Utah’s Tax Credit Incentive: How Businesses Are Thriving And Yours Could Too
Utah’s Tax Credit Program: How Businesses Are Thriving And Yours Could Too
Utah isn’t just about stunning landscapes and outdoor adventures, It’s a thriving hub for corporations thanks to its tax credit incentives. Big names like Adobe, eBay, Amazon, and Procter & Gamble have joined the Utah business community, leveraging a corporate-friendly climate. Whether you are growing your company from within or on the look out to recruit new staff, Utah’s tax credit program might be for you. Utah’s economy continues to lead the nation with its business-friendly environment. This blog features Utah’s tax credit incentive and a look at success stories from some game-changing companies.
Tax Credit Incentives
Since 2005, Utah’s Economic Development Tax Increment Financing (EDTIF) program has been a magnet for companies looking to expand or set up shop. About two-thirds of participating companies are homegrown, but the program also appeals to global giants like Northrop Grumman, Facebook, and Boeing.
The catch? These companies agree to create jobs, invest locally, and hit performance benchmarks set in their contracts with the state. In exchange, they get a slice of the tax credit pie—an incentive that drives both growth and innovation.
Simplified Overview of Utah's EDTIF and REDTIF Programs
The Economic Development Tax Increment Financing (EDTIF) program, created by Utah lawmakers in 2005, is designed to support the state’s economic growth. Over the years, adjustments have been made to ensure the program stays effective, meeting the needs of both urban and rural areas.
Updated Focus
As of 2022, the program’s focus is on creating jobs across Utah, addressing the unique needs of urban and rural communities.
For Urban Areas
In urban counties, EDTIF incentives are offered to companies in specific industries, such as:
- Advanced Manufacturing
- Aerospace and Defense
- Financial Services
- Life Sciences and Healthcare
- Software and Information Technology
For Rural Areas
In rural regions, a modified version of EDTIF, called REDTIF, provides even larger incentives. It also allows for projects outside the targeted industries, encouraging diverse development in these communities.
How Projects Are Evaluated
When companies apply for the EDTIF or REDTIF programs, the state considers:
- The average wages of the new jobs being created.
- The amount of money the company plans to invest in local projects.
- The type and number of jobs being added.
- Whether the jobs involve headquarters or innovation-focused roles.
- The company’s contributions to the community.
These programs are structured to support businesses while creating long-term benefits for Utah’s economy. For more information on this visit Utah's Governor's Office of Economic Opportunity.
Businesses Who Were Recently Awarded the Tax Credit
Strider’s Impact in Utah’s Tech Scene
One standout is Strider, a cutting-edge company that’s revolutionizing how organizations protect their intellectual property. Strider is expanding its footprint in Salt Lake County, planning to create 152 high-paying jobs and invest $415,000 over the next five years.
According to Ryan Starks, executive director of Utah’s Governor’s Office of Economic Opportunity, “Utah’s IT infrastructure and ecosystem support a tech-driven economy. Strider’s expansion is yet another step toward solidifying our state’s position as a leader in innovation.”
Strider’s CEO, Greg Levesque, praises Utah’s proactive approach, saying, “This state understands the value of innovation and is creating a space where companies like ours can thrive.”
Rio Tinto: Expanding Critical Mineral Production
Utah’s mining industry also benefits from the EDTIF program. Rio Tinto plans to invest $201 million in expanding its Kennecott copper operations in Salt Lake County. If approved, this move will create seven high-paying jobs and enhance the production of critical minerals like tellurium—an essential component for solar panels.
Rio Tinto is also exploring ways to recover other rare minerals, which could strengthen North America’s supply chain for critical resources. This initiative underscores Utah’s role as a national leader in both mining and sustainability.
Torus: Driving Renewable Energy in Utah
Another success story comes from Torus, Inc., an innovative energy solutions company. Torus is expanding its operations in South Salt Lake City, planning to create 172 jobs and invest $10 million over the next decade.
Torus specializes in clean energy storage and manufacturing, using 100% American-made materials. Co-founder and CEO Nate Walkingshaw emphasizes, “Utah’s supportive business climate and focus on sustainability make it the perfect place for our expansion.”
Mayor Cherie Wood of South Salt Lake echoed this sentiment, calling Torus a “remarkable organization” that’s boosting local economic vitality while pushing the boundaries of renewable energy innovation.
Why Utah Stands Out
Utah’s tax credit incentives aren’t just about attracting businesses, they’re about attracting growth that benefits the community. With a skilled workforce, innovative infrastructure, and a pro-business attitude, Utah has become a beacon for industries like tech, mining, and renewable energy.
Ready to Explore Utah’s Potential?
Welcome to the place where companies thrive and communities grow. If you’re considering a move or expansion, let’s talk. When you’re ready to look into Utah’s real estate market, I’m here for you.
Discover homes for sale in Northern Utah HERE.
Curious what your house payment will look like in Utah? Try out my Mortgage Calculator HERE.
Adrian Hicks
(801) 347-4829
AdrianHicks13@gmail.com
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