Manufacturing company Vitalpax to expand into rural Utah

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Salt Lake City – The Governor of Utah’s Office of Economic Opportunity (Go Utah) has granted Vitalpax, Inc. a temporary marginal tax reduction for its expansion into rural Utah. As part of the agreement, Vitalpax plans to create up to 40 new high-paying jobs and invest $5 million in rural Utah over the next 10 years.

This post-performance incentive for businesses is part of the Legislature’s Economic Development Tax Increment Funding (EDTIF) program. Eligible companies work with the office of economic opportunities to define performance criteria. Once the bureau confirms that these criteria have been met, as required by law (UCA 63N-2-106(2)), businesses may receive a refund of a percentage of new additional state taxes they have paid until the expiry of their contract.

Utah does not provide upfront money for business retention and recruitment. Instead, the state offers a post-performance tax credit after the company has met specific obligations, including capital investment, new high-paying jobs, and additional tax payments of the state.

By setting up in La Verkin, Vitalpax is eligible for the rural modifications of the state’s EDTIF tax credit program. Tax credits are approved by Go Utah’s Governor-appointed Executive Director, with guidance from the Go Utah Board of Directors and support from local communities. The tax credit program operates under statutory statute and the Cox-Henderson administration’s vision of economic opportunity for all Utahns.

“We are excited to see Vitalpax continue to grow in La Verkin, Utah,” said Dan Hemmert, executive director of the Office of Economic Opportunity. “The company’s dedication to its local community was evident throughout our discussions, and we wish Vitalpax continued success.”

Vitalpax is a Utah-based company specializing in the contract manufacturing of dietary nutritional supplements. Current services provided are end-to-end research and development, testing, sourcing and sourcing, manufacturing and delivery of the final nutritional supplement. These can include delivery forms such as tinctures, capsules, tablets, powders, juices, etc.

“Vitalpax has a phenomenal team of qualified leaders and experts in the dietary supplement industry,” says Dalyon Ruesch, CEO of Vitalpax. “With our combined 75 years of experience in contract manufacturing, we have created a complete turnkey solution where customers can get everything they need to build a successful brand in one place.”

Vitalpax can receive up to 30% of the additional taxes it will pay over the 10-year life of the agreement in the form of a Rural Economic Development Tax Increment Finance (REDTIF) tax credit authorized by the legislature from Utah. Each year that Vitalpax meets the criteria of its contract with the State, it will benefit from a part of the total tax credit.

“Vitalpax has been a mainstay in Washington County, and its manufacturing and distribution expansion will continue to diversify the economy of the city of La Verkin,” said Theresa A. Foxley, president and CEO of the Economic Development Corporation of Utah. “The expansion is well aligned with Governor Cox’s goal of encouraging job growth and investment across the state.”

Go Utah tracks incentivized businesses in a dashboard available on this webpage. Public data shows when the tax credit was granted and the number of jobs promised, new state salaries, new state revenues, projected capital investments and the maximum tax credit. It reports on the duration of the contract and the temporary marginal tax reduction that the company can benefit from if it meets its obligations. The table also shows whether the company has an active agreement, the percentage of new state revenue assessed, and the total tax credit used.

Since the creation of the EDTIF in 2005, approximately 50% of companies benefiting from an incentive have claimed a post-performance tax credit by entering into a contract with the State. The Utah Legislature authorized REDTIF amendments beginning in July 2021 to increase opportunities for business expansion and recruitment in rural communities across the state.

The REDTIF amendments provide an effective and efficient way for rural Utah to engage in business retention and recruitment while ensuring that taxpayers receive the value of the limited tax credits offered. These changes support the country’s main economy and provide economic opportunities for Utahans.

Projections of tax credits

Period: 10 years

Capital investment: $5 million

Jobs: 40

Salaries: $11,061,593

Projected New State Tax Revenue: $1,064,656

New state tax credit REDTIF: 30%

Learn more about post-performance state REDTIF changes here.

About the Utah Governor’s Office of Economic Opportunity

Under the direction of Governor Spencer J. Cox, the Governor of Utah’s Office of Economic Opportunity (Go Utah) provides resources and support for starting, growing, and recruiting businesses. It also leads to an increase in tourism, film production, outdoor recreation, and mixed martial arts in Utah. Using state resources and contracts with the private sector, the bureau administers programs in economic areas that present the greatest development potential and opportunity for Utahans.

About Vitalpax

Vitalpax is one of the United States’ largest turnkey developers and manufacturers of high-quality health and wellness supplements. Based in La Verkin, UT, Vitalpax is a one-stop-shop for the formulation, development, manufacturing, packaging, and shipping of a wide variety of nutraceutical capsules, tablets, powders, and other dosage forms for customers worldwide. . Known for its extraordinary quality and innovation, the company maintains the highest standards recognizing its exceptional manufacturing capabilities, including NSF, USDA Organic, Halal and Kosher certification. For more information, visit vitalpax.com. For press or business inquiries, please contact us at [email protected] or call +1 (866) 844-2588.


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