CHRISTIANSTED — Gold Coast Yachts has been awarded a ten-year extension on its tax benefits. After public hearings and “careful review of its application,” the Virgin Islands Economic Development Commission (EDC) and Gov. Kenneth Mapp approved the request to maintain tax breaks for the yacht manufacturer.
Gold Coast Yachts of St. Croix designs and builds commercial sailing and custom catamarans and employs at least 30 Virgin Islanders on a full-time basis. Under the terms of its benefits package, the yacht builders must invest more than $1.2 million in their business over the next five years.
The EDC reports that Gold Coast Yachts provides significant economic benefits to the territory.
“During the initial projected five years of the modification of benefits, 39 jobs will be created and approximately $8.3 million will be paid out in salaries and wages for every $1 million in forgone taxes,” according to the EDC. “Also, the government will receive approximately $1.6 million in tax revenue for every $1 million in unrealized taxes.”
In addition to employment and investment requirements, Gold Coast Yachts is required to provide its workforce with health insurance, life insurance, a retirement plan, tuition reimbursement and profit sharing. The company is also required to provide donations to the Territorial Scholarship Fund and to spend at least $10,000 to provide boat manufacturing and related craft skills training to students and teachers from the U.S. Virgin Islands.
Gold Coast has been awarded 100 percent exemption from property taxes, gross receipt taxes and excise taxes.
They will also receive a 90 percent exemption on income taxes and a partial exemption on taxes dividends and interest.