Boca Raton Authorizes Potential Tax Credit to Lure Tech Firm’s Relocation

BRIC / Boca Raton Innovation Campus. (Photo: Boca Daily News)

Boca Raton officials this week voted unanimously to endorse the future authorization of $500,000 in incentives to lure an unnamed quantum computing firm from California to the city.

Known as “Project Vernon” to mask the identity of the company, the plan calls for the city funding to be provided in addition to as much as $6.5 million in state tax credits. Officials have said the company’s relocation would result in the creation of 100 new jobs over the next five years in the city. The average annual salary for the jobs created by Project Vernon “shall not fall below $125,000 during the retention period,” in order for the company to qualify, the resolution said.

“It is a tax credit, and we do get state money at a 12 to 1 ratio,” City Manager Mark Sohaney said before a vote on the measure.

The mystery company has been described as a publicly-traded quantum computing firm that is currently located in California and has been considering relocating its headquarters to Florida, Tennessee or North Carolina. A combination of rumors and deductive reasoning have led some to speculate on which firm would meet the criteria, though it has not been announced and remains confidential. At least one quantum computing firm is hosting an annual conference at The Boca Raton resort later this month, fueling additional speculation, but ultimately demonstrating the attractiveness of the city for tech companies to build on the history of IBM’s decision to develop a major presence in 1967 at what is known today as the Boca Raton Innovation Campus. The conference will feature speakers from numerous quantum, defense and finance companies.

The move to authorize the incentive was approved unanimously by the city council, however some residents said they believe more scrutiny should have been included in the language of the resolution. One speaker said the average salary requirement should apply to individual positions, so the large salary of a C-Suite executive would not be able to raise the average salary across a large number of positions.

The council ultimately approved the resolution as proposed by city staff.

“This action tonight is not granting an agreement,” said City Attorney Joshua Koehler. “The council will approve it tonight, and then at a future point, they will make an announcement, and it will come back to the council.”