Due to legislative changes, Utah businesses filing for the Enterprise Zone Tax Credit will receive a reduced amount starting July 1, 2020.
During the 2020 General Session, the Legislature passed S.B. 95, Economic Development Amendments (Sandall, S.), that made several adjustments to incentives for rural Utah, including changes to the Enterprise Zone program. One notable change is the percentage of tax credit that can be received when a company operating within an Enterprise Zone invests in plant, equipment or other depreciable property.
Before the S.B. 95 changes, a company would receive 10% of the first $250,000 in investment and 5% on the next $1,000,000. With the changes, as of July 1, a company will only be able to receive a tax credit of 5% of the first $750,000.
Applicants who filed for the tax credit before July 1 and have provided sufficient documentation, as determined by the Utah Governor’s Office of Economic Development (GOED), to calculate the award will receive the higher award if GOED has not been able to fully process the tax credit after June 30.
Applicants who have been contacted by GOED to provide additional information can still provide documentation before midnight on June 30, and receive the full amount. Any information received for applications before July 1, but found insufficient for GOED to process a tax credit, will be reduced to a 5% tax credit.
Forms and other documents that help applicants calculate and apply for the Enterprise Zone Tax Credit will be available here on July 1.
Please direct Enterprise Zone Tax Credit questions to Jim Grover, GOED’s compliance director, at jimgrover@utah.gov.