Amgen credits tax incentives, quality of life for decision to expand in RI
By Alana Cerrone
WEST GREENWICH, R.I. (WLNE) - According to Commerce Secretary Stefan Pryor, Rhode Island was up against stiff national - and international – competition to be home to Amgen's new expanded plant.
"We were facing competition that quite frankly we believe can under-cut us on price. But we can make it harder for a company to look the other way," says Commerce Secretary Stefan Pryor.
Amgen had options on where to build its $160 million biomanufacturing plant. Realizing what was at stake, the state offered tax credits totaling $3 million. Coupled with the recent federal tax reform, quality of life, and a skilled work-force, Amgen officials decided Rhode Island was a good fit for its expansion plans, another successful example of tax credit deals bearing fruit for the state.
"24 companies have landed or expanded in Rhode Island in about the past 2 years."
Johnson & Johnson, Infosys, and eMoney Advisor are some of the top names.
According to Pryor, they'll bring in close to 80 million in tax revenue over the next 12 years. He calls it a responsible investment, something the state learned the hard way from 38 Studios.
"We wanted to make sure we didn’t make some of the same mistakes of the past putting all our eggs in one basket, an idea that might be great might be terrible, we don’t do that anymore. We will only pay you once you deliver.”
Amgen can get another $1.25 million in tax credits, hinging on the company's performance. Jobs must be created, and employees have to pay income tax first.