The Utah Governor’s Office of Economic Opportunity (Go Utah) is pleased to announce that Udo, LLC plans to expand its Farmington, Utah headquarters, adding up to 300 new high-paying Utah jobs in the next five years.
“This expansion is a big win for Davis County,” said Dan Hemmert, the Office of Economic Opportunity’s executive director. “Udo will add to Utah’s growing health tech sector, creating jobs for engineers, copywriters, and more. We wish Udo success as they continue to grow.”
Udo is a Software as a Service (SaaS) communication company that focuses on video communication. Initially, this software will be used to improve healthcare coordination and continuity. Udo’s initial launch product is UdoCare. UdoCare is a smartphone application used by patients to communicate primarily through video to their medical providers, collaborators, and family members.
“Udo is progressing rapidly, even by Utah technology standards,” said Danny Fraser, Udo co-founder and CEO. “We intend to create as much benefit for the Utah community and economic ecosystem as we possibly can. This commitment of support from the Governor’s Office of Economic Opportunity will be a significant aid to our ability to reach our highest potential while locating our company headquarters and as many of our employees as possible here.”
Udo may receive up to 20% 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. The Go Utah Board has approved a post-performance tax credit not to exceed $2,870,622. Each year that Udo meets the criteria in its contract with the state, it will qualify for a portion of the total tax credit.
“A lot of tech talent commutes south out of Davis County every day,” said Chris Roybal, president of the Northern Utah Economic Alliance (NUEA). “Udo’s choice of Station Park, with its convenient location and many amenities, will prove to be a recruiting plus for them.”
“Udo will be a disruptive influence that will eliminate a lot of unnecessary costs associated with information duplication in the healthcare industry,” said Brigham Mellor, Farmington, Utah’s economic development director. “Udo is a company to watch as they grow in the coming years. Farmington is proud to have them as one of our corporate tenants.”
State of Utah Tax Credit Projections by the Numbers
|Capital investment||$6.2 million|
|Projected new state tax revenue||$14,353,108|
|EDTIF new state taxes||20%|
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 new 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.