By Patrick Anderson
PBN Staff Writer
PROVIDENCE - The R.I. Economic Development Corporation approved a corporate tax cut Monday night for Alexion Pharmaceuticals under the state’s Jobs Development Act.
The tax incentive will cut Alexion’s corporate tax rate in Rhode Island from 9 percent to 6.75 percent.
Based in Connecticut, Alexion bought its plant in Smithfield in 2006 and expanded it from 13 employees to 113 by 2009. Of those employees 92 earned at least 250 percent of the state’s minimum wage during the period, qualifying the company for the tax cut.
The drug maker now employs 194 people in Rhode Island.
How much the state will lose in revenue from granting the tax incentive depends on how profitable Alexion becomes.
The company paid the minimum corporate tax of $500 between 2007 and 2009, the period for which it applied for the tax incentive. No details of how much it pays now were released.
The Jobs Development Act is the most expensive business tax incentive in Rhode Island, resulting in $16.4 million in lost revenue in fiscal 2012 to eight companies. Of that total CVS Caremark received $15.4 million.