By the BF Staff
From the September / October 2023 Issue
Over the past year, Utah has witnessed an exceptional surge in growth, marked by an increase of more than 500% in new capital investments compared to the previous year.
“This has been a historic and prosperous year for Utah’s economic growth,” said Ryan Starks, Executive Director of the Utah Governor’s Office of Economic Opportunity.
“We met new milestones, including the largest economic investment in Utah history with the expansion of Texas Instruments. The Economic Development Tax Increment Financing (EDTIF) and the Rural Economic Development Tax Increment Financing (REDTIF) tax-incentive programs continue to attract investments from companies representing a variety of industries, and I want to express thanks to our team for their collective efforts.”
The Economic Opportunity office oversees the Utah Legislature’s EDTIF tax credit program.
Established by the legislature in 2005, the EDTIF program is tailored for companies that provide high-wage positions, ensuring salaries are at least 110% of the average county wage.
“Our state continues to do a phenomenal job of retaining and recruiting companies that bring more high-paying jobs to Utah and continue to diversify our economy. This is a direct result of our combined efforts that result in strategic economic plans.”
— Carine Clark,
Economic Opportunity Office Board Chair
The program is designed to lead to the creation of supplementary jobs that bolster corporate expansion throughout Utah’s multifaceted economy.
It also offers a post-performance tax credit, granting companies a reduction in their marginal tax rates—up to 30% of newly generated state tax revenues over a defined period, typically five to 10 years. Sixteen companies participated in Utah’s EDTIF program between July 2022 and June 2023. Together, they’re expected to create 3,630 new jobs, infuse roughly $12 billion in fresh capital investments, contribute more than $574 million in additional state tax revenue, and deliver $4 billion in new state wages over the next two decades.
The REDTIF program, tailored for projects in rural areas, has expanded incentives considerably. This initiative has ushered unprecedented economic opportunities into Utah’s rural communities. Eligibility for this credit extends to companies expanding into Utah or relocating or establishing additional operations in the state.
Since its inception, roughly two-thirds of the program’s tax credits have gone to Utah-based companies, aiding in their growth and creating more jobs for Utahns. Projected capital investments in rural Utah from announced projects for FY23 are estimated to surpass $1.2 billion, mirroring figures from 2022 and exceeding the combined capital investment in rural Utah between 2017 and 2021 through state incentives.
“Our state continues to do a phenomenal job of retaining and recruiting companies that bring more high-paying jobs to Utah and continue to diversify our economy,” said Carine Clark, Economic Opportunity Office Board Chair. “This is a direct result of our combined efforts that result in strategic economic plans.”
Scott Cuthbertson, President and CEO of EDCUtah, said they are proud of the “collaborative efforts” that have helped create high-paying jobs in the state.
“The companies choosing to invest in Utah are leaders in their respective industries and good corporate citizens,” Cuthbertson said. “They will have an immense impact on the prosperity of our communities for generations to come.”
Centers Of Excellence Abound In Utah
Residents of Northern Utah derive their sense of place from the emotive bonds they have with where they work, live, and play. The population of 635,000 is spread across an area of approximately 50 miles—breathing room bounded by picturesque Wasatch Mountains on the east, the Great Salt Lake on the west, and endless recreational and cultural opportunities in between.
“The companies choosing to invest in Utah are leaders in their respective industries and good corporate citizens. They will have an immense impact on the prosperity of our communities for generations to come.”
— Scott Cuthbertson,
You will find centers of excellence in advanced manufacturing; aerospace and defense; and outdoor products manufacturing, not to mention the other vibrant industries. Just 30 minutes north of Salt Lake City, Hill Air Force Base is an economic driver with a $9 billion annual economic impact. The base employs more than 25,000 workers supporting the Air Force Materiel Command, depot maintenance, military logistics, and Intercontinental Ballistic Missile (ICBM) sustainment and development.
Major employers in Northern Utah include Northrop Grumman, a top global defense contractor; Kimberly-Clark, the global leader in mom-trusted baby and child care brands; Autoliv, the worldwide leader in automotive safety systems; and Lifetime Products, a global leader of outdoor products. The area is also home to more than 18 outdoor product manufacturing companies — brands like Amer Sports, Rossignol, and more.
Transportation is quick and convenient in the region. The vast network of roads and rail lines supports industrial and commercial business.
As the Crossroads of the West — a central connection for flight, rail freight, and interstate travel between the West Coast and East Coast, and from Canada to Mexico — Davis and Weber counties are distinctly situated to serve business transportation and distribution needs.
The City of Ogden, county seat in Weber County, lies just 45 minutes north of the Salt Lake City International Airport, which serves more than 26 million passengers annually.
A family-centered environment: A hot job market, stellar economy, family centered environment, and endless recreational opportunities add to an exceptional quality of life.
The success formula: happy people mixed with a pioneer heritage, culture of hard work, and a willingness to collaborate and cooperate. Educationally, 94% of those age 25 or older have a high school diploma or higher, and 32% have a bachelor’s degree or higher. Weber State University and the Ogden-Weber and Davis Vocational technical colleges support post-secondary education and workforce training.
Utah Governor Spencer J. Cox discusses how robust business incentives offer companies vast opportunity in the Beehive State. Read more…
In Northern Utah, your backyard is your playground. The region features three ski resorts, including Snowbasin, home to the downhill events in the 2002 Olympic Winter Games, more than 1,000 miles of hiking/biking trails, water sports on area lakes, reservoirs, and rivers, camping, fishing, hunting, kayaking, and more.
No surprise, Utah leads the nation in outdoor recreation, which generates 110,000 direct jobs, $12.3 billion in consumer spending, $3.9 billion in wages and salaries, and $856 million in tax revenue. But the region also features exceptional cultural events, Broadway-style plays, festivals, concerts, and nationally renowned cultural centers.
The bottom line is Northern Utah’s low tax rates, business-friendly environment and quality of life have secured the region as one of the most attractive places to do business, and to work, live, and play.
For more information, visit nuea.org.