The Utah Governor’s Office of Economic Opportunity is pleased to announce that Barnes Bullets, LLC will expand its Utah headquarters, adding up to 116 new high-paying Utah jobs in the next eight years.
“The ammunition market has seen tremendous demand recently, and this will most likely continue for a while,” said Dan Hemmert, the Office of Economic Opportunity’s executive director. “The decision for Barnes to expand its Utah headquarters will benefit Juab County and its surrounding areas. We wish the company success as it continues to grow.”
Barnes manufacturers bullet slugs and ammunition. The company sells ammunition products to wholesalers, dealers, consumers, local, state, and federal agencies, shooting schools, and international customers. Each year Barnes Bullets sells around 30 million rounds of ammunition. Barnes is one of the high-profile brands owned by Clarus Corporation (NASDAQ: CLAR), a global company focused on the outdoor and consumer enthusiast markets.
“We’re deeply committed to not only growing our portfolio of ‘super-fan brands,’ but investing in the people and places that make our brand aspirations a reality,” said John Walbrecht, president of Clarus. “Barnes has a nearly 50-year history of doing business in the great state of Utah, and we look forward to building the brand’s legacy in many years to come. We are grateful for the state’s continuing support and appreciate our long-standing, valuable partnership.”
Barnes may earn up to 50% of the new state taxes it will pay over the five-year life of the agreement in the form of a Utah Legislature-authorized Rural Economic Development Tax Increment Finance (REDTIF) tax credit. The Go Utah Board has approved a post-performance tax credit not to exceed $556,171. Each year Barnes meets the criteria in its contract with the state, it will earn a portion of the total tax credit.
“This is a legacy project for Juab County involving a key employer, and we congratulate them,” said Theresa A. Foxley, president and CEO of the Economic Development Corporation of Utah (EDCUtah). “The acquisition of Barnes Bullets is also strategic for Clarus Corporation, and they will receive the full support of the public-private ‘Team Utah’ to scale and grow the business within rural Utah.”
State of Utah Tax Credit Projections by the Numbers
|Capital Investment||$30.5 million|
|REDTIF new state taxes||50%|
About Rural Utah Corporate Incentives
The Utah Legislature has authorized economic development incentives in the form of post-performance tax credits to promote rural businesses development. Eligible companies work with the Utah Governor’s Office of Economic Opportunity to outline specific performance criteria. Once the Office confirms those criteria have been met, according to statute (U.C.A. 63N-2-104(c)(ii)), companies can receive a refund of up to 50% 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.