Biggins Lacy Shapiro & Company, LLC

Utah Economic Development Incentive Programs

Tax Credits

Economic Development Tax Increment Finance Tax Credit (EDTIF):  Businesses that locate in Economic Development Zones may be eligible to receive refundable, post-performance tax credits.  The value of the EDTIF credit is up to 30% of new state revenues generated by a business attraction or expansion project over a typical period of 5 to 10 years.  No more than 50% credit can be claimed in any single year.  To qualify, a business must create at least 50 jobs with wages that meet or exceed 110% of the county average wages within both rural and urban communities.  This discretionary program is available to businesses that operate within one of the state’s targeted industry sectors.  The jurisdiction within which a project is to locate must provide local incentives and establish an Economic Development Zone.

Research Activities Credits:  Businesses engaged in qualified R&D may be eligible for one (or more) of the following non-refundable income tax credits:

  • 5% of qualified R&D research expenses in Utah for the current tax year that exceed a base amount
  • 5% of payments made to a qualified organization for basic research in Utah for the current taxable year that exceed a base amount (unused credits may be carried forward for up to 14 years)
  • 7.5% of qualified research expenses for the taxable year (unused credits cannot be carried forward)

High Cost Infrastructure Tax Credit (HCITC): The HCITC supports investments in qualifying cost-intensive, natural resources-based infrastructure projects and is available to businesses who:

  • expand or create new industrial, mining, manufacturing, or agricultural activity;
  • are comprised of at least 10 percent (or $10,000,000) of infrastructure costs; and
  • generate new state revenues that are directly attributable to new infrastructure investment

Qualifying (certified) infrastructure investment will generally receive a non-refundable tax credit of 30 percent of qualifying infrastructure-related state revenue generated during a qualifying tax period. The total tax credit authorized for a project will be 50 percent of the cost of the infrastructure investment. The tax credit will generally only apply to new state revenues that are directly attributable to new infrastructure investment.

GRANTS

Industrial Assistance Fund (IAF):  Discretionary, post-performance grants are available to companies that create at least 50 high paying jobs in urban counties.  To qualify, the wages of the newly created jobs must be at least 110% of the county average wages within both rural and urban communities and the company must operate within one of the state’s targeted industry sectors.  Corporate headquarters projects are also eligible. The jurisdiction within which a project is to locate must provide local incentives.

SPECIAL ZONING

Enterprise Zone Tax Credits:   Businesses that locate in Enterprise Zones and create new jobs are eligible for corporate income tax credits valued at $750 per job with an additional $500 if the newly created job has wages at or above 125% of the average county wage.  Other incentives include a 25% credit on the first $200,000 invested in renovating a vacant building and an annual 10% credit on the first $250,000 invested in a manufacturing facility.  An additional credit of 5% is available for investment exceeding $1 million in manufacturing plant and equipment.  All credits are non-refundable and non-transferable.  Unused credits may be carried forward for up to 3 years.

JOB TRAINING

Custom Fit Training:  Discretionary grants may cover up to 50% of job training costs, and are administered through Utah’s community college system.

TAX EXEMPTIONS

Sales & Use Tax Exemptions are available for new and replacement manufacturing equipment.

Last updated: June 2018



 
Biggins Lacy Shapiro & Company, LLC
609-924-9775
info@blsstrategies.com