CORPORATE RECRUITMENT AND INCENTIVES Overview The Corporate Recruitment and Incentives program helps GOED fulfill its mission by recruiting companies to Utah that add strategic value to Utah’s economy. In addition, GOED incents existing Utah companies for business expansion and retention. These companies create new, highpaying jobs that help diversify the state economy, increase the tax base, attract and retain top-level management, and encourage graduates of in-state universities to remain in Utah and improve the standard of living of its citizens. To recruit new companies to the state and assist the expansion of existing companies, GOED offers incentives P&G ground breaking ceremony, May 2008. in the form of post performance refundable tax credits and grants. The incentive amount and duration is based on statutory guidelines and evaluation criteria including: the number and salary of jobs created, amount of new state revenue, long term capital investment, competition with other locations, and whether the company is within a targeted industry. Targeted industries are outlined in detail in the “Targeted Economic Clusters” section of this report. A unique feature of Utah’s corporate recruitment and expansion incentives is that funds are awarded on a post performance basis so that companies must meet specific milestones, including generating new state tax revenue, before incentives are disbursed. This feature eliminates risk and assures a positive return on investment to the State and citizens of Utah. GOED contracts with the Economic Development Corporation of Utah (EDCUtah) to help identify and recruit companies to the Governor Huntsman reviews plans for the new Procter & Gamble State. In addition to proactive and strategic facility in Box Elder County. recruitment services, EDCU also assists companies through the relocation process, including site selection, interaction with local government entities and data gathering. EDCU does not represent the state with regard to incentive commitments as this is a governmental function handled exclusively by GOED. GOED works in close partnership with EDCU to make a company’s relocation to Utah as smooth as possible. During the recent 2008 General Session, the Utah State Legislature passed SB185, which modified the Economic Development Tax Increment Financing (EDTIF) incentive from a tax rebate to a refundable tax credit. The Legislature also passed HB20 which changed the definition of high paying jobs from median wage to average wage.
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Governor’s Office of Economic Development • Annual Report 2008
