TOOELE, Utah (ABC4) – An online auto retailer says it plans to add nearly 200 new jobs to Utah by 2028.
The Utah Governor’s Office of Economic Development (GOED) says Carvana plans to open an Inspection and Reconditioning Center in Tooele, adding nearly 200 new jobs.
“Carvana has changed the car-buying experience, especially during a worldwide pandemic,” says 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 offers an entirely-online car-buying and selling experience. The service allows you to determine when, where, and how you get your next car.
GOED says 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 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, according to GOED.
“Carvana is a great win for Tooele City, thanks to the hard work of Mayor Winn and Jared Stewart,” says 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.”
GOEED provided this look at the tax credit projections by the numbers:
Tax revenue: $3,788,682
Capital investment: $42.5 million
Timeline: 7 years
The Utah Legislature has authorized economic development incentives in the form of post-performance tax credits. Eligible companies work with the GOED to outline specific performance criteria.
Once GOED confirms those criteria have been met, 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.