Today, the Utah Governor’s Office of Economic Opportunity (Go Utah) awarded Blue Core Labs, Inc. a temporary, marginal tax reduction for its expansion in rural Utah. As part of the agreement, Blue Core Labs plans to bring up to 140 new high-paying jobs and invest $50 million in rural Utah during the next five years.
“In Utah, there has been a historical divide between our rural and urban areas. We’ve seen unprecedented economic opportunities flow to the Wasatch Front, but we know those opportunities don’t always extend to our most rural communities,” said Dan Hemmert, the Office of Economic Opportunity’s executive director. “In 2021, the state passed legislation to change this dynamic. Today, I’m pleased to announce our first REDTIF deal in a Class 5 County. Blue Core Labs is exactly the kind of company we want here in Utah. In every decision, Blue Core Labs has demonstrated its commitment to Beaver County residents. Already, the company is working on plans to provide housing options in the community, along with helping local agriculture. Blue Core Labs also emphasizes environmental stewardship, packaging its water products in 75% renewable paper board.”
Blue Core Labs is a wellness product manufacturing and fulfillment company. Its products include clean water and nutritional products. Core to its product suite are owned rights to a pristine, naturally alkaline aquifer in Beaver County. This location is connected to one of the nation’s finest spring water aquifers and provides access to approximately 17 to 20 million gallons of perfectly pH-balanced spring water.
“We’re appreciative of the beautiful state of Utah and the pioneer and entrepreneurial spirit that lives here,” said Dave Wheeler, COO and CSO of Blue Core Labs. “There are many individuals and entities that came together on behalf of Blue Core Labs, Inc., including Gov. Cox, the Governor’s Office of Economic Opportunity staff, state Senator Wayne Harper, the Beaver County Commissioners Mark Whitney, Tammy Pearson and Wade Hollingshead, their staff, and the Beaver County Planning and Zoning Department and staff, as well as our financial partners.”
By locating in Beaver, Blue Core Labs is eligible for the rural modifications of the state’s EDTIF tax credit program. Blue Core Labs may receive up to 50% of the additional state taxes it will pay over the five-year life of the agreement in the form of a Utah Legislature-authorized Rural Economic Development Tax Increment Financing (REDTIF) tax credit (U.C.A. 63N-2-106(2)). Each year that Blue Core Labs meets the criteria in its contract with the state, it will qualify for a portion of the total tax credit.
“We’re thrilled that Blue Core Labs represents the first EDCUtah project to land in Beaver County, and in an Opportunity Zone no less,” said Theresa A. Foxley, president and CEO of the Economic Development Corporation of Utah. “The company is committed to rural economic growth, and powering its manufacturing operations with sustainable geothermal energy. This is a win on so many fronts!”
Tax Credit Projections
|Capital investment:||$50 million|
|Projected new state tax revenue:||$4,016,780|
|REDTIF new state tax credit:||50%|
Learn more about the state’s post-performance REDTIF here.