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James Dixon
Rural Economic Development Outreach Specialist
801.538.8687

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Nan Anderson
Rural Development Outreach
435-287-4170

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Targeted Business Tax Credit

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.