Qualified Jobs Incentive Tax Credit Award Recipients
Alliance Paper Company Inc. (“Alliance Paper”), is a Fall River, MA-based manufacturer of paper tissue and towel products for the institutional market place. Founded in 2002, Alliance Paper now has approximately 22 employees. The Company is also in the process of expanding its business to folded towels and napkins as well as some consumer roll goods. Alliance Paper has 0 current employees in Rhode Island.
Alliance Paper is proposing to relocate to Rhode Island by creating at least 20 new full-time jobs for which it would receive tax credits. The new jobs are projected to be filled by a range of operators, mechanics, packers, cleaners, management and supporting staff professionals, with an anticipated median salary of $33,280 for jobs qualifying for Qualified Jobs Incentive Tax Credits. Alliance Paper expects to hire these new employees by 2018. 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 $19.10 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 is recommending awarding Qualified Jobs Incentive Tax Credits to the Company.
- The recommended term of the tax incentive agreement is ten years, and Alliance Paper 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 Alliance Paper hiring 20 full-time employees by 2018. 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 year 1-10 hiring commitment.
- The total credits are estimated to be worth $296,794 over the 10-year period. The actual tax credit amount will be determined by the number and wages of the new jobs created. Alliance Paper would also be eligible for additional tax credits up to 30 jobs.
- Based on a third-party analysis, over the twelve-year period, Rhode Island is projected to realize a net increase of $675,206 in personal income, sales, and business corporation taxes resulting from the new hires, as well as an increase of $1.85 million in Rhode Island’s annual GDP once the new hires are in place.