Today, the Utah Governor’s Office of Economic Opportunity (Go Utah) awarded Electric Power Systems, Inc. (EP Systems) a temporary, marginal tax reduction for its expansion in rural Utah. The post-performance corporate incentive is part of the Legislature’s Economic Development Tax Increment Financing (EDTIF) program.
As part of the agreement, EP Systems plans to bring up to 3,130 new high-paying jobs and invest significant capital expenditure in rural Utah during the next nine years.
“EP Systems is a pillar in Cache County’s economy. We’re excited—though not surprised—to see the company continue to thrive,” said Dan Hemmert, the Office of Economic Opportunity’s executive director. “This expansion will allow EP Systems to develop and manufacture state-of-the-art batteries in Utah. EP Systems’ innovative battery cells are a game-changer, especially in the aerospace industry.”
EP Systems is a leading provider of high-voltage, high-power, certifiable, and scalable power systems for high-reliability applications in the aviation industry. The company is an emerging leader in energy storage and propulsion industries providing solutions to markets primarily in aerospace and defense, with additional reach into automotive, marine, and industrial traction.
“We’re thrilled to continue to expand our footprint in the state of Utah,” said Nathan Millecam, president and CEO of EP Systems. “After spending the past five years developing our battery technology here in Utah, we’re excited to further grow our local economy by building a high technology industrial base.”
EP Systems may receive up to 25% of the additional state taxes it will pay over the nine-year life of the agreement in the form of a Utah Legislature-authorized Rural Economic Development Tax Increment Financing (REDTIF) tax credit. Each year that EPS meets the criteria in its contract with the state, it will qualify for a portion of the total tax credit.
“EP Systems’ expansion will help Utah grow its battery-powered industry,” said Theresa A. Foxley, president and CEO of the Economic Development Corporation of Utah. “The company has established itself as the leader in the electrified aeronautics space, and we’re proud to call them a Utah brand.”
Tax Credit Projections
|New state tax revenue:||$279,513,019|
|REDTIF new state tax credit:||25%|
Learn more about the state’s post-performance REDTIF program here.