December 18, 2013
Employers to create 327 new qualifying jobs over five years
The Vermont Economic Progress Council (VEPC) authorized incentives totaling $2.5 million under the Vermont Employment Growth Incentive (VEGI) program in 2013, which will encourage the creation of 327 new, well-paying jobs for Vermonters.
The projects will also create about $19.2 million in new qualifying payroll for Vermonters, and the companies plan to invest $19 million in qualifying capital investments in Vermont between 2013 and 2017. Because of the new jobs and investment, the projects will also generate $3.1 million in net new revenue to the State; revenue that would not be generated otherwise.
“The VEGI program continues to encourage job creation and investment that otherwise would not occur, generating new revenue to the state to support other programs,” said Lawrence Miller, Vermont’s Secretary of Commerce and Community Development.
To be considered “qualifying,” the new jobs must be full-time, permanent, non-owners, and pay more than 160 percent of the Vermont Minimum Wage, and provide benefits. The average compensation for the jobs will be $57,225, well above the state average. The projects will create an estimated 612 total new jobs, when non-qualifying full-time and indirect jobs are counted.
The expansion and recruitment projects will create jobs in several different regions of Vermont and in several different sectors, including specialty foods, high tech manufacturing, machine manufacturing, and web-based marketing services.
2013 VEGI INCENTIVE AUTHORIZATIONS
Freedom Foods, Randolph: $267,762
Biotek Instruments, Winooski: $325,111
Dealer.com, Burlington: $1,201,850
Logic Supply, South Burlington: $352,912
Farmer Mold & Machine Works, North Clarendon: $258,518
JBM Sherman Carmel, Bennington: $136,744
To earn the incentives, authorized companies must meet payroll, employment and capital investment performance requirements each year between 2013 and 2017. If earned, the incentives would pay out to the companies over nine years between 2014 and 2022, only if the new jobs and payroll are maintained.
The Council approved the applications after reviewing nine program guidelines and applying a rigorous cost-benefit analysis that calculates the level of new tax revenue a project will generate for the state. The model estimates that the economic activity approved for these projects will generate $3.1 million in net new tax revenue, even after payment of the incentives. The Council also determined that these projects would not occur or would occur in a significantly different and less desirable manner (the “but for” test) if not for the incentives being authorized.
“We determined that these projects would not have occurred in Vermont or would have occurred in a way that generated far fewer tax dollars,” said Stephan Morse, VEPC Chairman. “Even with this determination, companies are only paid the incentive if they meet and maintain performance requirements. The authorization of these incentives will generate over $9,564 in new tax revenue to the State for each new qualifying job created.”
The Vermont Economic Progress Council is an independent board consisting of nine Vermont citizens appointed by the Governor and two members appointed by the General Assembly that considers applications to the state’s economic incentive programs.
VEPC is attached to the Vermont Agency of Commerce and Community Development, whose mission is to help Vermonters improve their quality of life and build strong communities. For more information, visit: http://accd.vermont.gov/business/start/vegi/.
Media Contact: Fred Kenney, Executive Director, Vermont Economic Progress Council, Agency of Commerce and Community Development, email@example.com, 802-828-5256, 802-777-8192 (cell)
Source: Agency of Commerce and Community Development
Last Updated at: December 18, 2013 13:18:23