The Utah Governor’s Office of Economic Development (GOED) is pleased to announce that Northrop Grumman Corporation intends to expand its operations in Weber County, creating up to 2,250 jobs in the next 20 years.
“This project could create jobs for Hill Air force Base for generations to come,” said Val Hale, GOED executive director. “As one of the top-10 military-friendly employers, the proposed expansion would better serve Weber County and our growing aerospace industry.”
Northrop Grumman is currently the largest security and defense company in Utah with more than 5,100 employees across the state, primarily located in Bacchus, Clearfield, Ogden, Promontory and Salt Lake. Northrop Grumman is a leading global security company providing innovative systems, products and solutions in autonomous systems, cyber, C4ISR, space, strike, and logistics and modernization to customers worldwide.
“We are proud to expand our presence in Utah by bringing new, high-paying jobs to the state,” said Greg Manuel, vice president of Northrop Grumman’s ground-based strategic deterrent enterprise.
Northrop Grumman may earn up to 30% of the new state taxes it will pay over the 20-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 $59,919,439. Each year that Northrop Grumman meets the criteria in its contract with the state, it will earn a portion of the total tax credit.
“This is a significant win for Northern Utah. Northrop Grumman is the state’s largest private sector employer in aerospace and defense, and they continue to demonstrate their confidence in doing business here,” said Theresa A. Foxley, president and CEO of the Economic Development Corporation of Utah. “On a broader level, we as Utahns can be proud of what this means in terms of national defense and global security.”
State of Utah Tax Credit Projections by the Numbers
|Capital Investment||$380 million|
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.