Tax Incentives Awarded and Revoked in Recent EDC Board Meeting

In a meeting that resumed on Tuesday after a brief recess since January 24, the V.I. Economic Development Commission (EDC) Board made several pivotal decisions concerning applications and compliance related to tax incentives.

340 Worldwide LLP, a prominent service provider based on St. Thomas, has successfully amended its incentive agreement to introduce a tuition reimbursement program for its workforce. This initiative supports employees pursuing associate or bachelor’s degrees relevant to their job roles or certification courses that enhance workplace efficiency and proficiency.

Harborside Corporation, renowned for its operation of the Bolongo Bay Beach Resort, received the board’s nod for enlarging its tax incentive certificate to include 15 additional units, further elevating its resort capacity.

Lovango Island Holdings LLP was granted approval for its request to retroactively initiate tax incentives alongside a procurement waiver. It has been permitted a lower employment threshold, necessitating the hire of 10 full-time residents over three years, with a peak season employment goal of at least 70 full-time positions by the fifth year. This adjustment comes as Lovango faces unique challenges in securing goods and services, prompting the EDC board to reassign the commencement of Lovango’s tax incentives to January 1, 2023, with the procurement waiver effective until January 31, 2024.

During the incentive period, Lovango is required to ensure that 60% of its workforce comprises Virgin Islands residents, a reduction from the usual 80% mandate. This ratio is subject to review upon the conclusion of the initial 10-year incentive term.

YHG Hotel, LLC, amidst proceedings for an impending sale, secured an extension for its tax incentive commencement to December 31, 2024, marking its fourth deferment.

PL Partners LLP and Sail Rock Investment LLC, both service-oriented entities, have been awarded 20 years of tax incentives. Sail Rock, managing Standard Aviation and currently developing a Hampton by Hilton in Havensight, has also been granted a waiver for the 80% residency hiring requirement, obligating them to contribute to the Territorial Scholarship Fund for each non-resident employed beyond the permitted threshold.

United Investors, operating as Concrete Masters LLC, will benefit from 30 years of tax incentives for establishing a ready-mix concrete plant in Christiansted, though the incentives are exclusively applicable to revenues from the manufacturing and sale of concrete.

Tax incentives were also approved for VI Electron LLC, aimed at developing solar farms with a significant investment, and West Indies Petroleum USVI Limited LLC, for oil bunkering services, with respective incentive durations of 30 and 20 years.

On the compliance front, Fintrac Inc. opted for a voluntary termination of its tax benefits following violations related to leave policies and local payroll account requirements, with the board waiving associated penalties.

Secret Harbour Beach Associates addressed compliance findings effectively, though the board noted legal constraints in levying fines for violations occurring within specific review periods.

This session underscored the EDC’s commitment to fostering economic growth and employment in the Virgin Islands through judicious management of tax incentives, processing seven new applications alongside addressing compliance issues.