The Rural Development team supports GOED’s overall mission “to enhance quality of life by increasing Utah’s revenue base and improving employment opportunities” by connecting directly with rural businesses. The office offers a variety of resources, including state tax credits through the Enterprise Zone, Targeted Business Tax Credit, Non-Profit Tax Credit and the Recycling Market Development Zone. The Rural Fast Track grant offers a unique opportunity to rural companies who are investing in their businesses and hiring new employees. The new REDI Program gives grants to businesses creating new positions in small rural counties, providing opportunities for online remote workers. Additionally, in 2018, the Utah  Rural Jobs Program will grow rural companies by working with select “Rural Investment Companies” to infuse capital into the business.

The Office of Rural Development also supports rural economic development through the Business Expansion & Retention (BEAR) Grant Program.  This program is designed to assess the needs of local businesses and to address unique economic opportunities. It is offered to local economic development professionals in county and city economic development departments, Chambers of Commerce, Small Business Development Organizations, Native American Tribes and other regional economic development organizations.

Rural Business Programs & Incentives

For more information about the Office of Rural Development’s programs download the ORD All Programs PDF.

 

 

The Office of Rural Development (ORD) offers 10 programs that enhance economic development in rural Utah. From tax credits to grants, there is a wide variety of programs to help businesses prosper. See map below for program availability in your location.

 

Learn about how Beaver Creamery and Peczuh Printing benefitted from participating in the Rural Fast Track Program.

 

 

Please review the following programs to see which would most benefit your company and project.  Contact goedruralprograms@utah.gov with questions.

 

BUSINESS EXPANSION AND RETENTION (BEAR)

Do businesses in your community have access to the resources they need?

Learn more about FY20 BEAR Application and Process by watching this video.

  • Funding to assist rural community leaders and service providers with targeted business outreach to facilitate economic growth

The Business Expansion and Retention (BEAR) program is designed to assist in growing new and existing rural businesses, influence rural job creation, and increase economic diversity in rural regions by enhancing the level of technical services provided. The BEAR initiative is available to rural county economic development offices, Tribes, Associations of Governments, Business Resource Centers (BRCs), Small Business Development Centers (SBDCs), and formal partnership consortiums directly involving these entities within the state for business training and skill development. BEAR actively reaches out to rural businesses and makes the connection between the company and needed existing resources from all agencies, higher education, and other resources.

For more information and to apply:

FY2020 Application

FY2020 Application Information & Instruction

FY2019 Quarterly Reports and Reimbursement Claims Form

ENTERPRISE ZONE NON-PROFIT

GOED has opened the Enterprise Zone Non-Profit Tax Credit application — see details below:
Eligible non-profit organizations must apply to the Governor’s Office of Economic Development (GOED) on or before July 1, 2019.
The Governor’s Office of Economic Development (GOED) will review each application received by July 1, 2019, and will submit eligible applications to the Governor’s Rural Partnership Board on or before August 1, 2019.
The Governor’s Rural Partnership Board will review eligible applications and, on or before September 1, 2019, they will provide a list of approved projects to the GOED office along with the assigned amount of non-profit contribution tax credits available to donors that make contributions toward each approved project.

For more information and to apply please follow this link: https://www.tfaforms.com/4614329

The purpose of the Enterprise Zone/Non-Profit (EZNP) program is to encourage nonprofit organizations (501C-3 only) to develop projects that have a positive community and economic impact in rural Enterprise Zone Areas.

What is the GOED Rural Development Enterprise Zone Non-Profit Program? Purpose: The purpose of the Enterprise Zone/Non-Profit (EZNP) program is to encourage nonprofit organizations (501C-3 only) to develop projects that have a positive community and economic impact in rural Enterprise Zone Areas. What is the Benefit? If selected and the project approved, the non-profit may provide a Utah state tax credit to their donors who make contributions to the nonprofit corporation for the approved project. The selected non-profits will be provided with a tax credit allocation – the maximum dollar amount that is available to their donors for tax credits. The Details:

  • Only non-profits with federal 501C-3 status that are located within designated Enterprise Zones are eligible and one of the organization’s primary purposes must include community & economic development.
  • GOED will announce the timing and process of the EZNP program and then reviews the applications, if all eligibility requirements are met, then the application will be forwarded to the Governor’s Rural Partnership Board (GRPB) for consideration
  • Each year the GRPB Board may allocate up to $75,000 in any calendar year of tax credits for eligible Non-Profit Projects, with no more than 50% of that amount going to one project.
  • If a project is approved by GRPB and given an allocation of tax credits, then GOED will provide the non-profit corporation with an agreement describing the approved amount of non-profit contribution tax credits available to donors who make contributions to the nonprofit corporation for an approved Project, along with the nonprofit corporation’s requirements for reporting to the office. These reporting requirements include annual status updates and the final report when the project is completed. Upon complete execution of the agreement, then the non-profit may begin solicitation of donations for which a tax credit could be claimed.
  • The total amount of tax credits made available to the non-profit must be used in the 2 calendar years for which it was awarded. The non-profit will provide a list of donors to the approved project to GOED and the amounts of their donation.
  • The non-profit must comply with GOED reporting requirements to include annual status updates and the final report when the project is completed.
  • Acceptable projects could include: o a community event or project that will foster community and economic development and/or; o the building or renovating of, or the acquisition of property for
    • a museum
    • a tourist or visitor center
    • a theater
    • a building where the use of the building will foster community and economic development
  • Non eligible projects: o the building or renovating of a state-owned building; o providing or funding scholarships; or o the building or renovating of a housing project.
  • Non-profit donors must complete an application for the tax credit and will need to be certified by GOED. If approved, the donor will be provided with a tax credit certificate that will need to be filed with the donor’s tax return. The tax credit certificate will not exceed 50% of the value of the donation to the non-profit approved project.

ENTERPRISE ZONE TAX CREDITS

Are you seeking to expand or relocate your business in rural Utah?

  • Incremental tax credits for new jobs paying above county average wage
  • Capital investment tax credits

The following tax credits may be claimed by eligible businesses locating or expanding in enterprise zones on Utah state income tax forms: Please contact Jim Grover (jimgrover@utah.gov) for more information about applying for Enterprise Zone Tax Credits. Job Creation Tax Credits: (maximum 30 full time positions per tax year):

  1. A $750 tax credit for each new full time position filled for at least six months during the tax year.
  2. 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.
  3. An additional $750 tax credit if the new position is in a business which adds value to agricultural commodities through manufacturing or processing.
  4. 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:

  1. 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.
  2. 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.
  3. 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:

Frequently Asked Questions (FAQ): Answers to Frequently Asked Questions are in general and may change depending upon the circumstances of the situation. Neither the Utah State Tax Commission nor the Governor’s Office of Economic Development prepare returns for taxpayers and cannot advise taxpayers to the extent we are not their accountants or legal representatives.

1 Regarding prior year Enterprise Zone tax credit carryforwards, do entities need to reapply for these or track them on their own? Per the Utah State Tax Commission, the statute in 2015 §63M-1-413 (3) is the same as 2016 §63N-2-213(9) which states that if the nonrefundable credit exceeds the tax liability then it can be carried forward for the next three taxable years. It does not state that carryforwards from 2015 or prior years need to be certified in the new statute. The Tax Commission will be reviewing and auditing credits claimed in 2015 and prior years so if there are any carryforwards from credits earned in 2015 or prior the Auditing Division will make adjustments to the carryforwards if applicable subject to the statute of limitations, etc. The Utah Tax Commission form TC-40a has a box to enter prior year carryforward amounts with the respective code already identified.
2 How can I identify if an area has been designated as an Enterprise Zone? The web-site locate.utah.gov has an area to enter a physical address on the left side. Use the dropdown to identify the year of map to display to correspond with the application year.
3 What is the deadline for filing an application for the Enterprise Zone tax credit? Applications must be received 4 weeks prior to the anticipated filing date. Submitted applications will be processed on a first come/first serve basis and no application will be processed until all requested supporting documentation has been provided. All submitted data must be supported by documentation.
4 The online application notes that applications are due 4 weeks prior to the anticipated tax filing date. Does this mean the filing deadline, or just 4 weeks before filing? Both are correct. We anticipate it taking 4 weeks to process an application for this tax credit. If you have the data available earlier, you do not have to wait until the 4 week tax filing deadline to submit the application. Submitted applications will be processed on a first come/first serve basis and no application will be processed until all requested supporting documentation has been provided. All submitted data must be supported by documentation.
5 Can I file my tax return using the amount in the application before I have a certificate? No. We review each application for qualification and in certain situations the amount of the credit could change. Entity information, tax year and credit amounts are shared with the Utah State Tax Commission. Keep a copy of your certificate to share with them if requested.
6 If I am amending a tax return next year, can I claim the Enterprise Zone tax credit as long as I submit it 4 weeks before I anticipate filing the tax return? No. Once you have the certificate you can claim the Enterprise Zone tax credit. Entity information, tax year and the amount of tax credits are reported to the Tax Commission.
7 For 2018 the IRS changed how depreciation is calculated when there is a trade-in. How does this change the amounts eligible for the Enterprise Zone program? To calculate what qualifying investments in plant, equipment, or other depreciable property count toward the credit we have referred to the Internal Revenue Service’s Form 4562.

 

To determine how much credit applies we use the amount of the asset that could include the cost of acquisition such as freight, installation and taxes. Starting in tax year 2017, motor vehicles had a reduction of the trade-in allowance. The changes to Federal IRS deprecation calculations do not diminish the amount eligible for State of Utah Enterprise Zone tax credits as authorized in code.

8 Construction jobs are not allowed for the job creation tax credits, but can construction companies continue to claim investment credits? Yes. As provided in Statute 63N-2, there is no exclusion for construction companies claiming the investment tax credits.
9 Is it correct that retail companies may not claim either the job creation or investment tax credits? Correct. As provided in Statute 63N-2, business entities primarily engaged in retail trade do not qualify for either the job creation or investment tax credits.
10 Can the Enterprise Zone tax credits flow down to shareholders/partners? Yes. Pass-through entities cannot file nonrefundable tax credits, which the job creation and investment tax credits available under the Enterprise Zone tax credit are identified as nonrefundable tax credits. However the credit could be passed through to the pass-through entity taxpayer (shareholders).
11 Past information about these credits said the credits could be carried back three years. Is that still available (in addition to carrying the credits forward three years)? No. As provided in Statute 63N-2, if the amount of a tax credit under this section exceeds a business entity’s tax liability under this chapter for a taxable year, the business entity may carry forward the amount of the tax credit exceeding the liability for a period that does not exceed the next three taxable years.
12 Where can we find out information on 125% of the county wage? The Office of Rural Development has provided an updated schedule which is now available as a link in the online application.
13 If I need to amend a 2014 return to claim the credit, do I use the online application process or do I just do as was previously done (i.e., determine the credits and claim them and keep the information if requested)? To amend a 2014 tax return to claim this credit do not complete the online application. Instead please contact the Utah State Tax Commission as the Governor’s Office of Economic Development is responsible for certifying business entity’s eligibility beginning with the 2016 tax year.
14 What supporting documentation is needed to support a qualifying investment in plant, equipment, or other depreciable property? As provided in Statute 63N-2 and Rule 357-15-2, Purchase documentation such as bill of sale, contract of sale, receipt, invoice, or property tax notice which identifies the business entity and date issued is required for all items. If an invoice is more than $10,000 payment documentation such as, bank statement, cleared check, loan, or financing agreement which identifies the business entity, date and amount paid is required. Property and real estate transactions also require the contract of sale, settlement statement, property tax notice, and financing agreement.

Qualified business use vehicle purchases also should include Utah Bill of Sale TC-843, business percentage use and financing agreement or payment documentation.

15 What supporting documentation is needed to support a private capital investment for the rehabilitation of a building in an Enterprise Zone? As provided in Statute 63N-2, the rehabilitated building’s physical address; documents showing the current owner such as the deed or mortgage documents; the date the building was last occupied; a notarized vacancy letter; a current occupancy permit or certificate; receipts and paid invoices of all rehabilitation expenses totaling the amount the tax credit is calculated from; check detail and bank statement detail to validate the entire amount paid; and the Office may request further documentation to verify receipts and paid invoices.
16 My company purchased a delivery route – can this be claimed for the EZ tax credit? As provided per Statute 63N-2 and per Utah Administrative Rules R357-15-2 a “qualifying investment in plant, equipment, or other depreciable property” means an investment in most types of tangible property (except land), such as buildings, machinery, vehicles, furniture, and equipment that qualifies for depreciation under the Internal Revenue Service’s Form 4562.The purchase of the delivery route or other intangibles such as software as a service cannot be claimed for the Enterprise Zone tax credit.
17 Did the tax credits get discontinued for 2016? The Enterprise Zone tax credits did not get discontinued for 2016, but it does involve a new process. Per the Enterprise Zone statute 63N-2 and Enterprise Zone rules R357-15, the Governor’s Office of Economic Development will be certifying a business entity’s eligibility for this tax credit beginning in tax year 2016. Please go to this web-site to find the application: http://business.utah.gov/programs/incentives/enterprise-zones/
18 Please clarify the process for applying for this credit retroactively. Are we still able to get credits for 2015? Please contact the Utah State Tax Commission as the Governor’s Office of Economic Development is responsible for certifying business entity’s eligibility beginning with the 2016 tax year.
19 Is this tax credit available to tax payers from the start date of the first tax year in which the business was located in a designated Enterprise Zone? This tax credit is available to tax payers as provided by statute 63N-2 and available to entity’s located within the respective Enterprise Zone and meeting certain criteria beginning the first year an Enterprise Zone designation is made.
20 If an investment in qualified property was made in a prior year is the tax payer eligible to claim this credit as long as they were already located within the zone? As provided in Statute 63N-2, once an entity has met qualifying criteria, the tax payer is eligible to claim a qualifying investment in plant, equipment, or other depreciable property that qualifies for depreciation under the Internal Revenue Service’s Form 4562 the year in which the investment occurred as long as during that same year the location of the qualified property was within an approved Enterprise Zone and the necessary supporting documentation is provided. If the investment occurred prior to 2016, please contact the Utah State Tax Commission as the Governor’s Office of Economic Development is responsible for certifying business entity’s eligibility beginning with the 2016 tax year.
21 Does the minimum investment of $1.25M within one year still have to be met? The $1,250,000 corresponds to the 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 as per Statute 63N-2. The $1,250,000 is a maximum figure, not a minimum investment.
22 Is the Utah statute of limitations 3 years from the original filing due date plus the extension period, or 2 years from the date the tax was paid, whichever is later? Per the Utah State Tax Commission, the Auditing Division answers questions regarding how statutes are interpreted and applied and sometimes how returns are prepared. It should be noted that the Legislature determines statute and the Auditing Division is tasked with fair and equitable administration of the statutes with no opinions regarding them. The Auditing Division does not prepare returns for taxpayers nor can we advise them to the extent we are not their accountants or legal representatives. The statute of limitations for filing a return is generally 3 years after the return is filed per UCA §59-1-1410(1)(a).

Claims for refunds must be within 3 years from the due date of the original return including extension or 2 years from the date the tax was paid per UCA §59-1-1410(8)(a).

59-1-1410 Action for collection of tax, fee, or charge — Action for refund or credit of tax, fee, or charge — Denial of refund claim under appeal — Appeal of denied refund claim.
(1)(a) Except as provided in Subsections (3) through (7) and Sections 59-5-114, 59-7-519, 59-10-536, and 59-11-113, the commission shall assess a tax, fee, or charge within three years after the day on which a person files a return.

(8)(a) Except as provided in Subsection (8)(b) or Section 19-12-203, 59-7-522, 59-10-529, or 59-12-110, the commission may not make a credit or refund unless a person files a claim with the commission within the later of:
(i) three years from the due date of the return, including the period of any extension of time provided in statute for filing the return; or
(ii) two years from the date the tax was paid.

The Tax Commission’s website at http://tax.utah.gov/ contains helpful information for taxpayers including forms and publications and the general contact phone number of 801-297-2200 for further questions.

23 Why is there a “trade-in” reduction for motor vehicles? Motor vehicles are a common asset claimed for the Enterprise Zone tax credit. GOED became concerned with the volume and amount of rebate provided to claimants for the full invoice amount when a purchase was associated with a trade-in. Starting in January 2017 GOED requested claimants to reduce the calculated amount by the trade-in value, thus providing a rebate on the amount invested in the new asset. Reductions are only for motor vehicles and not for other items. This decision is formally adopted in Administrative Rule R-357-15. This reduction does not apply to mechanized farm equipment or non-motorized items such as trailers.
24 Is there a paper application, or is it all required to be submitted online? If it is all required to be online, is there at least a way we can print blank screens of all of the information required? The application is required to be submitted online at this time. A pdf file can be provided upon request.
25 What documentation is needed to support application submissions? As provided in Statute 63N-2, documentation need to support application submissions includes, but is not limited to, claiming entity data (e.g. name, address, physical address, tax identification number), responses to qualification questions, and a certification letter signed by an officer of the applying entity. If the employment-related tax credit is being claimed, documentation includes, but is not limited to:
§ a current total of all full time employees including the total of employees as reported to the Department of Workforce Services for the last three years,
§ the number of new incremental employee positions created above the baseline,
§ for each new incremental employee position above the baseline provide:
– employee name,
– employee hourly wage and/or annual salary,
– employee average hours worked per week,
– employee hire date,
– if applicable, proof of employer-sponsored health insurance program if the employer pays at least 50% of the premium cost,
– if applicable, evidence that the business entity adds value to agricultural commodities through manufacturing or processing, list of sample products or processes, and
– other documentation as requested by the office.If the investment-related tax credit for rehabilitating a building is being claimed, documentation includes, but is not limited to:
§ the rehabilitated building’s physical address,
§ documents showing the current owner such as the deed or mortgage documents,
§ the date the building was last occupied,
§ a notarized vacancy letter,
§ a current occupancy permit or certificate,
§ receipts and paid invoices of all rehabilitation expenses totaling the amount the tax credit is calculated from,
§ loan documentation, check copies, and bank statements showing the entire amount paid by the applicant
§ the office may request further documentation. If the investment-related tax credit for qualifying investment in plant, equipment, or other depreciable property is being claimed, documentation includes, but is not limited to:
§ receipts and paid invoices of all rehabilitation expenses totaling the amount the tax credit is calculated from,
§ loan documentation, check copies, and bank statements showing the entire amount paid by the applicant
§ the office may request further documentation.Please refer to the Enterprise Zone statute 63N-2 and Enterprise Zone rules R357-15.
26 Can a third party submit the application for a client? If so, how? The third party can complete the online application for the claiming entity. As part of the application there is a certification letter that a business officer of the applying entity must sign. As provided in by statute 63N-2, the application must include a certification letter signed by an officer of the business entity applying for the tax credit.
27 If there is no paper application how does the client sign? As part of the application there is a certification letter that a business officer of the applying entity must sign. This can be printed, signed and then scanned or digitally photographed and uploaded.
28 What is the current definition of “primarily engaged in retail trade?” Retail store locations are not eligible for this tax credit. We review how the entity is registered in the state and other supporting documentation in making this determination.
29 Where can we go to find current rules for the Enterprise Zone Tax credit? Please refer to the Enterprise Zone Utah Statute 63N-2 and Utah Administrative Code R357-15.
30 We have a client who has a 1065 business located within an Enterprise Zone. 1065 entities are flow through and do not pay tax at that level. Does our client need to fill out the new form for the 1065 business and then again for their TC 40? The Auditing Division answers questions regarding how statutes are interpreted and applied and sometimes how returns are prepared. It should be noted that the Legislature determines statute and the Auditing Division is tasked with fair and equitable administration of the statutes with no opinions regarding them. The Auditing Division does not prepare returns for taxpayers nor can we advise them to the extent we are not their accountants or legal representatives. If the partnership is the entity receiving the credit it needs to file if the shareholders are interested in claiming the credit that would flow through to them. The TC-65 partnership form and instructions are located on the Tax Commission’s website at http://tax.utah.gov/.
31 My company is located within an approved Enterprise Zone and has a 6/30/2016 year end. Can I claim the credit for new equipment purchased between 01/01/2016 and 6/30/16 and new employees hired during the same time frame? Or do they not qualify until their tax year beginning 7/1/2016? Your website says “Nonrefundable tax credits are available to eligible businesses in designated enterprise zones from the start of the tax year in which the designation is made.” As provided in Statute 63N-2, once a claiming entity qualifies for eligibility, credits can be claimed, once stated criteria has been met during tax year 2016. Stated criteria that may affect if a tax credit can be claimed includes, but is not limited to, the point in time when the claiming entity achieves a new full-time employee position created within the enterprise zone. A New full-time employee position means a position that has been newly created in addition to the highest baseline count of employment positions that existed within the business entity during the previous three taxable years and is filled by an employee working at least 30 hours per week, for a period of at least six consecutive months, and where the period ends in the tax year for which the credit is claimed. Please refer to the Enterprise Zone Utah Statute 63N-2 and Utah Administrative Code R357-15 for additional criteria.
32 I am a CPA who helps individuals file for this tax credit. How do I supply the required data to GOED if I do not receive this data until after the 4 weeks period before we plan to file the return? The Governor’s Office of Economic Development needs 4 weeks to process the application, so all data will need to be submitted at least 4 weeks before the tax credit certificate is needed back. Submitted applications will be processed on a first come/first serve basis and no application will be processed until all requested supporting documentation has been provided. All submitted data must be supported by documentation.
33 What deadline is applicable to taxpayers who have not filed for a few years? That tax payer would not be barred from the credit just because he didn’t send it to GOED prior to the final extension deadline period. That tax payer would be entitled to the tax credit, regardless of when the tax return is filed. The Governor’s Office of Economic Development needs 4 weeks to process the application, so all data will need to be submitted at least 4 weeks before the tax credit certificate is needed back. Submitted applications will be processed on a first come/first serve basis and no application will be processed until all requested supporting documentation has been provided. All submitted data must be supported by documentation.With regard to tax payers who have not filed for a few years, it depends on the tax year the credit is being claimed, for credits in 2015 and previous years please contact the Utah State Tax Commission as the Governor’s Office of Economic Development is responsible for certifying business entity’s eligibility beginning with the 2016 tax year.
34 Our business is in an Enterprise Zone designated since 2015. We opened in the summer of 2015 so a number of our positions were either not created yet or the employee didn’t work for 6 months because we weren’t open long enough for the 2015 tax year. Can I just file for all our employees in the 2016 tax year or should I include the date they started in 2015 and fill out everything through the 2016 tax season? As provided by statute 63N-2, a tax credit may be claimed by a business entity for each new full-time employee position created within the enterprise zone. A New full-time employee position means a position that has been newly created in addition to the highest baseline count of employment positions that existed within the business entity during the previous three taxable years and is filled by an employee working at least 30 hours per week, for a period of at least six consecutive months, and where the period ends in the tax year for which the credit is claimed. Part of the documentation required includes a current total of all full time employees including the total of employees as reported to the Department of Workforce Services for the last three years.In addition, the employment-related tax credits are available only to a business entity for which at least 51% of the employees employed at the facilities of the business entity located in the Enterprise Zone are individuals who, at the time of employment, reside in (a) the county in which the Enterprise Zone is located, or (b) an Enterprise Zone that is immediately adjacent and contiguous to the county in which the Enterprise Zone is located.
35 We are a restaurant in a tourist driven economy many of our front-of-the-house employees work full time for most of the year (over six months) but then work significantly less during the slow season. They still make a good salary for the area (30k-ish). Can I include those positions if they create full time work for most of the year? We don’t completely close down during the slow months because we want them to make something. As provided by statute 63N-2, a tax credit may be claimed by a business entity for each new full-time employee position created within the enterprise zone. A new full-time employee position means a position that has been newly created in addition to the highest baseline count of employment positions that existed within the business entity during the previous three taxable years and is filled by an employee working at least 30 hours per week, for a period of at least six consecutive months, and where the period ends in the tax year for which the credit is claimed. Part of the documentation required includes a current total of all full time employees including the total of employees as reported to the Department of Workforce Services for the last three years. In addition, the employment-related tax credits are available only to a business entity for which at least 51% of the employees employed at the facilities of the business entity located in the Enterprise Zone are individuals who, at the time of employment, reside in (a) the county in which the Enterprise Zone is located, or (b) an Enterprise Zone that is immediately adjacent and contiguous to the county in which the Enterprise Zone is located.

 

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 taxmaster@utah.gov

RECYCLING MARKET DEVELOPMENT ZONE TAX CREDITS

Does your business reduce or reuse post-consumer waste material?

  • 5 percent income tax credit on the cost of machinery and equipment
  • 20 percent income tax credit on eligible operating expenses

What is a Recycling Zone? 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. Eligibility: Eligible recycling businesses that are located in designated Recycling Market Development Zones qualify for: •    5% Utah state income tax credit on the cost of machinery and equipment •    20% Utah state income tax credit (up to $2,000) on eligible operating expenses •    Technical assistance from state recycling economic development professionals •    Various local incentives Related Links:

Rural Co-working and Innovation Center Grant Program (RCIC)

RCIC webinar link

RCIC information & instructions link

RCIC one-pager link

RCIC application link

Application process is open from July 1 – September 1, 2019

The Rural Co-working and Innovation grant provides funding for facilities that serve individuals working in rural communities with infrastructure and equipment to participate in the online workforce.

The state allocated $500,000 per fiscal year (July 1 through June 31) for this program. The Rural Online Working Hubs Grant Advisory Committee, will review applications, advise and make recommendations to the Office of Rural Development on grant awards.

Qualifying Activities of this Grant are:

  • Construction or renovation of a facility to create a Co-working and Innovation Center
  • Extending and/or improving utilities and broadband service connections to a Co-working and Innovation Center
  • Purchasing equipment, furniture, and security systems as part of a Co-working and Innovation Center

Qualifying Entities and Counties

Qualifying entities for this grant include a county, city, institution of higher education or a private company that is within a defined county designated as a “Rural Area.”

Qualifying “Rural Area” Counties are:

Beaver, Box Elder, Carbon, Daggett, Duchesne, Emery, Garfield, Grand, Iron, Juab, Kane, Millard, Morgan, Piute, Rich, San Juan, Sanpete, Sevier, Uintah, Wasatch, Wayne

Non-qualifying Counties are:

Cache, Davis, Salt Lake, Summit, Tooele, Utah, Washington, Weber

Application Priority 

Priority will be given to applicants:

  • Who serve underprivileged or under-served communities, including communities with high unemployment and/or low median incomes (compared to State of Utah averages)
  • That demonstrate comprehensive planning of a project but has limited access to financial resources, including financial resources from local or county government
  • That maximize economic development opportunities in collaboration with the economic development needs or plans of an educational institution, a county, and a municipality

Questions? Please email goedruralprograms@utah.gov

Rural Economic Development Incentive (REDI)

Download the REDI flyer here.

What is the Rural Economic Development Incentive (REDI) Grant?

The Rural Economic Development Incentive (REDI) program is designed for businesses creating new high-paying jobs in rural Utah counties or all Utah counties except Salt Lake, Utah, Davis, Weber, Washington, Cache, Tooele, and Summit counties. These jobs can be remote, online, or in a satellite hub/office space, or physically located in the same county as the business. For each new position, the business will receive $4,000 to $6,000 based on the employee’s location.

Eligibility:

Any business other than those primarily engaged in construction, retail, staffing or public utility industries are encouraged to apply. A business considering the REDI grant must apply for and receive approval through the Utah Governor’s Office of Economic Development (GOED) in advance of creating any new position(s) which meets the following requirements:

  • Pays at least 110% of the county’s average wage
  • Is filled by an employee who works at least 30 hours per week or that meets the customary practices by that industry as full-time standards
  • Will exist for at least 12 consecutive months

Incentives:

A business entity may qualify for up to $250,000 in rural employment expansion grants each fiscal year.

A business entity that has received a REDI grant may concurrently apply for or receive another GOED grant or incentive.

Potential Allocation Award Amounts:

$4,000 for each new full-time employee position in a county where the average county wage is equal to or greater than the state average wage

$5,000 for each new full-time employee position in a county where the average  county wage is between 85% and 99% of the state average wage

$6,000 for each new full-time employee position in a county where the average county wage is less than 85% of the state average wage 

REDI GRANT LEVELS
 

COUNTIES

COUNTY
AVG WAGE
110% COUNTY
AVG WAGE
STATE OF
UTAH AVG WAGE
% STATE
AVG
WAGE
POTENTIAL
JOB INCENTIVE
Beaver $ 34,613 $ 38,074 $ 45,727 76% $ 6,000
Box Elder $37,367 $41,104 $45,727 82% $6,000
Carbon $ 38,530 $ 42,383 $ 45,727 84% $ 6,000
Daggett $ 34,125 $ 37,538 $ 45,727 75% $ 6,000
Duchesne $ 44,856 $ 49,342 $ 45,727 98% $ 5,000
Emery $ 43,127 $ 47,440 $ 45,727 94% $ 5,000
Garfield $ 30,379 $ 33,417 $ 45,727 66% $ 6,000
Grand $ 32,322 $ 35,554 $ 45,727 71% $ 6,000
Iron $31,724 $34,896 $45,727 69% $6,000
Juab $ 34,102 $ 37,512 $ 45,727 75% $ 6,000
Kane $ 32,613 $ 35,874 $ 45,727 71% $ 6,000
Millard $ 40,133 $ 44,146 $ 45,727 88% $ 5,000
Morgan $ 39,047 $ 42,952 $ 45,727 85% $ 5,000
Piute $ 27,688 $ 30,457 $ 45,727 61% $ 6,000
Rich $ 26,153 $ 28,768 $ 45,727 57% $ 6,000
San Juan $ 35,078 $ 38,586 $ 45,727 77% $ 6,000
Sanpete $ 29,192 $ 32,111 $ 45,727 64% $ 6,000
Sevier $ 35,182 $ 38,700 $ 45,727 77% $ 6,000
Uintah $44,248 $48,673 $45,727 97% $5,000
Wasatch $ 38,033 $ 41,836 $ 45,727 83% $ 6,000
Wayne $ 30,201 $ 33,221 $ 45,727 66% $ 6,000

 

For more information and to apply: REDI Information and InstructionsREDI Application 

RURAL FAST TRACK (RFT)

Are you seeking to grow your company?

  • Up to $50,000 in grant funding for qualified projects
  • Incremental funding for new jobs paying above county average wage

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. *Applicant must work with and obtain a letter of support from local city or county economic development representative. The letter must confirm that the local economic developer has reviewed and is in support of the project, the project meets the criteria and explain how the project will promote business and economic development in the local community. Applicants: Please view the application for eligibility Requirements:

  • Be located in a county of the third*, fourth, fifth, or sixth class as described in Utah Code Section 17-50-501
  • Have been in business for at least two years.
  • Have at least two full-time employees
  • Enter into an incentive agreement with the Governor’s Office of Economic Development which specifies performance milestones.
  • Demonstrate how the business development project will promote business and economic development in a rural county.
    • Up to $50,000 for a qualifying business development project
  • Create and retain for at least 12 months new high-paying jobs in a rural county.
    • $1,000 for each new full-time job paying 110% of the county’s average annual wage
    • $1,250 for each new full-time job paying 115% of the county’s average annual wage
    • $1,500 for each new full-time job paying 125% of the county’s average annual wage

*Companies located in a county of the third class may not be located within a city that has a population of more than 20,000 or a median household income of more than $70,000. Downloads:

Rural Rapid Manufacturing Grant

Rural Rapid Manufacturing Grant webinar link

Rural Rapid Manufacturing Grant information & instructions link

Rural Rapid Manufacturing Grant one-pager link

Rural Rapid Manufacturing Grant application link

Application process is open from July 1 – September 1, 2019

The Rural Rapid Manufacturing Grant provides funding to establish laboratories designed to train students and employees to build and improve equipment and offer scholarships.

The state has allocated a one-time $500,000 appropriation for this grant, beginning July 1, 2019, and ending June 30, 2020. Projects must be completed within 18 months from the date the application is approved.

What is Rapid Manufacturing?

Rapid manufacturing means a facility, laboratory, equipment or process engaged in small-batch, fast delivery manufacturing.  

Qualifying Activities of this Grant are:

  • Construction or renovation of laboratories designed to train students and employees in:
    • Clothing production
    • Engineering and computer graphics
    • Manufacturing systems
    • Textile science
  • Building and improvement of equipment to provide training and participation in rapid manufacturing
  • Training and scholarships for students and employees to participate in rapid manufacturing employment opportunities

Qualifying Entities and Counties

Qualifying entities for this grant include institutions of higher education or non-profit companies (501(c)(3); 501(c)(4); 501(c)(5); 501(c)(6) – established within qualifying rural counties.

Qualifying Rural Counties are:

Beaver, Box Elder, Carbon, Daggett, Duchesne, Emery, Garfield, Grand, Iron, Juab, Kane, Millard, Morgan, Piute, Rich, San Juan, Sanpete, Sevier, Uintah, Wasatch, Wayne

Non-qualifying Counties are:

Cache, Davis, Salt Lake, Summit, Tooele, Utah, Washington, Weber

Application Priority

Priority will be given to applicants:

  • Who will serve underprivileged or under-served communities, including communities with high unemployment and/or low median incomes (compared to State of Utah averages)
  • Where an applicant demonstrates comprehensive planning of a project and the cooperation of high-quality partners, including an institution of higher education; and
  • That will create new high paying employment positions in rural areas that pay at least 125 percent of the average wage of the community in which the employment positions will exist

Questions? Please email goedruralprograms@utah.gov

TARGETED BUSINESS TAX CREDITS

Application period deadline for TBTC applications has been extended to March 31, 2019. This extended deadline process will accept applications for a total of $40,000 in refundable tax credits. 

Is your business generating substantial quantities of new jobs or construction?

  • For more information, download the TBTC flyer here.
  • Available in counties with populations of 25,000 or less.
  • Up to $100,000 in tax credits per eligible project.
  • Learn more about the TBTC and Enterprise Zone Designation by watching this video.
  • Targeted Business Tax Credit Application.
  • Learn how to complete the TBTC application here.

The purpose of the Targeted Business Tax Credit (TBTC) program is to encourage private investment and the creation of jobs in rural Utah counties with populations less than 25,000.

What are the Incentives? The Governor’s Office of Economic Development (GOED) may award up to $300,000 of “allocation caps”, with no more than $100,000 being allocated to one project), to businesses with eligible “Community Investment Projects” (CIP) Please note that the TBTC is a “post-performance refundable tax credit”. Post-performance means that tax credit “certificates” may only be applied for when a Community Impact Project (CIP) receives an allocation cap award from the Governor’s Office of Economic Development (GOED) and the Project’s Capital Investment and High Paying Jobs benchmarks/commitments are complete.

What is a Community Investment Project? A CIP is a business development project that includes a significant capital investment, and creates high paying jobs.

What is a Refundable Tax Credit? A refundable tax credit is a tax credit that a claimant may claim regardless of whether for the taxable year, the claimant has a state tax liability.

What Significant Capital Development? Significant Capital Development means investment of at least $100,000 in new construction, expansion, and/or purchase of depreciable equipment.

What is a High Paying Job? A High Paying Job is a full-time position (at least 30 hours a week all year long) that pays at least 110% over the average county wage.

Qualifying business entities/Community Impact Projects must:

  • be located within a current Enterprise Zone Area (please talk to your local Economic Development Director and/or see locate.utah.gov), and,
  • be located in a county with a population of less than 25,000, and
  • hire at least 51% of their employees (including those employees currently employed at the business entity’s facility which is located in an enterprise zone area; or an enterprise zone that is immediately adjacent and contiguous to the county in which the enterprise zone is located).

Businesses that are engaged in the following industries are NOT ELIGIBLE:

  • Construction
  • Retail
  • Public utilities

Businesses may NOT engage in the following:

  • For a taxable year for which a business applicant claims a targeted business tax credit, the business applicant may not claim or carry forward another enterprise zone tax credit.
  • A business may not receive payment for a Rural Fast Track Grant for the same capital investment or jobs for which a business has received a Targeted Business Tax Credit certificate.

For more information about the Targeted Business Tax Credits program, please contact James Dixon (jdixon@utah.gov) or Nan Anderson (nanderson@utah.gov) Please be aware that the Targeted Business Tax Credit is a competitive grant. The number of applications we receive may outnumber our capacity to fund all the great Community Impact Projects.

UTAH RURAL JOBS PROGRAM

The Utah Rural Jobs program enables an eligible small business located in a rural county to expand and create high wage jobs by providing flexible and affordable capital to small businesses in these areas.

Utah Rural Jobs Program

The Utah Rural Jobs Program supports growth and expansion of eligible small businesses by providing flexible and affordable capital.

Who is eligible?

Small businesses eligible for the Utah Rural Jobs program must:

Be located in a rural Utah county
Fall within any of the following industry types:

  • Aerospace
  • Agribusiness
  • Defense
  • Energy and natural resources
  • Financial services
  • Information technology
  • Life sciences
  • Manufacturing
  • Outdoor products
  • Software development

Have fewer than 150 employees, and have less than $10,000,000 in net income for the preceding taxable year.

Conduct principal business operations in the State of Utah; 60 percent of total employees must be in the state currently, or within 180 days after receiving the investment from the Rural Investment Company.

The Utah Rural Jobs Program is available to start-up companies.

Please note that small businesses will work directly with a Rural Investment Company to secure a potential investment and not with the State. All terms and conditions related to a potential investment are strictly between the small businesses and the Rural Investment Company only.

Incentives

Eligible small businesses may receive up to $5,000,000 in capital via a loan from an approved Rural Investment Company (see list below) for business development and expansion needs.

If your business fits the above parameters, and you are ready to expand, please contact one of the following

Utah Rural Jobs Program Authorized Rural Investment Companies:

Advantage Capital Utah Partners I, LLC
909 Poydras Street, Suite 2230
New Orleans, LA 70112
Bo Gustafsson
512-409-7011
bgustafsson@advantagecap.com
Damon Rawie
512-409-7012
drawie@advantagecap.com

Elevation Fund I, LLC
101 3rd Ave. SW., Suite 211
Cedar Rapids, IA 52404
Ryan Barton
rbarton@communityimpactfund.com
(319) 389-6439

Enhanced Capital Utah Rural Fund, LLC
201 St. Charles Avenue, Suite 3400
New Orleans, LA 70170
Shane P. McCarthy
smmccarthy@enhancedcapital.com
(504) 569-7909

VIDEOS, WEBINARS And PRESENTATIONS

To learn more about programs refer to the videos.

Economic Development Videos

Learn about the Beaver Creamery and Peczuh Printing’s economic development opportunities.

Business Expansion And Retention (BEAR)

Learn about the 2019 BEAR grant by watching this video.

EDCUtah Mega Sites Program

Learn more about EDCUtah Mega Sites by watching this video.

Enterprise Zone Tax Credits

Learn about the Enterprise Zone Tax Credit by watching this video.

FY20 BEAR Application and Process 

Learn more about FY20 BEAR Application and Process by watching this video.

Procurement Technical Assistance Center (PTAC)

Learn more about PTAC Contracting Assistance by watching this video.

Rural Co-working and Innovation Center Grant Program (RCIC)

Learn about the 2019 grant by watching this video.

Rural Rapid Manufacturing Grant

Learn about the 2019 grant by watching this video.

Targeted Business Tax Credits

Learn more about the TBTC and Enterprise Zone Designation by watching this video.

Contact Us

_Director

Linda Gillmor

801-558-1908 lgillmor@utah.gov

_Rural Outreach Manager

Rebecca Dilg

801-538-8681 rdilg@utah.gov

_Rural Outreach Manager

James Dixon

801-836-1008 jdixon@utah.gov

_Rural Outreach Manager

Nan Anderson

435-287-4170 nanderson@utah.gov

_Program Support Specialist

Joshua Wiggins

801-538-8775 jcwiggins@utah.gov

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