Oxford’s IPG Photonics, a manufacturer of high performance fiber lasers and amplifiers for diverse applications in various markets, recently received $2.18 million in tax credits that will help it expand in the Bay State.
The incentives package lays the foundation for IPG to stay and grow in Massachusetts and continue its role as a high-powered engine of the Massachusetts economy.
The $2.18 million package was identified, negotiated and secured by Medway’s Business Development Strategies (BDS) over the past five months and approved by the Massachusetts Economic Assistance Coordinating Council (EACC) in December. It includes $431,505 in tax increment financing (TIF) and $1.75 million in investment tax credits (ITC). The incentives will be used to offset IPG’s anticipated $18.1 million investment to construct an estimated 101,500 square foot on-site addition to its Central Massachusetts worldwide headquarters.
The nearly $2.2 million government incentives package will also allow IPG to retain 600 permanent full-time jobs and create approximately 175 new net permanent full-time jobs. This expansion is expected to increase IPG’s annual corporate excise, payroll and sales tax payments to the state by more than 50 percent and to expand its spending on products and services from Massachusetts suppliers by 25 percent.
"Engaging BDS to secure government incentives proved to be a valuable strategy for IPG Photonics," said IPG Photonics Vice President, Treasurer and Controller Paolo Sinni. "The leadership style of BDS President Lynn Tokarczyk, combined with her team’s experience and persistence, led to aggressive but achievable goals."
At a time when manufacturers are being consistently wooed by competitors from out-of-state and across the globe, IPG’s decision to expand onsite attests to the value of doing business in Massachusetts. "With manufacturing and sales offices in eight countries and customers around the world, IPG could have expanded anywhere," said Tokarczyk. "The company recognized that Massachusetts continues to offer a pro-business environment with the availability of highly skilled labor, connections to world-class colleges and universities, and efforts to reduce various business costs. When these resources are combined with the substantial government incentives package, IPG realized they could save millions of dollars and continue their record-breaking growth without leaving their Massachusetts headquarters."
State Sen. Richard T. Moore (D-Uxbridge) was instrumental in advocating for the IPG incentives package, according to a statement. He praised the IPG project and BDS’s successful efforts. "I am pleased to have played a small role in helping to encourage state government to assist a great company like IPG Photonics to expand, adding urgently needed jobs and tax revenue for our region," Moore said. "IPG has proven that it is a responsible partner with state and local government in growing a solid economy based on 21st century jobs."
