Lucid Software may earn up to 20 percent of the new state taxes they will pay over the five-year life of the agreement in the form of a post-performance Economic Development Tax Increment Finance (EDTIF) tax credit rebate. As part of the contract with Lucid Software, the GOED Board of Directors has approved a post-performance tax credit rebate not to exceed $726,269. Each year as Lucid Software meets the criteria in its contract with the state, it will earn a portion of the total tax credit rebate.
When Lucid Software, a tech company founded in South Jordan, Utah, received its second round of Venture Capital funding, the financiers wanted them to move their operations to the Bay Area for the tech talent available there. Lucid’s executive team, all of whom have roots in Utah’s tech sector, preferred to keep their business local. They reached out to EDCUtah and GOED for assistance in making the case to their investors.
Lucid was already a success, employing approximately 150 people in the state. Their new expansion will create an additional 339 jobs over five years in one of Utah’s highest-paying industries.
The project began on September 2, 2016. EDCUtah aided the company in finding cost comparison data between the Wasatch Front and the Bay Area and provided workforce data on sales, marketing, and customer support jobs that they could use to build their case for talent recruitment purposes. EDCUtah also helped them through the incentive process, and connected them with South Jordan City. In addition to its world famous recreational opportunities, Utah’s competitive cost of living is a huge draw for talent attraction, especially around lower taxes and lower real estate costs. EDCUtah will continue to work with the company in the initial stages of recruiting additional out-of-state talent.
Lucid Software announced the expansion on December 8, 2016 and will expand in its already existing facility.