Saturday, September 20, 2014
Inquirer Daily News

Delaware incentives for Incyte amount to $18,000 per job

State officials and the biopharmaceutical company agreed on a target of 560 jobs in Delaware by the end of 2018 in exchange for $10.1 million.

Delaware incentives for Incyte amount to $18,000 per job

One factoid that didn't make it into my column in Wednesday's newspaper on state subsidies to corporations, which focused on Delaware's $11.1 million incentive package to retain Incyte Corp., was the cost per job.

First, Delaware officials calculated the amount of state personal income tax the state would receive from a workforce of 560 from now until the end of 2018. That figure of $10,070,505 is the amount of the grant that Incyte received in exchange for creating 266 jobs.

To calculate what that works out per job, Delaware divided that dollar amount by 560 jobs, producing $17,983 per job. Why not the 266 jobs created, which would be $37,859? Because the deal calls for Incyte to have 560 employees in Delaware as of Dec. 31, 2018. If it does not, then there is a clawback provision that requires to company to pay back the state for every job under that level. That would be $17,983 per job.

Also, a clarification: I cited figures on other Delaware deals from an interactive database on the New York Times website. However, Delaware Economic Development Office director Alan Levin points out that the state provided Fisker Automotive Inc. with grants and loans totalling $21.5 million, not $30.5 million as appears in the New York Times database.

Here is a link to the minutes from the 2010 meeting where Delaware officials approved the Fisker package.

Also, here is a link to the Delaware page on the New York Times' website that lists recent transactions.

Mike Armstrong Inquirer Columnist
About this blog
Mike Armstrong blogs about Philadelphia corporations and business-related topics. Contact him at 215-854-2980. Reach Mike at marmstrong@phillynews.com.

Mike Armstrong Inquirer Columnist
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