The Vermont Economic Progress Council (VEPC) authorized incentives totaling $3.8 million under the Vermont Employment Growth Incentive (VEGI) program, which will encourage the creation of 557 new, well-paying jobs for Vermonters, with an average compensation of $50,385. These projects will also create about $21.4 million in new full-time payroll for Vermonters, and the companies plan to invest $37.7 million in qualifying capital investments in Vermont between 2014 and 2019.
“The VEGI program continues to encourage the creation of good paying jobs and investment in Vermont that otherwise would not occur, generating new revenue to the state to support other programs,” said Patricia Moulton, Vermont’s Secretary of Commerce and Community Development. “It is exciting to see this much investment activity by Vermont businesses.”
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2014 VEGI INCENTIVE AUTHORIZATIONS Company Location Amount Vermont Packinghouse, LLC Springfield $233,252 Twincraft, Inc. Winooski $532,584 G.S. Blodgett Corporation Essex $754,104 Cabot Hosiery Mills, Inc. Northfield $1,505,192 Flex-A-Seal, Inc. Essex $188,858 National Hanger Company Bennington $227,668 Precyse Solutions, LLC Statewide $349,742 Total: $3,791,400 |
Three of the companies received final authorization of incentives for projects that started in 2014 and will continue through 2018. These included the establishment of a slaughterhouse in Springfield by Vermont Packinghouse, LLC to service Vermont’s diversifying agricultural market, the expansion of Twincraft into the liquid soap market, and the expansion of Blodgett Ovens to accommodate the acquisition of the Market Forge Brand.
Four of the companies received initial approval of projects that start in 2015. These included an expansion of Cabot Hosiery Mills in Northfield to accommodate growth of the Darn Tough Vermont brand, expansion of Flex-A-Seal in Essex Junction and National Hanger Company in North Bennington, and the introduction of work-at-home medical coding jobs statewide by Precyse.
“Our team is excited to partner with the State of Vermont and Vermont HITEC on this initiative to bring living-wage jobs to Vermonters,” said Chris Powell, CEO, Precyse. “This partnership will help us to enhance our medical coding services for the healthcare industry while providing Vermont residents exciting and rewarding careers.”
“The VEGI incentive will assist us in establishing a Retail Division for small and mid-level retailers,” stated Michele Pilcher, President of National Hanger Company.“Our goal of being “The Retail Source” can now be achieved in North Bennington, site of our current operations. We are so happy to be able to spend all our focus on expansion here in Vermont, rather than having to relocate.”
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 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. Therefore, the projects generate new state tax revenues that would not have been realized. Those revenues pay the incentives and will generate $1.943 million in net new tax revenue, even after payment of the incentives.
To earn the incentives, authorized companies must meet payroll, employment and capital investment performance requirements each year. Only if the Tax Department determines that the performance requirements are met and maintained, the incentive earned pays out to the company in five annual installments.
Source: VEPC. 1.5.2015. 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/.