Qualified Jobs Incentive Tax Credit Award Recipients
SenTec, Inc (“SenTec”) has been in operation since 2016 as a subsidiary of privately held SenTec, AG which was founded in 1999. The Swiss parent Company is a medical device manufacturer with a specialization in the non-invasive patient monitoring industry. Their products mainly focus on real-time monitoring of patient ventilation and oxygenation by utilizing their proprietary V-Spec™ technology. These products service a wide range of medical applications including Pulmonology, General Anesthesia, ER, and Neonatal Intensive Care. Additionally, SenTec products are used by the top ten neonatology centers in the United States.
The research and development of SenTec’s products are based out of the Swiss and German offices. The US based subsidiary is responsible for promoting sales and servicing a national repair and maintenance facility for SenTec products. The Company is also discussing the possibility of expanding its R&D and manufacturing capabilities within the US. It is also worth mentioning the parent company, SenTec AG, underwent a merger in 2018 to acquire Swisstorm which also holds a portfolio of products within the non-invasive patient monitoring industry. This highlights SenTec’s commitment to remaining an industry leader.
- The Commerce Corporation awarded Qualified Jobs Incentive Tax Credits to the Company.
- The recommended term of the tax incentive agreement is ten years, and SenTec 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 SenTec hiring 17 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 throughout the twelve-year Commitment Period.
- The total credits are estimated to be worth $518,250 over the 10-year period. The actual tax credit amount will be determined by the number and wages of the new jobs created.
SenTec is proposing to move its headquarters from its existing facility in Fenton, Missouri to Lincoln, Rhode Island and will create at least 17 new full-time jobs for which it would receive tax credits. The new employees will be comprised of Operations Managers, Sales and Service Technicians and Back Office Staff Members with an anticipated median annual salary of $100,000 for jobs qualifying for Qualified Jobs Incentive Tax Credits. SenTec 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 $1.4 million in personal income, sales, and business corporation taxes resulting from the new hires, as well as an increase of $4.82 million in Rhode Island’s annual GDP once the new hires are in place.