Corporate Recruitment and Incentives
CORPORATE RECRUITMENT AND INCENTIVES
U.C.A. 63N-2-101 (EDTIF) U.C.A. 63N-3-103 (IAF) Corporate Recruitment accelerates business growth and job creation through sustainable, cluster-focused domestic and international corporate expansion and relocation. Financial incentives are available for business relocation and expansion for select companies that create new, high-paying jobs to help improve the standard of living, increase the tax base, attract and retain top-level management, and diversify the state economy. Incentives are offered as either tax credit rebates or grants. The GOED Board and executive director determine incentive amount and duration based on statutory guidelines and evaluation criteria including the financial strength of the company, number and salary of jobs created, amount of new state tax revenue, long-term capital investment, competition with other locations and whether the company is a headquarter or in a targeted industry cluster. Incentives are based on the following three pillars of success and sustainability: 1. Post-performance — Incentives are disbursed after the company has met contractual performance benchmarks, such as job creation and payment of new state taxes. 2. Single Taxpayer — Incentive amounts are based on new state taxes generated by the project. 3. Competition — Incentives must make Utah competitive with other locations.
FY 2016 Summary FY 2016 was a banner year for Corporate Recruitment. GOED offered $51,611,385 of EDTIF incentives to companies forecasting the creation of 9,636 of jobs, up to $226,419,783 in new state revenue and capital investment in our community of $305,081,000 over the next 15 years. GOED strives to decrease the incentive term lengths and percentages. The FY 2016 averages are the lowest yet, with an average term of 7 years and an average percentage rebate of 20 percent.
Governor’s Office of Economic Development • 2016 Annual Report • www.business.utah.gov
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