Enterprise Zone Tax Credits
Incremental Tax Credits for New Jobs Paying Above County Average Wage and Capital Investment Tax Credit
These tax credits may be claimed by eligible businesses locating or expanding in enterprise zones on Utah state income tax forms.
- A maximum of 30 full-time positions per tax year
- A $750 tax credit for each new full-time position created above the subsequent taxable year's highest number of full-time positions that existed.
- An additional $500 tax credit if the new position pays at least 125% of the county average monthly nonagricultural payroll 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 entity that adds value to agricultural commodities through manufacturing or processing.
- An additional tax credit of $200 may be claimed for each new full-time employee position created within the enterprise zone that is filled by an employee who is insured under an employer-sponsored health insurance program if the employer pays at least 50% of the premium cost for the year for which the credit is claimed.
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 opportunity 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 including that the building has had or contained no occupants, tenants, furniture, or personal property for at least two years, in the time period immediately before the rehabilitation, and which is located within an enterprise zone.
- An annual investment tax credit may be claimed in an amount equal to 5% of the first $750,000 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 if reasonably expected to diminish employment in that part of the state except in first or second class. 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
- Enterprise Zone Tax Credit – Employee Credit Application 20, '21, & '22
- Enterprise Zone Tax Credit – Capital Investment Credit Application 20, '21, & '22
- Enterprise Zone Expiration and Contact List
- Utah Enterprise Zones Map
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 Opportunity prepare returns for taxpayers and cannot advise taxpayers to the extent we are not their accountants or legal representatives.
For technical support contact the compliance team (firstname.lastname@example.org). 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 email@example.com