Economic development • Tax credits target Frontier Communications, Exeter Finance.
This is an archived article that was published on sltrib.com in 2013, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.
The state offered financial incentives Thursday to two companies, saying it expects the tax credits will lead to the addition of 1,100 jobs to Utah's economy over the next decade.
The Governor's Office of Economic Development approved post-performance tax credits for:
Frontier Communications Corp. of Stamford, Conn. • The company plans to open a customer-service center next year in Utah County. Frontier provides broadband, voice, satellite video and broadband, wireless Internet data access, data security solutions, bundled offerings and specialized packages for small business and home offices.
Exeter Finance Corp. of Irving, Texas • Exeter works with franchised automobile dealers around the country to finance vehicle purchases.
"Demand for Utah's productive workforce continues to grow," Gov. Gary Herbert said in a prepared statement.
Frontier will invest about $7 million in the new facility and will receive a tax credit worth up to $2.2 million to expand operations in Utah, one of 27 states where it operates.
The company's 550 new jobs are expected to yield $245 million in wages and $10.9 million in state taxes over the decade. That is about 20 percent of the net taxes Frontier is projected to pay during the contract's 10-year life, said GOED spokesman Michael Sullivan, noting the company will earn part of the tax credit incentive each year it reaches its goals.
Hiring will begin in February. Job applications may be submitted online at http://www.frontier.com/careers.
"Our expansion in Utah will offer premium customer support of all things digital for consumers and small businesses," said Kelly Morgan, a Frontier vice president.
Exeter has not decided where to locate its facility, which also will employ 550, Sullivan said. The state is providing a $2.3 million tax incentive, anticipating Exeter will invest $2.1 million in the facility and, over the next decade, will pay $260 million in wages and $11.4 million in new state taxes.
"Utah's workforce has proven to be fiscally prudent and responsible," said Spencer Eccles, GOED executive director. "It's due to these attributes that financial companies such as Exeter see Utah as a good fit for business expansion. The strength of the financial services cluster reinforces Utah's diverse economy."
In both cases, the companies are expected to pay employees at least 125 percent of the county's average annual wage, including benefits.