SALT LAKE CITY — The Governor's Office of Economic Development announced Thursday that two companies received approval for over $1.7 million in tax incentives that will create nearly 480 jobs in the Beehive State.
Packsize International announced the on-demand packaging company will expand its Utah operations, adding up to 354 jobs while making an estimated $9.2 million in capital investment over a seven-year period. The Salt Lake City company has operations in over 25 countries.
Founded in 2002, Packsize developed an on-demand packaging system that helps businesses save an average of 20 percent to 30 percent in corrugated packaging expenses, a news release stated. The system includes custom box-making hardware and software, along with other services that reduce inventory requirements, increase handling and transportation efficiencies and minimize wasted shipping space.
“Utah’s bright entrepreneurial community and labor market make it attractive for Packsize to compete globally from here,” said Packsize CEO Hanko Kiessner.
Under the terms of the agreement, the total wages in aggregate are required to exceed 110 percent of the county average wage, with projected new state wages over the life of the agreement estimated to be $125 million. In addition, projected new state tax revenues resulting from corporate, payroll and sales taxes are estimated to be $6 million over seven years.
Packsize may earn up to 20 percent of the new state taxes it will pay over the seven-year life of the agreement in the form of a post-performance Economic Development Tax Increment Finance tax credit rebate. As part of the contract, the GOED board of directors approved a post-performance tax credit rebate not to exceed $1,202,029. Each year as Packsize meets the criteria in its contract with the state, the company will earn a portion of the total tax credit rebate.
The GOED board also approved a post-performance tax credit maximum rebate of $495,190 for Mueller Industries, a copper and brass manufacturer based in Tennessee with local operations in Iron County.
The project will create up to 125 jobs over the next eight years with total wages in aggregate required to exceed 110 percent of the county average wage, a news release stated. The projected new state wages over the life of the agreement are forecasted to be $31 million, with estimated new state tax revenues to be $2.5 million over eight years.