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December 21, 2015

VEPC Authorizes $4.3 Million in Job Creation Incentives for Nine Companies in 2015

Employers to Create 332 New Full-Time Jobs Over Five Years

During calendar 2015, the Vermont Economic Progress Council (VEPC) authorized job creation incentives totaling $4.3 million under the Vermont Employment Growth Incentive (VEGI) program, which will encourage the creation of 332 new, well-paying jobs for Vermonters, with an average compensation of $48,250.

2015 VEGI INCENTIVE AUTHORIZATIONS

Company, Location, Amount

Cabot Hosiery Mills, Inc., Northfield, $1,336,191

Flex-A-Seal, Inc., Essex Jct, $144,998

National Hanger Company, Inc., N. Bennington, $272,369

Precyse Solutions LLC, Statewide, $378,703

Revision Military, LTD, Essex, $167,295

Vermed (Graphic Controls), Bellows Falls, $292,421

Maponics, White River Jct, $156,490

Revision Ballistics, LTD, Newport, $619,007

GW Plastics, Inc., Bethel, $977,365

Total: $4,344,838

These projects will also create about $13.5 million in new, full-time payroll for Vermonters, and the companies plan to invest $47.7 million in facilities and machinery and equipment in Vermont between 2015 and 2019.

"This is why VEGI wins national awards," Gov. Peter Shumlin said. "The race among states to lure jobs from one another often leads to wasteful spending. Vermont, through the VEGI program, takes a smarter approach that uses funds wisely to create real jobs. And we do it in a way that returns to the state in tax revenue more than is paid out in incentives. It's a win for job creation. It's a win for Vermont business. And it's a win for the state as a whole."

Each of these companies is growing it's business in Vermont because of the incentives that will be earned during the five-year period. Each company will create new full-time jobs for Vermonters.

"The VEGI incentive program continues to ensure Vermont's businesses remain in Vermont and draws new growth as companies seek out Vermont's innovative economy," said Patricia Moulton, Secretary of the Agency of Commerce and Community Development.

Cabot Hosiery Mills, Inc. in Northfield will expand their operations to meet the demand created by their premium sock brand, Darn Tough Vermont. As part of that expansion, the northeast's only sock manufacturer has added more than 80 new knitting machines and has brought on more than 115 new employees. They've also implemented a robust apprenticeship program to provide growth opportunities for its workforce while providing the training required to operate the company's state of the art manufacturing machinery. "With the incentive approval we can invest now to meet and get out ahead of customer demand," said company President Ric Cabot. "The Vermont Enhanced Training Incentive approved for Cabot will allow us to roll out a phased expansion that should set us up well for 2016 and beyond." Cabot was the first company approved for the Vermont Enhanced Training Incentive. Passed by the General Assembly, the incentive combines VEGI incentives and Vermont Training Program grants to allow companies to accelerate training for Vermonters filling newly created jobs.

Precyse is a provider of health information management (HIM) services, technology and education that ensure the accuracy, speed, compliance, access and application of meaningful clinical data to drive improved care and financial outcomes. Precyse is developing a workforce of certified medical coders who will work at home throughout the state, and earn a great wage with flexible hours. "The Precyse team is excited to collaborate again with the State of Vermont and offer this program," said Chris Powell, CEO, Precyse. "The economic growth incentives and funding offered by the state are strong motivators to train and hire willing individuals who provide skilled services to the healthcare community. This partnership enhances our medical coding resources to support the healthcare community, and offers Vermont residents meaningful careers."

GW Plastics, Inc. in Bethel is a plastic and silicone injection molding, assembly, and mold making company which is expanding their Vermont operations to accommodate their growing medical device business. "The Vermont Employment Growth Incentive program serves as an example of how collaboration between the private and public sectors, can lead to extraordinary outcomes for Vermonters," said Brenan Riehl, president and CEO.

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 will the incentive earned each year pay out to the company in five installments.

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 $1.7 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.

Media Contact: Fred Kenney, Executive Director, Vermont Economic Progress Council, Agency of Commerce and Community Development, fred.kenney@vermont.gov, 802-777-8192 (cell)

Source: Agency of Commerce and Community Development
Last Updated at: December 21, 2015 16:26:23