The EDTIF tax credit is a post-performance, refundable tax credit rebates for up to 30% of new state revenues (sales, corporate and withholding taxes paid to the state) over the life of the project (typically 5-10 years). It is available to companies seeking relocation and expansion of operations to the state of Utah.

Policy:

• Maximum credit of up to 30% over the life of the project
• No more than 50% credit in any one year
• The life of the incentive is typically 5 – 10 years
• New jobs created must pay at least 110% of the county average wages within both rural and urban communities and be within a specific target industry
• No retail business operations
• New project must be in competition with other locations
• GOED does not review projects with businesses less than three years in operation and that cannot show consistent profitability

Requirements:

• Create new high-paying jobs in the state
  • At least 50 jobs in urban counties
  • At least 110% of urban county average wage or 110% of rural county average wage
• Generate new tax revenues
• Significant capital investment
• Significant purchases from Utah vendors or suppliers
• Obtain commitment from local government to provide local incentives and establish an Economic Development Zone
• Enter into an incentive agreement with the Governor’s Office of Economic Development which specifies performance milestones

Downloads:

• Wage criteria for 2021 incentives
• Wage criteria for 2020 incentives

A post-performance grant for the creation of high-paying jobs in the state.

Requirements:

• Create new high-paying jobs in the state
  • At least 50 jobs in urban counties
  • At least 110% of urban county average wage or 110% of rural county average wage
• Obtain commitment from local government to provide local incentives
• Enter into an incentive agreement with the Governor’s Office of Economic Development which specifies performance milestones.
• Demonstrate company stability and profitability
• Demonstrate competition with other locations

Downloads:

• FIQ Instructions
• 2010 IAF Legislation
• Air Quality Incentive Application

In 2014, the Utah State Legislature enacted the Utah Small Business Jobs Act to attract additional investment in the most severely distressed areas of the state.  New Market Tax Credit programs are an effective tool used by the federal government and 13 states, including Utah, to attract private capital investment in areas in need of job growth and economic development.

During the 2016 general session, the Utah State Legislature made changes to Technology and Life Science Economic Development Act giving the Governor’s Office of Economic Development (GOED) authority to issue tax credits to qualifying life science and technology  investors.  Eligible investors may submit applications to GOED for tax credits drawn from $300,000 of funds expressly set aside by the legislature.

Investment:

• Post-performance nonrefundable tax credit for up to 35% of the investment over three years
• Up to 10% of the purchase price of the qualifying ownership interest in the year the qualifying ownership interest is purchased
• Up to 10% of the purchase price in the second year after the qualifying ownership interest is purchased
• Up to 15% in the third year after the qualifying ownership interest is purchased
• Tax credits for Utah life science entities capitalized under $2,500,000
• To qualify, an investor must invest at least $25,000 and not have more than a 30% ownership interest in the business entity at the time of investment
• To qualify, the investment may not be finalized prior to application and formal approval of the tax credit
• No credit may exceed $350,000 in any year
• Not permitted to carry forward or carry back

Application Deadlines:

• September 1st
• December 1st
• March 1st
• June 1st

Investment Tax Credit Application

Technology and Life Science Tax Credit Rules