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SALT LAKE CITY — New incentives announced by the Governor's Office of Economic Development are expected to add 900 jobs to the Utah economy over the next two decades.
On Thursday, the GOED board of directors approved incentives for two companies that are planning to exapnd their Utah presence over the next 20 years.
EMC Corp. announced it would expand its Draper operations, creating 700 jobs and providing an estimated $62 million in capital investment. EMC is a provider of information technology focused on cloud computing, big data analytics and security that operates one of eight global facilities in Draper.
The company’s Utah site provides a variety of IT and client services, including serving federal agencies and international clients.
As part of its 10-year expansion plan, the total wages — including medical benefits — are expected to exceed 125 percent of the county wage, with projected new state wages over the life of the agreement forecast to be approximately $207.5 million. Projected new state tax revenues, as a result of corporate, payroll and sales taxes, are estimated at $9.1 million over the decadelong contract period.
As part of the contract, the GOED board approved up to a maximum tax credit of nearly $3.9 million in the form of post-performance Economic Development Tax Increment Finance incentive — 25 percent of the new state taxes the company will pay over the life of the agreement. Each year as EMC meets the criteria in the contract, the firm will earn a portion of the total tax credit incentive.
“EMC has been a major partner in building Utah’s Silicon Slopes, and we are grateful for their positive impact," Gov. Gary Herbert said.
Procter & Gamble
GOED also approved an incentive for Procter & Gamble to expand its operation in the Bear River area of Box Elder County. The project is expected to bring up to $500 million in capital investment, along with as many as 200 new jobs over 20 years.
The company operates a paper products manufacturing facility in Box Elder County. The expansion will create up to an additional 200 jobs over the next 20 years.
The total wages, including medical benefits, are expected to exceed 100 percent of the Box Elder County wage, with projected new state wages over the life of the agreement expected to be nearly $198 million and projected new state tax revenues estimated to be about $37.2 million over the 20-year period.
As part of the contract, the GOED board approved a maximum tax credit of $11.1 million in the form of post-performance Economic Development Tax Increment Finance incentive, which is 30 percent of the new state taxes the company will pay over the 20-year life of the agreement.
Each year Procter & Gamble meets the criteria in its contract, the company would earn a portion of the total tax credit incentive.
“This expansion is a significant boost for our state’s manufacturing sector, as well as the local communities where they operate,” Herbert said.