Salt Lake City — The Utah Governor’s Office of Economic Opportunity (Go Utah) awarded tZERO Group, Inc. a temporary, marginal tax reduction for its expansion in Utah. The post-performance corporate incentive is part of the Legislature’s Economic Development Tax Increment Financing (EDTIF) program.
As part of the agreement, tZERO Group plans to bring up to 80 new high-paying jobs and invest over $2.2 million in Utah during the next eight years.
“We’re happy to welcome tZERO Group back to Utah. tZERO has created an innovative and regulated platform to help make digital securities more accessible to users,” says Dan Hemmert, the Office of Economic Opportunity’s executive director. “We are excited for tZERO’s future as the company continues to shape blockchain technologies.”
tZERO Group and its broker-dealer subsidiaries provide an innovative liquidity platform for private companies and assets. The company aims to democratize access to private capital markets by focusing on developing and adopting digital securities in a regulatory-compliant environment. The company offers institutional-grade solutions for issuers looking to digitize their capitalization table through blockchain technology and trade on a regulated alternative trading system.
tZERO Group may receive up to 15 percent of the additional state taxes it will pay over the eight-year life of the agreement in the form of a Utah Legislature-authorized Economic Development Tax Increment Financing (EDTIF) tax credit (U.C.A. 63N-2-106(2)). Each year that tZERO Group meets the criteria in its contract with the state, it will qualify for a portion of the total tax credit.
“While our involvement in this project was limited, we’re pleased that tZERO Group has chosen Utah as the location for its new headquarters,” says Theresa A. Foxley, president and CEO of EDCUtah. “Utah has proven itself as a solid investment choice for both established and disruptive financial services companies to locate their operations.”
Tax Credit Projections
Timeline: 8 years
Capital investment: $2.25 million
Jobs: 80
Wages: $56,687,325
New state tax revenue: $9,383,945
EDTIF new state tax credit: 15 percent
Learn more about the state’s post-performance EDTIF program here.
About the Utah Governor’s Office of Economic Opportunity
Under Gov. Spencer J. Cox’s direction, the Utah Governor’s Office of Economic Opportunity (Go Utah) provides resources and support for business creation, growth, and recruitment. It also drives increased tourism, film production, outdoor recreation, and mixed martial arts in Utah. Utilizing state resources and private sector contracts, the office administers programs in economic areas demonstrating the highest potential for development and the most opportunity for Utahns.