Unveiling USVI’s Aggressive Tax Incentives
The U.S. Virgin Islands offers a powerful tax incentive program, which includes a reduction of up to 90% for personal and corporate income taxes, and up to a 100% exemption on excise, business property and gross receipt taxes, among others.
While Puerto Rico was everyone’s “nearshore” darling, the U.S. Virgin Islands had an equally competitive set of incentives to encourage local economic development. The problem was that few people knew about it.
The DCI Strategy
Utilize the Institute of Tax Professionals Credits & Incentives Symposium, which draws the leading corporate tax professionals from major companies around the country, as a forum to reach this massive audience at one time. Concurrently schedule visits with DC-area companies that align with the USVI’s target sectors, with the important distinction that any project could not have massive employment numbers given the territory’s obvious limitations. Also target hotel developers, who could potentially benefit from an aggressive incentive to build on the islands, pending the law’s approval later that year.
- Arranged for the Governor to have a keynote speech at the Credits & Incentives Symposium, as well as a panel role for EDA CEO Percival Clouden.
- Connected the EDA with one of the Top 5 hotels brands in the world by size (and a perennial Fortune 500 company) to discuss development opportunities in USVI.
- An initial corporate meeting was held by phone due to schedule complications, resulting in a subsequent site visit to the U.S. Virgin Islands for a potential 10-50 person call center operation. Negotiations for a potential site and project continue.
- Arranged a total of five additional investment meetings with DC-area companies and consultants, including another meeting with a research and technology company that has resulted in continuing negotiations about a specific site and project in the USVI.