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. 

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

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 9 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 the map below for program availability in your location.

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
FY2020 Quarterly Reports and Reimbursement Claims Form

Enterprise Zone Non-Profit

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.

Program 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.
Process
  • 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

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 and Capital Investment Tax Credit

These tax credit 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 and Job Creation Tax Credits

  • A maximum of 30 full-time positions per tax year
  • A $750 tax credit for each new full-time position filled for at least six months during the tax year.
  • 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.
  • An additional $750 tax credit if the new position is in a business that adds value to agricultural commodities through manufacturing or processing.
  • 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:
  • 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.
  • A tax credit of 25% of the first $200,000 spent on rehabilitating a building that has been vacant for at least two years, and which is located within an enterprise zone.
  • 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.

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% income tax credit on the cost of machinery and equipment
  • 20% 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)

Working remotely in rural Utah allows individuals to live, work and play where they love. Opportunities like these are made possible with the robust broadband infrastructure in rural Utah. Watch a short video about one Uintah Basin success story here.

The Rural Economic Development grant incentivizes businesses up to $250,000 for new positions created in rural Utah counties.

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 

Resources
REDI Information and Instructions
REDI Application
Request for Grant Funds

2020 REDI Grant Levels

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 (TBTC)

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.  This is an annual program, and the application process opens on January 1 of each year.

What is the Incentive?
The Governor’s Office of Economic Development (GOED) may award up to $300,000 of Targeted Business Tax Credits, with no more than $100,000 being allocated to one project, to businesses with eligible Community Investment Projects (CIP).

The TBTC is a post-performance refundable tax credit. Post-performance means the application, notice of award and contracting with GOED take place prior to project commencement.  The company then applies to GOED for the TBTC tax credit certificate once the capital investment/project and high paying jobs benchmarks/commitments are met.

For more information:
Learn more about the TBTC  — download the one-page document.
Learn more about the TBTC by watching this video.
Learn how to complete the TBTC application here (opens 1/1/2020 and closes 2/2/2020 at 12:01 am)
Questions?  Contact goedruralprograms@utah.gov

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 the following Rural Investment Companies directly to learn more about their funding options

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.

Business Expansion And Retention (BEAR)

Learn about the 2019 BEAR grant by watching this video.

Economic Development Videos

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

EDCUtah Mega Sites Program

Learn more about EDCUtah Mega Sites by watching this video.

Enterprise Zone Designation Webinar

Learn more by watching the Enterprise Zone Designation webinar here.

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 Economic Development Incentive Grant Webinar (REDI)

Want to learn more details about the REDI grant?  Please watch this webinar.

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 Webinar

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

Contact Us

_Rural Outreach Manager

Rebecca Dilg

801-538-8681 rdilg@utah.gov

_Rural Outreach Manager

James Dixon

801-538-8687 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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