Utah lawmakers debate whether to extend Nucor’s tax exemptions

Utah state lawmakers debated this week whether to extend a sales and use tax exemption to Nucor Steel of Plymouth. According to local news reports, although the exemption had a sunset built in for 2029, Rep. Ryan Wilcox, R-North Ogden is promoting new legislation to prevent the exemption from expiring—the bill noted the value of lost revenue from the exemption at $206,000.

Rep. Brian King, D-Salt Lake City suggested that extending the exemption can be viewed as "corporate welfare."

“The thing Nucor can't tell me is if we didn't have a sales tax exemption would we have seen the growth?” he said. Nucor Corp. reported stellar quarterly results last month.

However, Rep. Wilcox suggested that if any company deserved a tax break it was Nucor. "We're talking about 1,000 jobs in Utah,” he said. “This is a recycling company, the largest one we have. Frankly if we are going to give an incentive this is it.”

The sales tax exemption applies to inputs at the plant, but company officials maintain there is tax revenue generated down the line.