Lunar Resources will construct a new factory in Salt Lake County to produce pulsed power technology, a development supported by state tax incentives. This local expansion arrives as the federal government moves to reform nuclear reactor testing to expedite the deployment of advanced energy technologies.
State tax incentives awarded
The Utah Governor’s Office of Economic Development (GOED) announced June 11 that it awarded Lunar Resources a post-performance tax reduction for its HELIX-1 Factory. The agreement, part of the state's Economic Development Tax Increment Financing (EDTIF) program, supports the construction of what is expected to be the largest pulsed power manufacturing facility in the United States.
Economic impact and investment details
Lunar Resources plans to invest nearly $85 million in Utah over the next 10 years. The project is projected to create 420 jobs with total wages reaching approximately $188.2 million, generating an estimated $47.3 million in new state tax revenue. Under the EDTIF program for urban counties, the company will receive a 30% tax credit on new state tax revenue.
Overview of pulsed power technology
Lunar Resources specializes in pulsed power technologies, which utilize extremely high power pulses of energy in short bursts for use in defense, energy, and industrial systems. The company applies these technologies to applications on Earth, in space, and on the Moon.
Leadership statements on expansion
"Their pioneering technology aligns with our future-focused mindset and will serve as a powerful economic catalyst," said Jefferson Moss, commissioner of GOED. Elliot Carol, CEO of Lunar Resources, stated that finding a location that fosters innovation was paramount for scaling manufacturing to meet demand for their Helix Driver technology.
Utah's tax incentive programs
The state's incentive program, established by the Utah Legislature in 2005, provides tax credits or grants to companies that meet specific performance benchmarks, such as job creation and capital expenditure. While the EDTIF program targets industries like advanced manufacturing and aerospace in urban counties, the REDTIF modification allows for more significant incentives for projects in rural communities.
According to the Governor's Office of Economic Development, incentive eligibility often depends on whether new jobs pay at least 110% of the average county wage in urban areas or 100% in rural areas. Since its inception, approximately two-thirds of participating companies in the state's tax credit program have been Utah-based.
On a federal level, an executive order issued on May 23, 2025, seeks to reform the Department of Energy's process for testing nuclear reactors. The order aims to address what the administration described as overregulated complacency that has slowed the commercial deployment of new nuclear technologies.
The order directs the Secretary of Energy to revise regulations and procedures to ensure that qualified test reactors can be safely operational at Department-controlled facilities within two years of a substantially complete application. This initiative targets advanced reactors, including small modular reactors and microreactors, to support industries such as data centers, microchip manufacturing, and hydrogen production.
The federal mandate includes a requirement for the Secretary of Energy to issue guidance within 60 days regarding the definition of a qualified test reactor. Additionally, the administration intends to establish a pilot program for reactor construction and operation outside of National Laboratories.
