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Virgin Islands Economic Development Authority 2022 Spring Revenue Estimating Conference March 2022 The Buccaneer Hotel VIEDC Beneficiary Virgin Islands Economic Development Commission Fiscal Years 2023-2024 Revenue Projections Tramway Properties, Inc. VIEDC Beneficiary The International Economic Development Council (IEDC) defines economic development “as a program, group of policies, or activity that seeks to improve the economic well-being and quality of life for a community, by creating and/or retaining jobs that facilitate growth, enhance wealth and provide a stable tax base.” Business Investment Households Employment Land Capital Entrepreneurship Goods Services Wages Rents Interests Profits WHAT IS ECONOMIC DEVELOPMENT? Alpine Group USVI, LLC VIEDC Beneficiary 10% Income Tax Paid to the Territory Capital Investments Charitable Contributions Employment Wages & Benefits for VI Residents 100% Income Tax on Global Income FACT Tax incentives are intended to spur economic growth that would not have otherwise occurred. The Territory starts at a net zero position BENEFITS TO THE TERRITORY BENEFICIARIES MUST PAY NOTE ON INCOME TAX Effective Tax Rate: 2.3% (based on tax rate of 21% and 10% surcharge) 10% on VIEDC Corporate Income Effective Tax Rate: 3.7% (based on exemption and partial exemption as provided in 29 V.I.C. § 713d on Distributions, Dividends and/or Interest Withholding) 10% on VIEDC Personal Income Full Tax Rate on Global Non-VIEDC Personal Income No tax-incentive/benefits are taken on income derived from services provided in the USVI (Designated Services) Income Tax Payroll Tax Property Tax Franchis e Tax Stamp Tax All other applicable taxes not covered under the grant of incentives must also be paid. Minimum Capital Investment of $100,000 BENEFITS TO THE TERRITORY Purchase Goods and Services Locally from Virgin Islands Businesses LOCAL INVESTMENT BENEFITS TO THE TERRITORY EMPLOYMENT Hire a Minimum of 5 (Financial Services only) or 10 Full-time Employees 80% of Full-time Positions Filled by Virgin Islands Residents Management Training Programs Tuition Reimbursement 20% Management / Supervisory / Technical Positions Filled by Virgin Islands Residents Pension Plan, Medical Insurance and Paid Time Off (Vacation, Sick, Donated, & Other Leave Required by Law) United Electronic Industries Services, LLC VIEDC Beneficiary BENEFITS TO THE TERRITORY STATUTORY REQUIREMENTS & CHARITABLE CONTRIBUTIONS Contribution of $3000 Annually to the Board of Education Contribution of $2500 Annually to the Department of Labor Charitable Contributions Annually to Local Non-profits, 501(c)3 Entities and/or Government Programs Education Assistance, Including Internship Opportunities and Scholarships Alpine Group USVI, LLC VIEDC Beneficiary International Private Bank, LLC VIEDC Beneficiary Fiscal Year Data as of December 31, 2021 HISTORICAL NEW APPLICANT STATISTICS Plessen Healthcare, LLC VIEDC Beneficiary Fiscal Year Data as of December 31, 2021 NEW APPLICANT HISTORICAL DATA Industry Type Full-Time Equivalent Jobs Average: 6,436/year Charitable Contributions Average: $3.23M/year Taxes and Duties Paid Average: $103M/year Wages & Salaries Average: $339M/year Territory-Wide Economic Output Average: $500M/year ECONOMIC IMPACT ANALYSIS Impact of the Beneficiaries of the EDC Program for the Period 2013-2015 19.3 THOUSAND $9.7 MILLION $309 MILLION $1 BILLION $1.5 BILLION Seven Seas Water Corporation (USVI) VIEDC Beneficiary Source: USVIEDA Economic Impact Analysis conducted by UVI's Institute for Leadership & Organizational Effectiveness (2019) TOTAL TAXES & DUTIES PAID 2015-2019 STATISTICS The average annual taxes and duties paid from 2015-2019 was $89.1M. Leatherback Brewing Company, LLC VIEDC Beneficiary This information is subjectto change. FISCAL IMPACT TO THE USVI ECONOMY Total Taxes Paid By VIEDC Beneficiaries Taxes Paid on Global Income by Principals USVI Economy FY 2023-2024 ANTICIPATED REVENUES Year 1 $5M Year 2 $10M www.usvieda.org 340.714.1700 340.773.6499 CONTACT US info@usvieda.org