Qualified Jobs Incentive Tax Credit Award Recipients
Aretec, Inc (“Aretec”, or the “Company”) has been in operation since 2010 and offers enterprise technology services to both federal and commercial entities. The Company, headed by co-founders Roby Luna and Anthony Rivera, provides a wide array of data solutions that help streamline workflow and modernize IT systems. Since 2013, Aretec has placed a larger emphasis on government contract work. Aretec is exclusively located in Fairfax, Virginia due to the high saturation of available talent. Additionally, the company is a certified minority owned federal contractor engaged in a strategic partnership with Solutions by Design, a seasoned cybersecurity firm.
Aretec provides its services to the U.S. federal government through “government-wide acquisition contracts” as well as direct awards. Numerous contracts have been awarded by the following: Securities and Exchange Commission, Department of Defense, United States Postal Service, and the National Guard among others.
- 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 Aretec 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 Aretec hiring 40 full-time employees. The tax credits would not be awarded until jobs are created and generating state income tax withholdings. The Company shall create and maintain 100% of the New Full-Time Job Requirement for the first through third Taxable Years. During the remainder of the Commitment Period, the Company shall remain eligible for Tax Credits so long as it maintains 80% or 32 of the New Full-Time Job Requirement, provided that the Company has created and maintained at least 40 New Full-Time Jobs in a previous Taxable Year.
- The total credits are estimated to be worth $800,000 over the 10-year period. The actual tax credit amount will be determined by the number and wages of the new jobs created.
Aretec is proposing to expand in Rhode Island by creating at least 40 new full-time jobs for which it would receive tax credits. The new employees will be comprised of Proposal Writers and Data Scientists with an anticipated median annual salary of $68,700 for jobs qualifying for Qualified Jobs Incentive Tax Credits. Aretec expects to hire these new employees by 2022.
Based on a third-party analysis, over the twelve-year period, Rhode Island is projected to realize a net increase of $2.3 million in personal income, sales, and business corporation taxes resulting from the new hires, as well as an increase of $6.35 million in Rhode Island’s annual GDP once the new hires are in place.