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) or download this PDF 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 created above the subsequent taxable year full-time positions.
  • 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 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, 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. 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 Opportunity 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