The Utah Governor’s Office of Economic Development (GOED) today announced Castlight Health, Inc. will open a new location in Utah adding up to 235 jobs and $4.6 million in new state revenue and an estimated $3.1 million in capital investment over the next five years.
“Castlight Health will be a great addition to Utah’s growing healthcare and technology industry sectors,” said Val Hale, executive director at the Utah Governor’s Office of Economic Development. “Healthcare is important to Utahns, and we’re glad Castlight chose Utah.”
Castlight Health offers a comprehensive health navigation platform that guides users to their best available healthcare resources, resulting in lower healthcare costs, higher engagement, and improved outcomes. Through its unique combination of hundreds of health data integrations and machine learning that leverages this dataset to personalize the user experience, Castlight simplifies healthcare for 20 million users and more than 260 companies.
“We are excited to open Castlight’s Center of Excellence in Utah,” said Siobhan Nolan Mangini, president and CFO of Castlight Health. “The Salt Lake City area provides access to a talented workforce that will enable us to deliver innovative healthcare technology solutions to our customers. We want to thank the Governor’s Office of Economic Development for helping us find the right home for Castlight’s newest location.”
Castlight Health, Inc. will create up to 235 jobs in Utah over the next five years. The total wages in aggregate are required by statute to exceed 110 percent of the average county wage. Projected new state wages over the life of the agreement may be up to $115,887,125, which includes wages, salaries, bonuses and other taxable compensation. Projected new state revenues, as a result of corporate payroll and sales tax, are estimated to be $4,601,934 over the next five years.
“We are confident Castlight will find our state and industry welcoming and entrepreneurial, and in-line with its drive for growth and innovation,” said Theresa Foxley, president and CEO of the Economic Development Corporation of Utah. “Castlight Health joins an increasing number of healthtech companies establishing operations in Utah. The depth, breadth, and talent of our tech workforce and the ease of access from the West Coast are appealing.”
Castlight Health may earn up to 20 percent of the new state taxes they will pay over the five-year life of the agreement in the form of a post-performance Economic Development Increment Finance (EDTIF) tax credit. As part of the contract with Castlight Health, the GOED Board of Directors has approved a post-performance tax credit not to exceed $920,387. Each year that Castlight Health meets the criteria in its contract with the state, it will earn a portion of the total tax credit.
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 up to 30 percent of the state taxes they paid for up to 20 years.