Today, the Utah Governor’s Office of Economic Opportunity (Go Utah) awarded Stackline a temporary, marginal tax reduction for its expansion in Utah. The post-performance corporate incentive is part of the Legislature’s Economic Development Tax Increment Finance (EDTIF) program.
As part of the agreement, Stackline plans to bring up to 152 new high-paying jobs and invest a projected $200,000 in Utah during the next five years.
Utah does not provide up-front cash for corporate retention and recruitment. Instead, the state offers a post-performance tax credit after the company meets specific obligations, including capital investment, new high-paying jobs, and additional state tax payments.
Eligible companies operate in one of Go Utah’s five targeted industries and work with the Economic Opportunity office to outline performance criteria. Once the office confirms those criteria have been met, according to statute (U.C.A. 63N-2-106(2)), companies can receive a refund of a percentage of the new, additional state taxes they paid until their contract expires.
EDTIF tax credits are approved by Go Utah’s governor-appointed executive director, with advice from the Go Utah Board and support from local communities. The tax credit program operates under Legislative statute and the Cox-Henderson administration’s vision for economic opportunity for all Utahns.
“We’re excited to welcome Stackline to Lehi. Stackline’s platform provides valuable business insights for eCommerce everywhere,” said Dan Hemmert, the Office of Economic Opportunity’s executive director. “With year-after-year growth in eCommerce—and with Stackline’s unique and expanding tools—we anticipate successes in the future.”
Stackline is an all-in-one platform for brands and retailers. By combining market intelligence, advertising automation, workflow management, and operational analytics into a single platform, Stackline delivers the industry-leading operating system for companies to scale their online retail business globally.
“When exploring expansion locations, we seek markets budding with potential, where the next epicenter of tech solutions and innovation is being developed,” said Dave Helmreich, Stackline’s chief revenue officer. “Lehi offers just that, and we’re looking forward to developing our presence in Silicon Slopes.”
Stackline may receive up to 15% of the additional 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. Each year that Stackline meets the criteria in its contract with the state, it will qualify for a portion of the total tax credit.
“We’re excited to see Stackline select Lehi for its new operation,” said Theresa A. Foxley, president and CEO of the Economic Development Corporation of Utah. “It’s a perfect location because of the concentration of tech and talent to be found there. The company will find Silicon Slopes to be a productive location for an expansion.”
Go Utah publicly tracks incented companies in a dashboard available on this webpage. The public data shows when the EDTIF was awarded, numbers of promised jobs, new state wages, new state revenue, projected capital investment, and the maximum tax credit. It reports the term of the contract and the temporary, marginal tax reduction the company may receive if it meets its obligations. The table also shows whether the company has an active agreement, the percentage of new state revenue assessed, and the total tax credit used.
Since EDTIF’s 2005 inception, about 50% of companies awarded an incentive have pursued a post-performance tax credit by entering into a contract. Over the program’s life, companies that have applied for at least one post-performance tax credit have received on average 34% of their contract’s maximum tax credit amount.
The EDTIF program provides an efficient and effective way for Utah to engage in corporate retention and recruitment while ensuring taxpayers receive value from the limited tax credits offered. The program supports the country’s leading economy and provides economic opportunities for Utahns.
State of Utah Tax Credit Projections by the Numbers
|Projected new state tax revenue:||$1,299,707|
|EDTIF new state tax credit:||15%|
Learn more about the state’s post-performance EDTIF program here.