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

Rural Economic Development Initiative (REDI)

Learn about the 2019 REDI grant by watching this video.

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 counties of the fourth, fifth or sixth class (populations of less than 31,000). These jobs can be remote, in a satellite hub/office, or physically located in the same county as the business.

Who is eligible?

Businesses not primarily engaged in construction, retail, staffing or public utilities industries are eligible to apply. A business considering the REDI grant must apply for and receive approval through GOED in advance of creating a new position.

The company will enter a written agreement with GOED and must demonstrate that the new jobs:

• Are created in addition to the highest baseline count of employment positions that existed within a business entity during the previous taxable year
• Pay at least 125 percent of the average county wage
• Are filled by an employee who works at least 30 hours per week
• Will exist for at least 12 consecutive months
• Are not filled by an immediate family member of an officer or owner of the company

Incentives:

A business entity may qualify for up to $25,000 in rural employment expansion grants each fiscal year.

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

The REDI Grant Levels Table provides county-specific information.

REDI Grant Levels

4th, 5th, 6th
Class 
Counties (<31,000 Population)

 2018 County
Ave Wage

 125% County
Ave Wage
  2018 State Of Utah Ave Wage  Percent State
Ave Wage

 Potential
Job Incentive

Beaver $ 33,542 $ 41,927.50 $ 44,459 0.75 $ 6,000
 Carbon $ 38,649 $ 48,311.25 $ 44,459 0.87 $ 5,000
 Daggett $ 31,725 $ 39,656.25 $ 44,459 0.71 $ 6,000
 Duchesne $ 44,387 $ 55,483.75 $ 44,459 1.00 $ 4,000
 Emery $ 43,571 $ 54,463.75 $ 44,459 0.98 $ 5,000
Garfield $ 29,634 $ 37,042.50 $ 44,459 0.67 $ 6,000
Grand $ 31,231 $ 39,038.75 $ 44,459 0.70 $ 6,000
Juab $ 35,384 $ 44,230 $ 44,459 0.80 $ 6,000
Kane $ 31,180 $ 38,975 $  44,459 0.70 $ 6,000
Millard $ 40,605 $ 50,756.25 $ 44,459 0.91 $ 5,000
Morgan $ 36,737 $ 45,921.25 $ 44,459 0.83 $ 6,000
Piute $ 26,519 $ 33,148.75 $ 44,459 0.60 $ 6,000
Rich $ 26,175 $ 32,718.75 $ 44,459 0.59 $ 6,000
San Juan $ 35,244 $ 44,055 $ 44,459 0.79 $ 6,000
Sanpete $ 28,623 $ 35,779 $ 44,459 0.64 $ 6,000
Sevier $ 33,804 $ 42,255 $ 44,459 0.76 $ 6,000
Wasatch $ 37,266 $ 46,582.50 $ 44,459 0.84 $ 6,000
Wayne $ 28,468 $ 35,585 $ 44,459 0.64 $ 6,000

 

For more information and to apply:

REDI Application for Review Only
REDI Information and Instructions
REDI Application

BUSINESS EXPANSION AND RETENTION (BEAR)

Learn about the 2019 BEAR grant by watching this video.

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

  • 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.

The office of Rural Development also hosts training seminars called “Train the Trainer”. These seminars are used to educate local BEAR representatives, elected officials, and other economic development stakeholders on the various resources found throughout the state.

For more information and to apply:

Business Expansion and Retention (BEAR): Economic Development Projects Grant Application Information and Instructions

Business Expansion and Retention (BEAR): Economic Development Projects Grant Application

Business Expansion and Retention (BEAR) Quarterly Reports and Reimbursement Claims Form

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:

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. After entering that data click the grey ‘Get Summary’ button in the upper left-hand corner, which will generate a report. Scroll down and expand the red section entitled Workforce to identify approved Enterprise Zone, the expiration year, the Point of Contact name, telephone, and email address.
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? 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 4 weeks before the 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 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? 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 4 weeks before the 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. Once you have the certificate you can claim the Enterprise Zone tax credit.
6 Construction jobs are not allowed for the job creation tax credits, but can construction companies continue to claim investment credits? As provided in Statute 63N-2, there is no exclusion for construction companies claiming the investment tax credits.
7 Is it correct that retail companies may not claim either the job creation or investment tax credits? 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.
8 Can the Enterprise Zone tax credits flow down to shareholders/partners? Pass-through entities cannot claim nonrefundable tax credits, which the job creation and investment tax credits available under the Enterprise Zone tax credit are identified as nonrefundable tax credits. The credit would 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)? 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.
15 What supporting documentation is needed to support a qualifying investment in plant, equipment, or other depreciable property? As provided in Statute 63N-2, documentation must include invoices, receipts, bill of sale, etc. showing the entire purchase price and documentation to show amount paid by applicant such as loan documentation or check detail and bank statement detail. Please provide the percent of business use as applicable. Please refer to the instructions in the portal for additional instructions and other additional information needed.
16 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.
17 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 cannot be claimed for the Enterprise Zone tax credit. The policy decision, made by the Office of Rural Development, limits this tax credit, as it applies to qualifying investments in plant, equipment, or other depreciable property, to tangible assets only.
18 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/
19 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.
20 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.
21 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.
22 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.
23 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.

28 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.
29 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.
30 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.
31 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. The signed certification letter needs to be uploaded as part of the application.
32 Can a third party sign for the client? 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.
33 What is the current definition of “primarily engaged in retail trade?” Retail store locations are not eligible for this tax credit.
34 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.
36 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/.
40 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.
42 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.
43 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.
45 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.
46 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.


Related Links:

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

ENTERPRISE ZONE NON-PROFIT

The Enterprise Zone Non-profit tax credit application is now open. 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.

TARGETED BUSINESS TAX CREDITS

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

  • Available in counties with populations of 25,000 or less
  • Up to $100,000 in tax credits per eligible project

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.

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:

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.

Contact Us

_Director

Linda Gillmor

801-538-8804 lgillmor@utah.gov

_Rural Outreach Manager

Rebecca Dilg

(801) 538-8880 rdilg@utah.gov

_Rural Economic Development Outreach Specialist

James Dixon

801-538-8687 jdixon@utah.gov

_Outreach Development Manager

Nan Anderson

435-287-4170 nanderson@utah.gov

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