OGDEN — A food manufacturing company that develops oat-based drinks and foods is getting a state tax break to open up shop in Ogden, bringing with it 50 new jobs.
The Utah Governor’s Office of Economic Development announced Thursday that Oatly Inc. will open a new factory at Boyer Business Depot Ogden, planning to add up to 50 jobs and $40 million in capital investment over the next seven years.
Oatly, which according to a GOED press release, is “dedicated to helping people eat and drink healthier without taxing the planet’s resources in the process,” will be eligible to earn back 10 percent of the new state taxes they will pay as part their deal with the state.
In order to receive the money, the company must provide the 50 jobs with total wages in aggregate exceeding 110 percent of the average Weber County wage.
The tax credit rebate would be capped at $295,463 according to GOED, with Oatly receiving a portion of the total each year it meets the criteria in its contract with the state.
GOED says the projected new state wages over the life of the agreement could be as much as $17.3 million, which includes wages, salaries, bonuses and other taxable compensation.
New state tax revenues (from corporate, payroll and sales taxes) are estimated to reach $2.9 million over the life of the seven-year deal.
According to GOED’s release, the 25-year-old company’s flagship product is their oatmilk, an oat-based drink produced using patented enzyme technology that turns oats into a nutritional liquid.
Mayor Mike Caldwell said the company’s commitment to healthy lifestyles aligns well with Ogden’s values and outdoor recreation efforts.
The Utah Legislature previously authorized the GOED post-performance tax rebates. Eligible companies work with the office to outline specific performance criteria. When GOED confirms the criteria has been met, companies can receive a refund up to 30 percent of the state taxes they paid for up to 20 years.