Sandpoint tech firm approved for big state tax break for expansion
Kochava, a high-tech company that launched in Sandpoint in 2011, how now been approved for the same type of state Tax Reimbursement Incentive that Amy’s Kitchen received yesterday for a new plant in Pocatello, the state of Idaho and city of Sandpoint announced today. The firm plans to add 35 new employees in the coming months and 50 over the next five years; it will get a rebate of 28 percent of its state corporate income, sales and payroll taxes for the next five years.
Kochava had 26 employees in Sandpoint in June; a year earlier, it had just eight. The new tax break, approved by lawmakers this year, started July 1; it’s for new or expanding companies that will add at least 20 jobs in rural areas or at least 50 in urban areas, if the jobs pay at least the county average wage. The incentive can be for up to 30 percent of a firm’s state corporate income, sales and payroll taxes for up to 15 years; a state commission decides who gets how much.
The first recipient was SkyWest, for a new facility in Boise; the second was frozen food producer Amy’s Kitchen, which announced yesterday that it will move into an abandoned Heinz plant in Pocatello. That firm also was awarded a 75 percent break on its property taxes by the local county commissioners; no property tax break has been announced for Kochava. Amy’s Kitchen was awarded a 26 percent tax rebate on its state taxes for 15 years. Skywest got a 25 percent tax break for 12 years. Some economists say tax breaks like this don't work, as the growth would come anyway; Northwest Nazarene University economist Peter Crabb told the Idaho Statesman today, "We're giving away the farm again."
Sen. Shawn Keough, R-Sandpoint, said of the Kochava announcement, “This is great news! This is exactly what I hoped would be the outcome of my support for the governor’s initiative – growing jobs of existing businesses right here at home.” Click below for the state’s full news release from Gov. Butch Otter’s office.
C.L. “Butch” Otter
GOVERNOR
NEWS RELEASE
FOR IMMEDIATE RELEASE:
October 30, 2014
LEADING SOFTWARE ANALYTICS COMPANY KOCHAVA EXPANDING IN NORTHERN IDAHO
(SANDPOINT) – The City of Sandpoint and the State of Idaho announced today that Kochava, a worldwide leader in mobile attribution analytics and optimization, is expanding its operations in Sandpoint. Kochava plans to hire up to 35 new employees in the coming months and a total of 50 employees over the next five years.
“In addition to attracting new business to the state, the main objective of the new Tax Reimbursement Incentive (TRI) is to support existing Idaho companies in their plans to grow and expand,” Governor C.L. “Butch” Otter said. “Technology and innovation are important in any thriving economy, and I’m thrilled that Kochava has made the decision to not only remain in our state, but to enhance its presence and create new high-wage jobs in a key industry sector.”
Kochava is approved to receive a TRI credit of 28 percent for five years. Over the term of the agreement, the economic impact to the state will include new total wages of $13.5 million and new State tax revenues of $1.3 million.
“This is great news! This is exactly what I hoped would be the outcome of my support for the Governor’s initiative – growing jobs of existing businesses right here at home!” said State Senator Shawn Keough, who represents Boundary and northern Bonner counties. “These good-paying jobs are badly needed here in the far northern rural area of Idaho and this tool is an important one that is paying off already. I am proud to have voted for this and having supported Governor Otter’s leadership.”
“The City of Sandpoint is delighted that a locally grown company will continue to expand in our community, and the prospect of over 50 new jobs is welcomed with open arms,” Sandpoint Mayor Carrie Logan said. “This news further supports the awareness that Sandpoint is a hub of innovation and a destination for medical device, aerospace and other high-tech companies desiring to locate in a town offering an unparalleled combination of recreational amenities and quality of life.”
Kochava recently added four senior-level industry experts to its team specializing in data science, marketing, sales, and finance. Future hiring is anticipated to keep pace with the rapid growth and adoption of the company’s proprietary technology.
The Kochava platform provides mobile advertisers precise analytics on their app promotion campaigns that span from initial launch through conversion, optimization and lifetime value (LTV) reporting. Kochava's tools enable customers to turn data into actionable information. The company’s pioneering analytics and data visualization tools have led to global customer growth of more than 361 percent over the past year. Kochava is integrated with more than 700 publishers and is trusted by brands like Facebook, Google, Yahoo! and Pandora.
About the company’s decision to expand in Sandpoint, Kochava CEO Charles Manning, said, “I don’t believe Kochava’s success as a growing company thriving in a community like Sandpoint is an enigma. The list of advantages that amenity-rich cities like Sandpoint offer range from employee retention to incredibly cost-effective office space. Combine these advantages with the State of Idaho’s low-cost business environment and it all adds up to a solid business decision for our company.”
Historic downtown Sandpoint – on the picturesque shore of Lake Pend Oreille – will benefit from the company’s growth, Sandpoint Planning and Community Development Director Jeremy Grimm said.
“Not only do these new Kochava jobs have the very high indirect multipliers, the location of the expansion in the city’s downtown core will provide a host of symbiotic benefits directly adding to the vibrancy in the heart of our community,” Grimm said. “It’s like a shot of adrenaline to our local economy and we hope that it is just the beginning of Sandpoint, and Idaho, being recognized as a cost-effective and competitive location to launch ‘new economy’ businesses like Kochava.”
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About Kochava
Kochava offers a unique, holistic and unbiased approach to mobile attribution analytics and optimization. Via its platform, Kochava provides mobile advertisers with precise real-time visualization of campaign data that spans from initial launch through conversion and lifetime value (LTV) reporting, including comprehensive post-install event tracking. Kochava's tools enable customers to turn their data into actionable information. Kochava is integrated with more than 700 publishers and is trusted by hundreds of brands including the biggest names in mobile gaming, news and media, and commerce.
For more information, visit www.kochava.com; contact Kochava’s Melissa Burns atmburns@mobilitypr.com or 208-850-5939, or the City of Sandpoint’s Jeremy Grimm atjgrimm@ci.sandpoint.id.us or 208-255-1738.
