Tech company seeks LEDA funding in move to Santa Fe

Tech company seeks LEDA funding in move to Santa Fe

  • Post published:August 12, 2020
  • Post category:News

SavantX Inc., a Wyoming based software developer specializing in quantum computing, wants to move its corporate research center to Santa Fe and wants some assistance from the State. The move to Santa Fe would create 128 new jobs with an average annual salary of $97,000 according to SavantX officials in their application for state economic development funding.  SavantX Inc. has applied for $500,000 in funding through the state’s Local Economic Development Act (LEDA). The city of Santa Fe would serve as the fiscal agent and pitch in $50,000 in funding, while New Mexico would contribute $450,000 over 10 years. According to Santa Fe officials, the move to NM would generate more than $28 million in net benefits. More than $5 million in new revenue would be generated through gross receipts and property taxes and other fees.

This all sounds like a great plan to bring next generation tech production and research to NM, but as we’ve seen in the past this funding has a habit of leaving the state. New Mexico Business Coalition has for many years now, trumpeted the clear need for New Mexican government officials to include rock solid “clawback” agreements when using tax payer funds as incentives for luring companies to the state. Any LEDA assistance tied to specific economic development measures must be  subject to strict clawback provisions if SavantX does not meet its benchmarks. 

When these companies get millions of tax dollars in fee payment abatement or other state bonuses and then decide to leave the state before they fulfill their obligation in return for those dollars, they need to be held accountable to the taxpayers. Read more HERE.