Rebuild Rhode Island Tax Credit Recipients
Custom & Miller Box
Custom & Miller Box is a wholly owned subsidiary of Key Container Corporation (“Key Container”) and is located in East Providence, RI. Key Container, who commenced operations in Pawtucket in 1959, established Custom Corrugated in 1996 and then acquired Miller Box in 2008, merging the two to create Custom & Miller Box. Like Key Container, Custom & Miller Box is a manufacturing/corrugated converting facility. Key Container Corporation and Custom & Miller Box both convert paper into corrugated then converts the corrugated board into boxes, die cuts, displays, and many more. The Company maintains close relationships with an array of successful manufacturers, including Hasbro, American Tourister, American Insulated Wire, Carol Cable and School House Candy, among others.
Job Creation Opportunity
Custom & Miller Box is proposing to consolidate its RI operations and expand in an existing building in Pawtucket, Rhode Island by creating an additional 42 new full-time jobs for which it would receive tax credits. The new jobs are projected to be filled by a range of sales, design, and production staff, with an anticipated median salary of $30,000 for jobs qualifying for Qualified Jobs Incentive Tax Credits. Custom & Miller Box expects to start hiring these new employees by 2020. In order for a job to be eligible for incentives under the Qualified Jobs Incentive Tax Credit Program, it must earn at least the Rhode Island Median Wage which is currently $19.45 per hour. Because manufacturing is considered an Economically Fragile Industry, the Corporation shall grant a reduction in the qualifying wage threshold below Rhode Island’s current Area Median Income.
The Commerce Corporation has awarded Qualified Jobs Incentive Tax Credits to the Companyy. The recommended term of the tax incentive agreement is ten years, and Custom & Miller Box has indicated that it will commit to maintaining the new jobs in Rhode Island for at least the twelve years as required. The tax credits are predicated on Custom & Miller Box hiring 42 new full-time employees by 2022. The tax credits would not be awarded until jobs are created and generating state income tax withholdings. To receive tax credits, the company must create and maintain 100 percent of its hiring commitment for the first through third Taxable Years; the new full-time job requirement shall then be reduced to 80 percent for the fourth through the tenth Taxable Years, provided that the Company has created and maintained at least 42 new full-time jobs in a previous Taxable Year. The total credits are estimated to be worth $612,000 over the 10-year period. The actual tax credit amount will be determined by the number and wages of the new jobs created.
Based on a third-party analysis, over the twelve-year period, Rhode Island is projected to realize a net increase of $1.7 million in personal income, sales, and business corporation taxes resulting from the new hires, as well as an increase of $5.1 million in Rhode Island’s annual GDP once the new hires are in place. This does not include the value of the state income taxes generated over 10 years by the new incentivized jobs created by Custom & Miller Box, as those income taxes will be offset by the tax credit paid to the company under the Act.