Leading Health Savings Account Administrator to Expand in Utah

Pete CodellaNews, Tax Credits

The Utah Governor’s Office of Economic Development (GOED) is pleased to announce that HealthEquity, Inc. (NASDAQ: HQY), the nation’s largest health savings account (HSA) custodian, will expand in Utah, creating up to 550 high-paying jobs in the next seven years.

“HealthEquity is a homegrown Utah company with a solid track record and an impressive team member development program,” said Val Hale, GOED’s executive director. “HealthEquity is committed to hiring and developing talent within the state. This expansion will only help further the company’s success and continued growth.”

Headquartered in Draper, HealthEquity is a leading administrator of HSAs and other consumer-directed benefits for nearly 12 million members. The company has a strong culture of providing what they call, “Purple” service to its members, partners, clients and team members. Especially during the COVID-19 pandemic, HealthEquity is committed to taking care of individuals across the country 24/7, as well as actively addressing the economic need in Utah through its remarkable service. 

“We’re extremely proud of our Utah roots and the opportunity to expand our business while providing jobs and enhancing growth in our backyard,” said Jon Kessler, president and CEO of HealthEquity. “Additionally, as we’re in the middle of navigating these uncharted waters of COVID-19, we recognize this as an opportunity to provide ‘Purple’ to so many, as well as acknowledge the position we have to make a positive impression on our state’s economic development.”

HealthEquity may earn up to 20% of the new state taxes it will pay over the seven-year life of the agreement in the form of a Utah Legislature-authorized Economic Development Tax Increment Finance (EDTIF) tax credit. The GOED Board has approved a post-performance tax credit not to exceed $2,333,766. Each year that HealthEquity meets the criteria in its contract with the state, it will earn a portion of the total tax credit.

“HealthEquity’s continued expansion in Utah is a testament to our ‘health-tech’ industry, with its talented workforce and business-friendly environment,” said Theresa Foxley, president and CEO of the Economic Development Corporation of Utah. “This is also indicative that the state’s post-performance tax credits are well-suited to keep Utah-based companies adding jobs to our economy.”

State of Utah Tax Credit Projections by the Numbers

Tax Revenue$11,668,830
Capital Investment$38 million
Timeline7 years

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.