The Utah Governor’s Office of Economic Development (GOED) announced today that in 2019, 20 companies participated in the state’s Economic Development Tax Increment Financing (EDTIF) tax credit program. Participating companies are projected to create 9,643 high-paying jobs across a variety of sectors, generate $306,196,993 in new state revenue and fund $602,963,462 in Utah capital investment during the next 15 years. If they achieve the goals identified in their contracts with the state, the 20 companies will receive a total of $69,825,133 in tax credits.
The EDTIF is a post-performance tax credit of up to 30% of new state revenues (Utah sales, corporate and withholding taxes) during a defined period (typically 5 to 10 years). The tax credit is available to Utah companies expanding and other companies relocating or establishing additional operations in Utah. Since its inception, approximately two-thirds of the program’s tax credits have gone to Utah-based companies to help them expand and create more jobs for Utahns.
Created by the Utah Legislature and administered by GOED, the EDTIF program is for companies offering high-wage jobs — paying at least 110% of the average county wage. By design, the program has a ripple effect, creating additional jobs that support corporate expansion across Utah’s economy.
“Utah’s current unemployment rate is 2.5%,” said Val Hale, executive director of GOED. “The national average is around 3.5%. Utah continues to be a leader in job growth and low unemployment. It’s because of programs like the Legislature’s EDTIF post-performance tax credit program that Utah’s economy continues to outperform other states.”
EDTIF tax credits are presented to and voted on by the GOED Board after being vetted by staff and Board members. All GOED Board members are appointed by Gov. Herbert and confirmed by the Senate. To learn more about the GOED Board, click here.
“Utah is known for the diversity of its economy, and the companies that announced expansions here in 2019 reflect that diversity,” said Theresa A. Foxley, president and CEO of EDCUtah. “This year, GOED and EDCUtah worked with tech leaders like Amazon Web Services, fintech leaders like Plaid and Brex, and healthtech leaders like Ancestry, OODA and Castlight Health. Balancing the tech side of our economy were some exciting manufacturing expansions such as Oatley, Tyson Fresh Meats, and Intermountain Electronics, and outdoor product companies such as Amer Sports and Ventum. We’re already recognized as having America’s most diverse economy. Diversity delivers resilience and opportunity for Utahns.”
For more information about 2019 EDTIF tax credits and the companies that received them, select the Tax Credits category in the GOED newsroom.
About Utah Corporate Incentives
The Utah Legislature has authorized economic development incentives in the form of post-performance tax credits. Eligible companies work with the Utah Governor’s Office of Economic Development to outline specific performance criteria. Once GOED confirms those criteria have been met, according to statute (U.C.A. 63N-2-106(2)), companies can receive a refund of up to 30% of the state taxes they paid for up to 20 years. The contract with the state is post-performance; it only provides a state tax credit if the company meets its obligations.