Enterprise Zone Tax Credits
The following tax credits may be claimed by eligible businesses locating or expanding in enterprise zones on Utah state income tax forms:
JOB CREATION TAX CREDITS (maximum 30 full time positions per tax year):
- A $750 tax credit for each new full time position filled for at least six months during the tax year.
- An additional $500 tax credit if the new position pays at least 125% of the county average monthly wage for the respective industry (determined by the Utah Dept. of Employment Security). In the event this information is not available for the respective industry, the position must pay at least 125% of the total average monthly wage in the county.
- An additional $750 tax credit if the new position is in a business which adds value to agricultural commodities through manufacturing or processing.
- An additional $200 tax credit, for two consecutive years, for each new position insured under an employer sponsored health insurance program if the employer pays at least 50% of the premium.
OTHER TAX CREDITS:
- A tax credit (not to exceed $100,000) of 50% of the value of a cash contribution to a 501(c)(3) private nonprofit corporation engaged primarily in community and economic development, and is accredited by the Utah Rural Development Council.
- A tax credit of 25% of the first $200,000 spent on rehabilitating a building which has been vacant for at least two years, and which is located within an enterprise zone.
- An annual investment tax credit of 10% of the first $250,000 in investment, and 5% of the next $1,000,000 qualifying investment in plant, equipment, or other depreciable property.
Non refundable tax credits are available to eligible businesses in designated enterprise zones from the start of the tax year in which the designation is made. Unused credits may be carried over for three years. Businesses closing operations in one rural area to locate in another rural area may not claim tax credits under this program. Construction jobs are not eligible for tax credits. Retail businesses and public utilities are not eligible to claim tax credits.
To apply for the Enterprise Zone Tax Credits use our online application:
For more information about tax credits, please contact:
Utah Tax Commission
Technical Research Unit
Taxpayer Services Division
210 North 1950 West
Salt Lake City, Utah 84134
Telephone: (801) 297-2200
Fax: (801) 297-7574