Financial innovation and liquidity provider tZERO Group, Inc. will invest over $2 million and create 80 new jobs at its Utah headquarters over the next eight years. The company offers institutional-grade solutions for issuers looking to digitize their capitalization table through blockchain technology and trade on a regulated alternative trading system.
In support of its expansion in Utah, tZERO Group has been awarded a temporary, marginal tax reduction by the Utah Governor’s Office of Economic Opportunity (Go Utah). The post-performance corporate incentive is part of the Economic Development Tax Increment Financing (EDTIF) program.
“We’re happy to welcome tZERO Group back to Utah. tZERO has created an innovative and regulated platform to help make digital securities more accessible to users,” said Dan Hemmert, Go Utah executive director. “We are excited for tZERO’s future as the company continues to shape blockchain technologies.”
tZERO Group 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 the EDTIF tax credit (U.C.A. 63N-2-106(2)). Each year that tZERO Group 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 Group has chosen Utah as the location for its new headquarters,” said Theresa A. Foxley, president and CEO, Economic Development Corporation of Utah (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
- Timeline: 8 years
- Capital investment: $2.25 million
- Jobs: 80
- Wages: $56,687,325
- New state tax revenue: $9,383,945
- EDTIF new state tax credit: 15%
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