The Rural Fast Track (RFT) Program is a post-performance grant available to small companies in rural Utah. The program provides an efficient way for existing, small companies to receive incentives for creating high paying jobs in the rural areas of the state and to further promote business and economic development.
The Utah Enterprise Zone Program was established in 1988. An enterprise zone comprises an area identified by local elected and economic development officials and designated by the state. Under the program, certain types of businesses locating to, or expanding in a designated zone may claim state income tax credits provided in the law.
In 1996, the Utah Legislature created the Utah Recycling Market Development Zone Program which focuses on recycling as an economic development tool. As more products are recycled and used to manufacture new products the economy will be stimulated through new company expansion or formation and the creation of additional jobs. The zone legislation was established to incent businesses to use recycled materials in their manufacturing processes and create new products for sale. It also benefits business or individuals that collect, process, distribute recycled materials. Composting is considered to be eligible recycling operation.
Approved in 2005, EDTIF is a state incentive program that allows local governments to create “economic development zones” in order to encourage job creation and capital investment. New or existing businesses creating new jobs or significant capital investment within these zones may apply for a partial rebate (30%) for up to 20 years of taxes paid to the state. The rebate may apply to “new state income” generated by the job growth or capital investment, including the payroll tax of the new employees, corporate income tax, and sales tax. Qualifying companies must create new jobs paying at least the median state wage. All EDTIF incentives are evaluated and approved by the Governor’s Office of Economic Development Board. (Section 63-38f-1304)
Utah Aerospace and Aviation Tax Increment Financing (AATIF)
The Utah Aerospace and Aviation Tax Increment Financing (AATIF) program was created to encourage the growth of the aerospace and aviation manufacturing industry in Utah. Companies creating new aerospace and aviation manufacturing jobs in Utah may apply for a partial rebate (30%) for up to 20 years on state revenues. The rebate may apply to “new state income” generated by the job growth or capital investment, including the payroll tax of the new employees, corporate income tax, and sales tax. Carbon County Airport is certified to participate in AATIF. Qualifying companies must create new jobs paying at least the median state wage. All EDTIF incentives are evaluated and approved by the Governor’s Office of Economic Development Board.
Research Tax Credits
Provides an income tax credit of up to 6% of a taxpayer’s Qualified Research Expenses for the tax year in excess of the Taxpayer’s Base Amount. The definitions are the same as defined in the Internal Revenue Code, Section 41(c-g) (Utah Code Section 59-10-132)
Sales and Use Tax Exemptions
Manufacturers (SIC 200-3999) are exempt from paying sales tax on the purchase of new equipment. The purchase of replacement manufacturing equipment is also exempt from sale tax. Previously paid sales tax can possibly be refunded. This amounts to a 6%+ cost savings.
What is Custom Fit? And how can it help your company?
Custom Fit is a dynamic partnership between the Utah College of Applied Technology, its college campuses, select sister institutions across the state, and the local business community. Its mission is simply to provide customized employee training.
This unique program offers you, your company, and your employees the benefit of state-of-the-art training and development, customized to meet your specific needs, and does so at a cost that you can afford. How? The Utah State Legislature appropriates funds each year as an investment in Utah’s economy through Custom Fit, which means your tax dollars are coming back to serve you! The Custom Fit program funds a large portion of the training costs.
There is a Custom Fit Training office serving every region of the state with a staff ready to meet with you to discuss your business: What’s working? What’s not? Where are your biggest frustrations? And how can Custom Fit help?
Your Custom Fit representative works with you to determine if Custom Fit is right for your business. Then the Custom Fit representative decides who the best service provider(s) will be, figures out the logistics, and establishes a Custom Fit budget. Your Custom Fit representative will calculate the cash contribution required of your company.
Over the years, Custom Fit has worked with many types and sizes of businesses from mom and pop shops to the largest employers in the state. Whether you need specific technical training, safety certifications, computer skills, leadership / management skills, or just help in how to get along with others at work, Custom Fit can provide training with industry experts to meet your needs. Custom Fit’s goal is to assist you in building and maintaining a quality workforce to meet your demands and strengthen your competitive edge.
BRIDGERLAND ATC – LOGAN, UT
255 W 1100 S
Logan, UT 84302
OGDEN-WEBER ATC – OGDEN, UT
200 North Washington Blvd
Ogden, UT 84404
DAVIS ATC – KAYSVILLE, UT
550 E 300 S
Kaysville, UT 84307
TOOELE ATC – TOOELE, UT
88 S Tooele Blvd
Tooele, UT 84074
MOUNTAINLAND ATC – LEHI, UT
2301 W Ashton Blvd
Lehi, UT 84043
UINTAH BASIN ATC – ROOSEVELT, UT
1100 E Lagoon St
Roosevelt, UT 84066
SOUTHWEST ATC – CEDAR CITY, UT
510 West 800 South
Cedar City, UT 84720
DIXIE ATC – ST. GEORGE, UT
1506 S Silicon Way
St. George, UT 84770
SNOW COLLEGE – RICHFIELD/EPHRAIM
800 West 200 South (Bldg 2A)
Richfield, Utah 84701
Short Term Intensive Training (STIT)
STIT programs are customized and designed to meet full-time job openings. Programs are usually less than one year in length and will be designed to meet the specific training needs of a company while matching needs with people seeking employment. STIT gives the option of training at 50%-70% discount of normal training costs.
The State Industrial Assistance Fund (IAF) that can be used for relocation costs. This incentive can be earned as Utah jobs created meet the IAF requirements resulting in higher quality jobs, and as Utah purchases. Two programs are applicable: 1) rural Utah program with funding up to $100,000 for relocation expenses; IAF will pay employee moving costs to disadvantaged areas outside the Wasatch Front, St. George, or Cedar City and 2) Corporate Funding which is dependent on the amount of Utah purchases and wages.
Industrial Development Bond Guidelines
Industrial Development Bonds (IDB’s) are a financing tool used by private sector developers for manufacturing facilities. The applicant must meet federal guidelines; however, the State of Utah has no additional requirements. The federal tax code places a limit of $10.0 million per project on IDB financing. The Internal Revenue Code also specifies that the sum of all other IDBs used by the developer cannot exceed $40 million nation-wide. 95% of bond proceeds must be used for manufacturing facilities. The end purchaser of an Industrial Development Bond does not pay Federal Income Tax; consequently, the savings passed through may result in lower cost of money to the company.
The local Job Service office utilizes a computerized job matching system that quickly screens applicants to ensure that they meet the qualifications set by a company.