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Business expansions to yield over 500 new jobs

The Utah Governor’s Office of Economic Development Board of Directors approved two new agreements that are expected to produce over 500 new jobs and generate $25 million in new state revenue through business expansion.
The Utah Governor’s Office of Economic Development Board of Directors approved two new agreements that are expected to produce over 500 new jobs and generate $25 million in new state revenue through business expansion.
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SALT LAKE CITY — The board of directors of the Utah Governor’s Office of Economic Development has approved two new agreements that are expected to produce over 500 new jobs and generate $25 million in new state revenue through business expansion.

Intermountain Electronics will expand in Utah, adding up to 289 jobs and $21.5 million in new state revenue and an estimated $12.5 million in capital investment over the next 15 years, the economic development office and Carbon County announced Thursday.

Headquartered in Price, Intermountain Electronics designs and manufactures custom power distribution equipment for industrial customers, a news release states. The company originally provided services to the coal mining industry in Carbon and Emery counties, but since 2010, the firm has diversified into the oil and gas, utility, renewable energy and data center sectors as well.

“We have deep roots in Carbon and Emery counties, and are excited to proceed with this expansion in Price,” said Intermountain Electronics CEO Phil Blackburn.

Under the terms of its agreement with the state, the company will create up to 289 jobs over 15 years with total wages in aggregate required by statute to exceed 110% of the average county wage. Projected new state wages over the life of the agreement may total up to $251,564,824, including wages, salaries, bonuses and other taxable compensation.

Projected new state revenues from corporate payroll and sales tax are estimated to be $21,582,270 over the agreement period.

Intermountain Electronics may earn up to 30% of the new state taxes they will pay over the life of the contract in the form of a postperformance Economic Development Increment Finance tax rebate. The economic development board approved a post-performance tax rebate not to exceed $6,474,681. Each year the company meets the agreed-upon criteria, it will earn a portion of the total tax credit rebate.

The board also announced that Castlight Health Inc. will open a new location in Utah adding up to 235 jobs and $4.6 million in new state revenue and an estimated $3.1 million in capital investment over the next five years.

Castlight Health offers a comprehensive health navigation platform that guides users to their best available health care resources, resulting in lower health care costs, higher engagement and improved outcomes.

“We are excited to open Castlight’s Center of Excellence in Utah,” said Siobhan Nolan Mangini, president of Castlight Health. “The Salt Lake City area provides access to a talented workforce that will enable us to deliver innovative health care technology solutions to our customers.”

The company is expected to create up to 235 jobs statewide over the next five years with total wages in aggregate required by statute to exceed 110% of the average county wage. Projected new state wages over the life of the agreement may be up to $115,887,125, including wages, salaries, bonuses and other taxable compensation.

Projected new state revenues, as a result of corporate payroll and sales tax, are estimated to be $4,601,934 over the five-year period.

Castlight Health may earn up to 20% of the new state taxes they will pay over the life of the agreement in the form of a post-performance Economic Development Increment Finance tax rebate. The board approved a post-performance tax rebate not to exceed $920,387. Each year the company meets the criteria in its contract, it will earn a portion of the total tax credit rebate.