Nelnet to Expand Operations and Open Utah Bank Headquarters

Pete CodellaNews, Tax Credits

The Utah Governor’s Office of Economic Development (GOED) is pleased to announce that Nelnet, Inc. will open an office in Utah, creating up to 52 high-paying jobs in the next five years. This location will be the headquarters for their recently formed banking operation and is their first Utah office.

“Nelnet will provide value to Utah students, families, and our financial services industry,” said Val Hale, GOED’s executive director. “Nelnet is an impressive company with diverse business interests. We welcome them to the state and are grateful for the high-paying, high-quality jobs they’ll provide.”

Nelnet is a diversified services company with roots in the administration and servicing of student loans. Since formation in 1978, the company has grown to become one of the nation’s largest loan servicers and has created new business lines to provide technology solutions in many education-related fields such as tuition payment plans, student information systems, and internet service. Seeking to further expand offerings for education-seeking families, Nelnet has recently been approved for an FDIC-insured Utah industrial bank charter.

“This new location is an important expansion for Nelnet. Our physical presence will give us access to the region’s incredible technology and financial services talent, who we are eager to put to work across our various business units,” said Andrea Moss, CEO of Nelnet Bank.

Nelnet may earn up to 15% of the new 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 Finance (EDTIF) tax credit. The GOED Board has approved a post-performance tax credit not to exceed $134,699. Each year that Nelnet meets the criteria in its contract with the state, it will earn a portion of the total tax credit.

“We congratulate Nelnet for successfully navigating a rigorous state and federal application process,” said Theresa Foxley, president and CEO of the Economic Development Corporation of Utah. “As one of the first industrial bank charters approved in a decade, it’s evidence of a more open approach by the FDIC, which is great news for Utah’s financial services industry.”

State of Utah Tax Credit Projections by the Numbers

Tax Revenue$897,991
Capital Investment$1 million
Timeline5 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.