TaxBit To Expand Its Utah Location

Pete CodellaNews, Tax Credits

The Utah Governor’s Office of Economic Opportunity is pleased to announce that TaxBit, Inc. will expand its facility in Utah, adding up to 1,700 new high-paying Utah jobs in the next 10 years.

“TaxBit has a unique business model and will be a fantastic addition to Utah’s tech sector,” said Dan Hemmert, Go Utah’s executive director. “With this expansion, TaxBit will be hiring for various positions including CPAs, software developers, attorneys, implementation consultants, security, sales, marketing, and many others.”

TaxBit is a software that automates tax and accounting reporting for capital assets. The company provides tax reports and back-end accounting, working with some of the county’s most prominent brokerages and CPA firms. TaxBit connects cryptocurrency transactions across every exchange so that clients can accurately file taxes, manage portfolios, and make tax-optimized trades.

“We’re excited to work with the Governor’s Office of Economic Opportunity as TaxBit enters a rapid phase of growth,” said Justin Woodward, co-founder and tax attorney of TaxBit. “We were founded in Utah and believe it has an incredible ecosystem of industry-leading tech companies and an impressive collection of best-in-class talent.” 

TaxBit may earn up to 15% of the new state taxes it will pay over the 10-year life of the agreement in the form of a Utah Legislature-authorized Economic Development Tax Increment Finance (EDTIF) tax credit. The Go Utah Board has approved a post-performance tax credit not to exceed $4,424,503. Each year TaxBit meets the criteria in its contract with the state, it will earn a portion of the total tax credit. 

“It comes as no surprise that Utah company TaxBit is at the cutting edge of compliance technology for the exciting innovations in blockchain and cryptocurrency,” said Theresa A. Foxley, president and CEO of the Economic Development Corporation of Utah (EDCUtah). “The legal and accounting talent here is bar-none and will help TaxBit grow and excel in the ever-changing world of fintech.”

State of Utah Tax Credit Projections by the Numbers

Tax Revenue$29,496,688
Capital Investment$70 million
Timeline5 years
EDTIF new state taxes  15%
EDTIF amount$4,424,503

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 Opportunity to outline specific 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 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.