The state will give Bank of America a $2 million sales tax break in exchange for the bank’s $59.5 million investment in three call centers in Rhode Island and the promise of hiring 955 full-time employees.
The Rhode Island Economic Development Corporation board of directors last week approved a waiver of the state’s 7 percent sales tax on $29 million of construction materials and capital equipment the bank is purchasing for three facilities in East Providence, Lincoln and Providence that it will expand and renovate.
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“This is a continuation of the growth and commitment of Bank of America within Rhode Island,” said Michael McMahon, executive director of the EDC. “This announcement also showcases how public-private partnerships are working to achieve new economic development opportunities and synergies impacting the entire state. There is no doubt that Bank of America is taking note of our employee base as well as the state’s commitment in assisting them in these growth efforts.”
The largest project, the opening of a call center in the old Monet jewelry manufacturing facility at 3400 Pawtucket Ave. in East Providence, will undergo $58.5 million in renovations and expansion. The bank is expected to move into the site, which will have up to 900 employees, this summer.
The facility, a one-level 140,000-square-foot site on 11.25 acres, has been vacant for five years but is in good condition, according to city officials.
Bank of America also plans to add about 100 positions at its Banc of America Investment Services center at 670 George Washington Highway in Lincoln. This facility and another operations and processing center on Dupont Drive in Providence will spend approximately $1 million on equipment like computers and office furniture.
The bank expects to hire all of the new employees – 1,092 positions in total – and finish construction on the East Providence call center in one year, according to Jean Burritt Robertson, senior director of policy and research for the EDC.
In return for the tax break, Bank of America said it will increase its Rhode Island payroll by more than $27.2 million in the next year, which will result in new income tax revenue in the next three years of approximately $3.2 million. According to Robertson, $1.58 million would come from construction payroll and about $1.67 million from permanent jobs, according to the EDC’s economic impact analysis.
All the revenue from jobs created from the expansion and construction is new revenue to the state, the analysis states.
The jobs created by Bank of America will pay between $23,000 and $85,000 a year, according to the EDC. The majority of the jobs, 695 of them, will be $23,000-a-year positions, where workers will answer incoming customer calls.
