The Utah Governor’s Office of Economic Development (GOED) announced that fiscal year 2020 (FY20) was a record year for Utah corporate recruitment. The year delivered the highest number of new, high-paying jobs promised in a fiscal year ever through the state’s Economic Development Tax Increment Financing (EDTIF) tax credit program.
In FY20, 21 companies participated in the EDTIF program and are collectively projected to create 13,364 new jobs, $1,133,129,906 in capital investment, over $590,977,656 in new state revenue, and $9,738,589,715 in new state wages.
The EDTIF program is a post-performance tax credit that offers companies up to 30 percent of new state revenues (Utah sales, corporate and withholding taxes) during a defined period (typically five to ten years). The tax credit is available to Utah companies expanding and other companies relocating or establishing additional operations in Utah. In fact, the tax credit has most often been used by Utah-based companies. 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.
Created by the Utah Legislature in 2005 and administered by GOED, the EDTIF program is for companies offering high-wage jobs — paying at least 110 percent 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.
“This is great news, and I want to congratulate our team, board members and partners for their hard work to bring jobs and increased opportunity to Utah workers,” said Val Hale, GOED’s executive director. “As we start the new fiscal year in July, we aim to build upon this economic success even as Utah and the country struggle through the coronavirus pandemic with far-reaching economic consequences. Still, economic indicators in Utah are stronger than the rest of the country. Our future is bright.”
In FY20, the EDTIF program saw a few trends that were different from previous years, including a record number of large jobs per project, with six projects creating over 1,000 jobs. FY20 data also show that there was more geographic diversity in tech and more manufacturing projects off the Wasatch Front — a trend GOED expects to continue.
“We attract successful companies of all kinds,” said Carine Clark, chair of the GOED Board. “Utah’s economy is recognized as the most diverse in the nation, and that’s, in part, due to the strategic work of GOED and its corporate recruitment partner, EDCUtah. We’re thrilled to support new, high-paying jobs in the state and appreciate the Legislature’s commitment to growing Utah’s economy.”
“The joint efforts of GOED and EDCUtah this fiscal year have yielded record results in corporate recruitment and retention. We’ve hit new high marks in job creation, capital expenditure, and projected square footage,” said Theresa A. Foxley, president and CEO of the Economic Development Corporation of Utah (EDCUtah). “The projects on which we worked reflect the diversity of Utah’s economy, with notable brands such as Northrop Grumman, Jack Wolfskin, GE Healthcare, and Amazon expanding here. Our collaboration is generating momentum to help the state recover from the COVID contraction.”
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 Utah 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 percent 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 (GOED)
Under the direction of Gov. Gary Herbert, the Utah Governor’s Office of Economic Development (GOED) provides resources and support for business creation, growth and recruitment, and helps drive increased tourism, film production and outdoor recreation in the state. Utilizing state resources and private sector contracts, GOED administers programs in economic areas that demonstrate the highest potential for development. Learn more at business.utah.gov or by calling (801) 538-8680.
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