Today, the Utah Governor’s Office of Economic Opportunity (Go Utah) awarded Morgan Stanley 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, Morgan Stanley plans to bring up to 800 new jobs, investing $1,000,000 in the growth of its organization in Utah during the next 10 years.
“Morgan Stanley is a global pillar in the financial services industry. Currently, the company employs over 1,600 people in the Salt Lake Valley. We’re thrilled they’ll be adding more employees over the next several years,” said Dan Hemmert, the Office of Economic Opportunity’s executive director. “Since the company first arrived in Utah, we’ve been impressed with its commitment to employees, especially in its fellowship and education programs.”
Morgan Stanley is a pre-eminent global financial services firm that maintains leading market positions in business securities, investment management, and wealth management services. The company provides leadership in investment banking and institutional sales and trading, with strengths in global asset and wealth management.
“Utah has been a key strategic location for Morgan Stanley since 1997, underscored by the recent E*TRADE and Solium acquisitions, two growing businesses with extensive history operating in the state,” said Andrea Verkic Pranic, head of Morgan Stanley Salt Lake. “We are excited to build on our partnerships in Utah while creating rewarding careers for our current and future employees and giving back to the communities where we work and live.”
Morgan Stanley may receive up to 30% of the additional state taxes it will pay over the 10-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 Morgan Stanley meets the criteria in its contract with the state, it will qualify for a portion of the total tax credit.
“Morgan Stanley has long been an anchor of Utah’s robust financial services industry,” said Theresa A. Foxley, president and CEO of EDCUtah. “This expansion demonstrates their deep commitment to our community and their Utah employees.”
Tax Credit Projections
|Capital investment:||$1 million|
|New state tax revenue:||$21.8 million|
|EDTIF new state tax credit:||30%|
Learn more about the state’s post-performance EDTIF program here.