There are multiple parties involved in obtaining economic incentives from the State of Utah when a business is relocating or expanding, but the most important is the Governor's Office of Economic Development (GOED). As you would expect, economic incentives are usually only granted when there is a significant economic benefit to the state. The majority of the expected benefits fall into two categories:
- Job creation
- Capital expenditure
|Salt Lake City skyline|
The incentives are usually granted for a period of 5-10 years, sometimes even longer, and the typical values are 20-25% of the estimated taxes to be paid, with a "not to exceed" cap. See GOED's new video for additional details. Interestingly, the state usually requires the city which most directly benefits from the economic development to also offer some type of incentive.
Another important party for economic incentives in Utah is the Economic Development Corporation of Utah (EDCUtah). They are a private, non-profit organization which partners closely with the state.
There are many examples of successful incentive awards in Utah. Following are a few recent ones:
- RAM Company (aerospace design, engineering & manufacturing)
- Selle Royal (bicycle components manufacturing)
- Health Equity (health savings account administrator)
The other category of party important in obtaining economic incentives is often a site selector. It was convenient for us to use ADP since they also manage our payroll and can easily access the data required for reporting when we claim our payroll tax incentives each year.
In summary, Utah is a business friendly state and their economic incentives program is just one of the reasons why.