The Utah Governor’s Office of Economic Development (GOED) is pleased to announce that Carvana plans to open an Inspection and Reconditioning Center in Tooele, planning to add nearly 200 new jobs in the state in the next seven years.
“Carvana has changed the car-buying experience, especially during a worldwide pandemic,” said Dan Hemmert, GOED’s executive director. “This expansion will allow the company to serve the state and the Southwest region better as well as create almost 200 jobs. We wish Carvana the best success as they continue to grow.”
Carvana is a national, leading online auto retailer, offering a 100% online car-buying and selling experience with great prices in a no-pressure environment: from the comfort of home or on the go via mobile device. Customers determine when, where and how they get their next car, saving them valuable time and money by allowing them to skip the traditional dealership experience.
Carvana may earn up to 20% of the new state taxes it will pay over the seven-year life of the agreement in the form of a Utah Legislature-authorized Economic Development Tax Increment Finance (EDTIF) tax credit. The GOED Board has approved a post-performance tax credit not to exceed $757,736. Each year that Carvana meets the criteria in its contract with the state, it will earn a portion of the total tax credit.
“Carvana is a great win for Tooele City, thanks to the hard work of Mayor Winn and Jared Stewart,” said Theresa A. Foxley, president and CEO of the Economic Development Corporation of Utah. “Furthermore the company has committed to the community through a significant investment in workforce development. Carvana employees will have substantial means to better themselves through training and education.”
State of Utah Tax Credit Projections by the Numbers
|Capital Investment||$42.5 million|
About Utah Corporate Incentives
The Utah Legislature has authorized economic development incentives in the form of post-performance tax credits. Eligible companies work with the Utah Governor’s Office of Economic Development to outline specific performance criteria. Once GOED confirms those criteria have been met, according to statute (U.C.A. 63N-2-106(2)), companies can receive a refund of up to 30% of the state taxes they paid for up to 20 years. The contract with the state is post-performance; it only provides a state tax credit if the company meets its obligations.