This story is a part of The Salt Lake Tribune’s ongoing dedication to establish options to Utah’s greatest challenges by the work of the Innovation Lab.
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Utah has awarded as much as $69 million in future tax breaks to a Logan firm that plans to supply batteries for flying automobiles and different aerospace functions at a brand new manufacturing unit that may rent as many as 3,100 new workers over the following 9 years.
Electrical Energy Methods has been advertising battery techniques for aviation for years, having moved to Logan from California 5 years in the past after the state gave the corporate its first incentive. This time, the corporate plans to construct a 700,000-square-foot manufacturing plant within the Logan-North Logan space.
CEO Nathan Millecam stated EPS has extra expertise than anybody in designing battery techniques able to powering plane, together with small, car-size craft. “We name them electrical vertical takeoff and touchdown autos.”
The corporate at the moment employs 135 folks in Logan. It sells battery energy techniques to Boeing, NASA and Bell helicopters, amongst others, Millecam stated EPS stated.
“We plan to speculate lots of of hundreds of thousands in capital expenditures to begin manufacturing,” he instructed the Go Utah board that granted the tax incentive Thursday. “… That is probably the most superior battery manufacturing on the earth.”
EPS spokesperson Abbie Bean stated the three,100 jobs, which will probably be phased in over 9 years, could have a median wage of $57,000 plus advantages.
“We’re additionally constructing our personal electrical plane and could have a primary flight hopefully this 12 months, and that’s being constructed at our facility in Logan,” she added.
“It is a actual distinction maker for Cache Valley,” stated Kirk Jensen, financial improvement director for Logan.
The grant from the Governor’s Workplace of Financial Alternative got here from the Rural Financial Improvement Tax Incentive Financing program (REDTIF) and was permitted by the Go Utah board appointed by the governor. Like all state tax incentives, it’s a “post-performance” grant. No funds are fronted to the corporate. As a substitute, it should show it has paid new workers the goal wages to obtain the revenue tax breaks on future revenue.
As projected, the corporate can pay out $867 million in wages over the 9 years, which might generate $279 million in new state tax income. Beneath the grant, EPS would have the ability to preserve 25% of that tax income, which is about $69 million.
“I really like every thing you’re doing,” Susan Johnson, Go Utah board chair, instructed EPS executives at Thursday’s assembly. She stated the financial profit will prolong past EPS as different firms provide the manufacturing unit.
“We see a provide chain getting constructed round us,” Millecam stated.
“EP Methods’ enlargement will assist Utah develop its battery-powered business,” stated Theresa Foxley, president and CEO of the Financial Improvement Company of Utah. “The corporate has established itself because the chief within the electrified aeronautics area, and we’re proud to name them a Utah model.”