Alexion Pharmaceuticals has brought 194 jobs to RI, invested more than $150 million at Smithfield manufacturing facility since 2006
RIEDC Chairperson Governor Lincoln D. Chafee and the Rhode Island Economic Development Corporation (RIEDC) Board of Directors today approved a measure to lower the corporate income tax rate for Alexion Pharmaceuticals, Inc., based on the company's addition of jobs in Rhode Island, under the state's Jobs Development Act (JDA). The tax benefit puts Rhode Island in a competitive position as Alexion considers its future growth plans.
"My administration is committed to using the state's economic development tools to support existing Rhode Island businesses and help them grow and create jobs," Governor Chafee said. "By encouraging employment growth through targeted tax programs for proven companies, such as Alexion, we can help businesses to continue to invest in quality jobs in the state and better compete for new economic opportunities in the New England market."
"We are thankful that Alexion is now able to receive the same income tax benefit available to other companies driving job growth. This is a positive step to making Rhode Island competitive with neighboring states," said Irving Adler, Executive Director of Corporate Communication of Alexion. "We look forward to working with Governor Chafee on initiatives that continue to make Rhode Island even more attractive to innovative companies committed to employment and development here in the state."
Alexion, a global biopharmaceuticals company, employs 194 people in Rhode Island today with high-paying jobs in an expanding bioscience industry. Since the company purchased their biopharmaceutical manufacturing facility in Smithfield, R.I. in 2006, the company has invested more than $150 million in renovations and retrofitting to bring the plant up to global, state-of-the-art standards for manufacturing and quality.
Alexion grew from 13 full-time employees in Rhode Island in 2006 to 113 in 2009 with a median annual salary of $75,000. With 92 of those 100 new jobs meeting the JDA qualifying requirements within a three-year period, the company became eligible for a corporate income tax rate reduction.
Alexion paid the minimum corporate tax payment of $500 for tax years 2007, 2008, and 2009. Tax payments cannot decline from this level by qualifying for a corporate tax rate reduction under the JDA. It is estimated that job growth at Alexion between 2006 and 2009 resulted in $258,000 in new state personal income tax revenue. The RIEDC's economic impact analysis finds that Alexion's corporate tax rate reduction has a positive net fiscal impact for the state.