Breeze Aviation granted post-performance tax increment
On Thursday the Utah Governor’s Office of Economic Opportunity awarded Breeze Aviation Group, Inc., a temporary, marginal tax reduction for its expansion in Utah.
Breeze announced May 6 that it will make the new Provo Airport its home base airport in the state. It will start by housing four planes at the airport and flying to four different locations.
David Neelemen, founder and CEO of Breeze, is hoping to also bring a customs desk to Provo to allow for international flights, specifically Cabo San Lucas, and perhaps other locations in the future.
The post-performance corporate incentive is part of the Legislature’s Economic Development Tax Increment Financing program.
As part of the agreement, Breeze Airways plans to bring up to 78 new high-paying jobs and invest $8 million in Utah over the next five years.
“This significant expansion from Breeze brings jobs, connects Utahns through new flight routes to new destinations, and provides opportunities for people to visit Utah for work and play,” said Dan Hemmert, the Office of Economic Opportunity’s executive director. “We’re excited to see this Utah company grow, and we’re even more excited to take advantage of its budget-friendly airfare.”
Breeze Airways is a Utah-based airline that began flying in the summer of 2021. The company focuses on offering nonstop flights and low fares on routes not frequently found with other airlines. By flying nonstop routes with little or no competition, Breeze Airways seeks to open up travel to wider audiences.
“It’s been the question on everyone’s lips since we first opened our headquarters — when are you flying from Utah,” Neeleman said. “We’re excited to continue growing and hiring from here, and now flying from Utah too. The beautiful, newly renovated Provo airport will give our guests an easy way to travel to both coasts and provide a wonderful ‘home base’ for Breeze.”
Breeze Airways may receive up to 15% of the additional state taxes it will pay over the five-year life of the agreement in the form of a Utah Legislature-authorized Economic Development Tax Increment Financing tax credit. Each year that Breeze meets the criteria in its contract with the state, it will qualify for a portion of the total credit.
“We’re encouraged by Breeze Airways selecting Utah as a national training center for its pilots and maintenance staff,” said Theresa A. Foxley, president and CEO of the Economic Development Corporation of Utah. “Workforce development is critical to any industry, and we anticipate Breeze will find competitive operating costs and logistical advantages citing this center here.”
Breeze will begin daily flights out of Provo starting Aug. 4 and through October and November. Their initial flights will be to San Francisco, San Bernardino International in California, Las Vegas, Los Angeles and Westchester, New York.