Anson Resources has received approval for a tax credit worth approximately $212m (A$295.38m) from the Utah Governor’s Office of Economic Development (GOED) to support its Green River Lithium Project in Utah’s Paradox Basin, US.
The project is owned by A1 Lithium, a fully owned US subsidiary of Australian-listed Anson Resources.
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The tax credit has been granted to the company under the state’s Rural Economic Development Tax Increment Financing (REDTIF) programme, based on estimated incremental tax revenue over a projected 20-year operating period.
According to the agreement, A1 Lithium plans to create 138 new high-paying jobs over the coming 25 years.
The credit represents 50% of the $425m in projected Utah state tax revenue over two decades from the project.
The REDTIF programme provides businesses operating in smaller communities with a post-performance, refundable tax rebate, aiming to encourage economic development within rural areas of the state.
Companies can receive up to half of the incremental state taxes attributable to eligible projects under this scheme.
The company stated that this tax credit is one of several incentives it has discussed with Utah officials.
It is in addition to an earlier tax rebate from the Utah Inland Port Authority that was announced earlier this month.
The company reported that, combined with that rebate, the total value of approved tax incentives amounts to $406.5m.
Anson indicated that any financial impact from the tax credit would be further assessed in the definitive feasibility study for Green River.
Discussions are continuing between the company and the state regarding additional incentives.
Anson executive chairman and CEO Bruce Richardson said: “The tax credit that has been approved by the GOED Board is yet another indication of the strong support that Anson has received from the Government of Utah, a relationship that the company has been developing over several years.
“The company appreciates this support and is continuing to work with both the State and Federal government representatives on other grants and incentive programmes that do not dilute the company’s shareholders while adding value to the project.”
