Economic development board approves incentives to create 135 jobs
Scott G. Winterton, Deseret News Archives
SALT LAKE CITY — The Governor's Office of Economic Development on Thursday approved tax incentives that would allow Pactiv and Wilson Electronics expand their presence in Utah and create at least 135 new jobs.
Pactiv is one of the largest manufacturers and distributors of food packaging and food service products in the world. The company plans to make a capital investment of approximately $52 million to support establishment of a new manufacturing and distribution facility in Salt Lake County.
The project is expected to bring 60 new jobs to Utah that will pay 125 percent of the county's average wage and include benefits. Headquartered in Lake Forest, Ill., Pactiv is a privately held firm that currently employs more than 11,000 people around the world.
Property improvements and personal property equipment for manufacturing and warehouse activities will make up the bulk of the capital investment. The project is expected to generate an estimated $28.8 million in new state wages and about $5.8 million in new state taxes over the 10-year life of the agreement.
As part of a contract with Pactiv, the GOED board of directors approved a maximum tax credit of $871,010 in the form of a post-performance Economic Development Tax Increment Finance incentive, which is 15 percent of the net taxes Pactiv will pay over the 10-year life of the agreement.
Every year that Pactiv meets the criteria in its contract with the state, the company will earn a portion of the tax credit incentive.
Meanwhile, Wilson Electronics plans to expand its existing facility in Washington County. The company designs and manufactures a variety of amplifiers, antennas and related components to improve communications for cellphones and cellular data devices.
Wilson Electronics expects to add 75 to 150 professional and production positions over the next five years. On average, the new jobs will earn 125 percent of the Washington County average wage, including benefits.
New state wages over the five-year life of the agreement are forecasted to be approximately $22.4 million. The expansion is also expected to lead to an estimated capital investment of $2.7 million. Over the five-year period, the expansion is estimated to generate new state taxes of $1.7 million.
As part of the agreement with Wilson Electronics, the GOED board approved a maximum tax credit of $266,312 in the form of a post-performance Economic Development Tax Increment Finance incentive, which is 15 percent of the net taxes the company will pay over the five-year life of the contract.
Each year as Wilson Electronics meets the criteria in its contract, the firm will earn a portion of the tax credit incentive.
E-mail: email@example.com, Twitter: JasenLee1
- Hillcrest students, others show support for...
- Police: 2 teens killed in Sandy crash...
- 'Another piece to the puzzle': Census reveals...
- Lindsey Stirling reflects on global audience,...
- New details in court reveal alleged shooter...
- Sen. Orrin Hatch calls HBO story on dietary...
- Warrant issued for Vernal mother accused of...
- First prison relocation open house changes...
- How do Utah wages stack up nationally? 50
- Koch brothers group launches Utah chapter 42
- First prison relocation open house... 38
- Congressional delegation not impressing... 32
- Legalize medical marijuana? Utahns... 28
- S.L. City Council, mayor seek... 28
- Prosecutors file new charge against... 20
- Utah's air pollution problem: What does... 17