PROVIDENCE – The health management company Magellan Health, Inc. is planning to expand its workforce in Rhode Island, and has requested state job creation incentives.
A committee of the R.I. Commerce Corp. on Wednesday recommended approval of tax credit incentives under the Qualified Jobs Incentive program, of up to $2.1 million, according to Commerce Secretary Stefan Pryor.
If authorized by the Commerce R.I. board on Tuesday, the incentives would be paid out over a 10-year span, based on the number of jobs actually created.
The company, which already has 86 employees in Newport, has said it may create as many as 100 new positions, Pryor said.
In a telephone interview after Commerce R.I.’s investment committee meeting, Pryor said the positions would be created over a three-year span, and would have to be retained for 12 years for the company to retain the incentives.
The project would be the state’s 18th application of Qualified Jobs tax credits to date, he said. An economic analysis prepared for the Commerce committee determined the taxes collected from the new positions would be more than double the amount of taxes credited under the incentive, he said.
Magellan Health, based in Scottsdale, Ariz., is a publicly traded company that has about 9,700 employees in the U.S.
About 75 of the proposed jobs would be eligible for the tax credits in Rhode Island, Pryor said.
To be eligible for Qualified Jobs incentives, companies have to create positions that pay a salary above the state’s median, or create jobs in state-targeted industries, including advanced manufacturing.
The timeline for the new jobs would be early 2018.
Mary MacDonald is a staff writer for the PBN. Contact her at macdonald@PBN.com. Follow her on Twitter @MaryF_MacDonald.