SALT LAKE CITY — The Utah Governor’s Office of Economic Opportunity (GOEO) awarded Karman Space & Defense, opens in a new tab (NYSE: KRMN) a post-performance tax reduction for its expansion in Salt Lake County. The corporate incentive is part of the state’s Economic Development Tax Increment Financing (EDTIF) program.
As part of the agreement, Karman Space & Defense plans to add 100 new, high-paying jobs and invest $28,502,500 in Utah during the next 20 years.
“Strategic incentives like these give Utah an advantage in attracting high-impact projects that establish essential infrastructure and advanced manufacturing in our state,” said Jefferson Moss, executive director of GOEO. “By supporting long-term investments in sectors like aerospace and defense, we cultivate a resilient economy that offers high-paying job opportunities in fields that are well-positioned for the future.”
Karman Space and Defense specializes in providing critical, next-generation systems for the space and defense industries, with a focus on propulsion, payload protection, and hydro/aerodynamic interstage systems. This economic incentive makes Utah a preferred location for the Company’s UAS launcher and nozzle production operation as the company scales its capacity.
“We are expanding our presence in Utah to increase production for key programs that protect the U.S. and its allies,” said Jonathan Beaudoin, chief operating officer of Karman Space & Defense. “Our new manufacturing hub in the Salt Lake area will place us closer to customers, provide access to a skilled talent pool, and position us for continued growth. We are grateful for the support we have received from Governor Cox, GOEO, EDCUtah, and Mayor Lang as our presence in Utah grows.”
“EDCUtah is proud to support companies that strengthen Utah’s aerospace and defense ecosystem,” said Ryan Starks, executive director of EDCUtah. “Karman’s systems play an important role in a wide range of space and defense applications, and their presence reinforces the strength of this industry in our state. Many of Karman’s suppliers and customers are already located in the Salt Lake area, and this expansion will further connect and bolster our regional ecosystem. We commend the continued growth of Utah’s aerospace and defense sector and the strong collaboration that makes it possible.”
“We are excited to have Karman Space & Defense bring their groundbreaking technology to West Valley City,” said West Valley City Mayor Karen Lang. “Companies continue to come to West Valley City because of our strong business community and our easy access location along the Wasatch Front. Karman will add to the growing list of integral West Valley City companies in the Aerospace and Defense sector. We appreciate this investment in our city by Karman and how it will strengthen our local economy and create new job opportunities for our residents.”
Tax Credit Projections
| Timeline: | 20 years |
|---|---|
| Jobs: | 100 |
| Wages: | $165,262,670 |
| New state tax revenue: | $62,505,310 |
| EDTIF new state tax credit: | 26% |
Learn more about the state’s post-performance EDTIF program here.
About the Utah Governor’s Office of Economic Opportunity
Under Gov. Spencer J. Cox’s direction, the Governor’s Office of Economic Opportunity provides resources and support for business creation, growth, and recruitment. It also drives increased tourism and film production in Utah. As stewards of the world’s best economy and quality of life, the Economic Opportunity office utilizes federal, state, and private sector resources to administer programs in areas demonstrating the highest potential for economic development and the most opportunity for Utahns.
About Karman Space & Defense
Karman Space & Defense is a leader in the rapid design, development and production of critical, next-generation system solutions that align with the U.S. Department of War’s core mission priorities and the nation’s accelerating demand for access to space. Building on nearly 50 years of success, we deliver Payload Protection Systems, Hydro/Aerodynamic Interstage Systems, and Propulsion & Launch Systems to more than 80 prime contractors supporting more than 130 space and defense programs. Karman is headquartered in Huntington Beach, CA, with multiple facilities across the United States. For more information, visit our website, www.karman-sd.com.