Months after Utah economic officials gave software company Domo a tax incentive worth up to $23 million, FOX 13 reports that the state has launched an investigation related to comments CEO Josh James made at a recent breakfast with legislators.
James suggested he was offered millions for his company to stay in Utah even though he had no plans to leave, FOX 13 reports.
Dan Hemmert, executive director of the Governor’s Office of Economic Opportunity, confirmed to FOX 13 that the state is investigating Domo. In a statement to the station on Friday, Domo said it did not breach any agreements.
“We are fully cooperating with GOEO and are confident that we did not breach any of our obligations under the contract and that all representation and warranties by us were true and correct in all material respects,” the company said.
The investigation comes as Utah leaders are revising and dialing back incentives like the one given to Domo earlier this year.
The company said earlier this year that it would expand its Utah location and planned to add up to 2,230 new high-paying jobs in the state in the next 10 years, according to state economic officials. Officials estimated the tax revenue over that period at $93,258,800, they said in an online announcement of the deal.
Domo may earn up to 25% of that amount back; each year that Domo meets the criteria in its contract with the state, it will earn a portion of the total tax credit, the economic opportunity office said.
“This expansion is a big win for Utah, with the potential to create thousands of jobs for the state,” Hemmert said in the announcement. Domo, a cloud-based software company, was founded in Utah County in 2010 and went public in 2018, it said.
See more at FOX 13.
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