in Rhode Island and Virginia.

This sounds like a story you’ve heard before, right? The bitter memories of companies uprooting their offices here in favor of more business-friendly states are still fresh in our minds. But this time, the story has a different ending.

After working with the company and talking about their needs, we were able to convince them to expand here. Now 25 good-paying, advanced manufacturing jobs are being created in Rhode Island.

Greystone took advantage of the new Qualified Jobs Incentive. In return for tax credits, the company agreed to hire 25 new full-time employees with an average salary over $50,000, and to keep those jobs here for at least the next 12 years. Greystone will now be able to expand one of its facilities by approximately 10,000 square feet to accommodate new machinery and staff.

This is just one of the early results that shows our economic development tools are working to spark Rhode Island’s comeback. In the last month, these tools have helped three major real estate projects advance, and we’ve awarded 11 innovation vouchers to support partnerships between businesses and universities.

My jobs plan was also created with businesses in mind. Right now, Rhode Island ranks 49th in the nation in unemployment insurance taxes. The proposal would reduce UI taxes without harming benefits, saving businesses approximately $30 million in its first year alone. This will be the first time Rhode Island has moved off of the highest tax bracket since 1992.

The jobs plan also builds on the progress we made during my first year in office. Rhode Island already has the lowest corporate tax rate in New England, and last year we eliminated the commercial tax on energy and reduced the corporate minimum tax. Our state has so much to offer; we can’t give businesses reasons to miss out. Let’s work together to get this done, and let businesses thrive in Rhode Island.

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