The Utah Governor’s Office of Economic Opportunity (Go Utah) awarded tZERO Group, Inc. (tZERO), a leader in financial innovation and liquidity for private companies, a temporary, marginal tax reduction for its expansion in Utah. The post-performance corporate incentive is part of the Legislature’s Economic Development Tax Increment Financing (EDTIF) program.
As part of the agreement, tZERO plans to bring up to 80 new financial technology jobs and invest over $2.2 million in payroll in Utah during the next eight years.
“We’re happy to have tZERO growing in Utah, where the company is headquartered. tZERO has created an innovative and regulated platform to help make private securities more accessible to users,” said Dan Hemmert, the Office of Economic Opportunity’s executive director. “We are excited for tZERO’s future as the company continues to innovate capital markets utilizing blockchain technology.”
tZERO is a financial technology company that provides transformative market-based solutions for companies, entrepreneurs, and retail and institutional investors. Since its founding in 2014, tZERO’s mission has been to democratize access to capital markets by establishing more efficient, accessible, and transparent marketplaces. tZERO works with companies to create innovative solutions and products. tZERO also designs and manages companies’ marketplaces to help them achieve their strategic goals.
“We’re pleased to work with the Utah Governor’s Office of Economic Opportunity,” stated David Goone, tZERO’s chief executive officer. “We’ve already established our headquarters in Utah over the last year and look forward to growing our footprint. These incentives will allow us to stay competitive and attract top talent while adding value to the growing technology community within the Salt Lake Valley region. tZERO was founded in Utah, and we’re excited to be back.”
tZERO may receive up to 15% of the additional state taxes it will pay over the eight-year life of the agreement in the form of a Utah Legislature-authorized Economic Development Tax Increment Financing (EDTIF) tax credit (U.C.A. 63N-2-106(2)). Each year that tZERO meets the criteria in its contract with the state, it will qualify for a portion of the total tax credit.
“While our involvement in this project was limited, we’re pleased that tZERO is growing its footprint in Utah at its corporate headquarters,” said Theresa A. Foxley, president and CEO of EDCUtah. “Utah has proven itself as a solid investment choice for both established and disruptive financial services companies to locate their operations.”
Tax Credit Projections
|Capital Investment:||$2.25 million|
|New state tax revenue:||$9,383,945|
|EDTIF new state tax credit:||15%|
Learn more about the state’s post-performance EDTIF program here.