Today, the Utah Governor’s Office of Economic Opportunity (Go Utah) awarded Breeze Aviation Group, Inc. a temporary, marginal tax reduction for its expansion in Utah. The post-performance corporate incentive is part of the Legislature’s Economic Development Tax Increment Financing (EDTIF) program.
As part of the agreement, Breeze Airways plans to bring up to 78 new high-paying jobs and invest $8 million in Utah during the next five years.
“This significant expansion from Breeze brings jobs, connects Utahns through new flight routes to new destinations, and provides opportunities for people to visit Utah for work and play,” said Dan Hemmert, the Office of Economic Opportunity’s executive director. “We’re excited to see this Utah company grow, and we’re even more excited to take advantage of its budget-friendly airfare.”
Breeze Airways is a Utah-based airline that began flying in the summer of 2021. The company focuses on offering nonstop flights and low fares on routes ignored or abandoned by other airlines. By flying nonstop routes with little or no competition, Breeze Airways opens up travel to many that did not have the option or could not previously afford it.
“It’s been the question on everyone’s lips since we first opened our headquarters — when are you flying from Utah,” said Breeze’s founder and CEO David Neeleman. “We’re excited to continue growing and hiring from here, and now flying from Utah too. The beautiful, newly renovated Provo airport will give our guests an easy way to travel to both coasts and provide a wonderful ‘home base’ for Breeze.”
Breeze Airways may receive up to 15% of the additional state taxes it will pay over the five-year life of the agreement in the form of a Utah Legislature-authorized Economic Development Tax Increment Financing (EDTIF) tax credit (U.C.A. 63N-2-106(2)). Each year that Breeze meets the criteria in its contract with the state, it will qualify for a portion of the total tax credit.
“We’re encouraged by Breeze Airways selecting Utah as a national training center for its pilots and maintenance staff,” said Theresa A. Foxley, president and CEO of the Economic Development Corporation of Utah. “Workforce development is critical to any industry, and we anticipate Breeze will find competitive operating costs and logistical advantages siting this center here.”
Tax Credit Projections
|Capital investment:||$8 million|
|Projected new state tax revenue:||$1,800,249|
|REDTIF new state tax credit:||15%|
Learn more about the state’s post-performance EDTIF program here.