Board approves amendment to Flux Marine hiring schedule but limits credits to future years

The Rhode Island Commerce Corporation board on a voice vote approved a staff recommendation to amend Flux Marine Ltd's hiring schedule tied to tax credits under the qualified job incentive act, but the board limited the change so it applies only prospectively beginning in 2025. A committee member explained the board's concern that retroactive adjustments would award tax credits for goals the company had not met.

A board investment committee member summarized the concern over retroactive crediting, saying: "retroactively saying, oh, you missed it. That's okay. We'll still give you the, you know, $100,000 tax credit. That didn't sit right with us." Staff described that Flux Marine had been approved in 2022, relocated to Bristol, and grew from six employees in 2022 but missed a second-year hiring benchmark (hiring 14 instead of the contracted 20). Staff said Division of Taxation recalculated hires after excluding short-tenure and part-time positions, producing an effective count of 14 for 2024.

Board members discussed fiscal impact and incentives math: staff noted the proposed amendment reduces the incentive pool by roughly $3.5 million compared with the original schedule. One board member asked whether the private investment supporting Flux Marine's operations came from in-state sources; presenters said the majority of private capital was from outside the state. The motion to approve the prospective-only amendment was moved by a committee member, seconded on the floor, and approved without recorded opposition.

The action applies the revised hiring and credit schedule starting in 2025; the board did not authorize retroactive credits for prior years. The board directed staff to continue monitoring job growth and to report back as the company meets future milestones.