The Utah Governor’s Office of Economic Development announced today that Utah-based businesses continued to perform at the top of their game in the Fiscal Year 2021 (FY21). From July 2020 to June 2021, 19 companies participated in the state’s EDTIF program and are collectively projected to create 8,595 new jobs, $456,295,800 in capital investment, over $330,773,204 in new state revenue, and $5,239,056,381 in new state wages in the coming years.
The Legislature’s Economic Development Tax Increment Financing (EDTIF) tax credit program is administered by the Governor’s Office of Economic Development. It provides a post-performance tax credit that offers companies up to 30% of new state revenues (Utah sales, corporate, and withholding taxes) during a defined period (typically 5 to 10 years).
Created by the Legislature in 2005, the EDTIF program is for companies offering high-wage jobs — paying at least 110% of the average county wage. By design, the program has a ripple effect, creating additional jobs that support corporate expansion across Utah’s diverse economy.
The tax credit is available to Utah companies expanding and other businesses relocating or establishing additional operations in Utah.
Utah-based companies have most often used the tax credit. Since its inception, two-thirds of the program’s tax credits have gone to Utah-based companies to help them expand and create more jobs for Utahns.
“This past fiscal year has been one wild ride, but we’re happy companies still decided to expand and grow in our state,” said Dan Hemmert, GOED’s executive director. “Utah continues to have one of the best economies in the nation, and I believe our EDTIF program has and will continue to help with that success.”
In FY21, the EDTIF program remained strong even during the global pandemic. Utah maintained its status as one of the best locations for businesses looking to expand. Trends for the year included more manufacturing projects and more projects that chose locations off of the Wasatch Front. In FY21, the state also experienced renewed interest in the expansion of biotechnology companies, a trend expected to continue into 2022.
“We’ve had another successful fiscal year helping Utah companies expand and recruiting a diverse portfolio of companies,” said Carine Clark, chair of the GOED Board. “I want to thank all of our Board members, the Legislature, and our partners at EDCUtah for their continued support of Utah entrepreneurs and the state’s economic expansion.”
“The joint efforts of GOED and EDCUtah saw a dramatic increase in manufacturing and distribution projects,” said Theresa A. Foxley, president and CEO of the Economic Development Corporation of Utah (EDCUtah). “Some of these projects included notable brands such as Hexcel, Carvana, CaptiveAire, and Williams International. We also worked on some significant information technology expansions, including Domo, Scorpion, and Waystar. Our state’s appeal remains based on our geographic advantages and talented workforce.”
About Utah Corporate Incentives
The Utah Legislature has authorized economic development incentives in the form of post-performance tax credits. Eligible companies work with the Governor’s Office of Economic Development to outline specific performance criteria. Once GOED confirms those criteria have been met, according to statute (U.C.A. 63N-2-106(2)), companies can receive a refund of up to 30% of the state taxes they paid for up to 20 years. The contract with the state is post-performance; it only provides a state tax credit if the company meets its obligations.
About the Utah Governor’s Office of Economic Development
Under Gov. Spencer J. Cox’s direction, the Utah Governor’s Office of Economic Development (GOED) provides resources and support for business creation, growth, and recruitment. It also drives increased tourism, film production, outdoor recreation, and mixed martial arts in Utah. Utilizing state resources and private sector contracts, GOED administers programs in economic areas that demonstrate the highest potential for development and the most opportunity for Utahns. Learn more at business.utah.gov or by calling (801) 538-8680.