Today, the Utah Governor’s Office of Economic Opportunity awarded Thales a post-performance tax reduction for its expansion in Salt Lake City. The corporate incentive is part of the state’s Economic Development Tax Increment Financing (EDTIF) program.
As part of the agreement with the state of Utah, Thales projects to add 54 new, high-paying jobs and invest $21,000,000 in Utah during the next 10 years, an endeavor that will include moving to a new, larger facility to expand the impact of its Moog acquisition.
Thales established its presence in Salt Lake City with the acquisition in 2021 of Moog’s Navigation Systems, which offers more comprehensive aerospace navigation aid solutions to the U.S. military and customers worldwide. Thales has over 80 years of experience and expertise in staffing and executing major ATM (Air Traffic Management) programs for customers, including the U.S. Department of Defense (DOD), the Federal Aviation Administration (FAA), NAV CANADA, and the Canada Department of National Defense (DND). In total, Thales systems account for more than 75% of all navigation aids globally, and 99% of U.S. commercial airports rely on Thales navigation aids to assist pilots in landing.
With 4,300 employees in 22 states and 600 new hires planned in 2023, Thales is an established player with a growing footprint in the United States. The Group is particularly recognized in the US defense sector, with a continuum between cybersecurity and defense, and has an increasing presence in digital identity and security.
“Thales is globally renowned in its sphere of specialty navigation systems and is an asset to Utah’s dynamic aerospace and defense community,” said Ryan Starks, executive director of the Governor’s Office of Economic Opportunity. “The company has proved its expertise working with the U.S. Department of Defense and other agencies, broadening our state’s connection worldwide. We’re grateful for Thales’ commitment to Utah’s economy and look forward to continuing our working relationship.”
“Today’s increasing global security concerns have created a strong demand for tactical navigation products enabling our government’s and our allies’ contingency air operations and evolving military mobility needs,” said Todd Donovan, vice president of Airspace Mobility Solutions – Americas. “We’re pleased to work with Utah to support this growth and continue the nearly 70-year legacy in Salt Lake City.”
“Thales’ reinvestment and expansion in Utah continues to add depth and expertise to our thriving aerospace and defense industry,” said Scott Cuthbertson, president and CEO of EDC Utah. “We welcome its commitment to growing in Salt Lake City and providing quality high-paying jobs at their new facility.”
“Because of our thriving talent pool, easy access to the beautiful outdoors, and booming commerce and culture scene, Salt Lake City continues to be the place where businesses want to land and expand. We are excited for the Thales expansion and for the good jobs it will bring,” said Salt Lake City Mayor Erin Mendenhall. “Not only is this a win for the aerospace and defense industry here in Utah, it’s also a win for Salt Lake City residents who will benefit from the jobs and positive economic impact.”
Tax Credit Projections
|New state tax revenue:||$7,330,844|
|EDTIF new state tax credit:||25%|