Utah’s Information Technology and Software industry is thriving, and with the assistance of the Governor’s Office of Economic Development incentive program, Instructure, Inc., announced today that it will expand in Utah.
“The education industry of Utah benefits from keeping companies like Instructure here at home. Education is my number one priority and a cornerstone of our economic development,” Governor Gary Herbert said. “The involvement of key players like Instructure is vital to the highly-skilled and well-educated workforce Utah has the capacity to produce."
Instructure estimates that it will bring 655 potential new jobs to Utah over the seven-year lifetime of the agreement. The average annual wage and benefits of these newly incented positions will be 125 percent of Salt Lake County’s yearly annual wage, including benefits. These wages and benefits will total about $235 million throughout the seven-year agreement with the state.
Instructure’s headquarters are currently located in Sandy, Utah; however, the company plans to expand in Cottonwood Heights.“Instructure is growing faster than we anticipated,” said Josh Coates, CEO of Instructure. “At the close of 2010 we had a handful of employees and almost no revenue to speak of. Today we are closing the year with 200 employees and nearly 300 educational institutions under contract, including all of Utah’s public institutions of higher education.”
To fund the company’s expansion, Instructure will make a $2.1 million capital investment. It will also pay over $9.4 million in new state taxes over the seven-year life of the agreement.
“The GOED Board of Directors has approved a $1,892,969 Economic Development Tax Increment Financing (EDTIF) post-performance refundable tax credit, or 20 percent of the new state revenue paid by Instructure over the seven-year lifetime of the agreement.
Instructure is part of Utah’s Information Technology and Software Development Economic Cluster. Utah’s IT cluster is the largest industry cluster statewide and has been growing in Utah for nearly three decades. The cluster includes over 48,000 companies statewide. Utah Pulse