In its public meeting today at the Utah State Capitol, the Governor’s Office of Economic Development (GOED) Board approved Amazon for a post-performance incentive agreement to begin carrying out a new project in Utah.
Founded in 1994, Amazon is the largest Internet-based retailer in the world. The company will announce in the coming weeks details about the project location, scope and timeline.
The Amazon project will create several hundred jobs over the next eight years, and 130 of them qualify for an incentive agreement. The total wages of incentivized jobs in aggregate are required to exceed 110 percent of the county average wage. The projected new state wages over the life of the agreement are expected to be approximately $85,532,234. Projected new state tax revenues, as a result of corporate, payroll and sales taxes, are estimated to be $28,403,534 over eight years. The estimated capital investment of the project is expected to be $200 million.
Amazon may earn up to 20 percent of the new state taxes they will pay over the eight-year life of the agreement in the form of a post-performance Economic Development Tax Increment Finance (EDTIF) tax credit rebate. As part of the contract with Amazon, the GOED Board of Directors has approved a post-performance tax credit rebate not to exceed $5,680,707. Each year as Amazon meets the criteria in its contract with the state, it will earn a portion of the total tax credit rebate.