Utah Incentives and Workforce Development Guide

For a list of Utah economic development agencies that can help with the site selection process, visit our Online Site Seekers’ Guide.

 

FINANCING & GRANTS

Industrial Assistance Fund (IAF): A post-performance grant for the creation of high-paying jobs in the state. Requirements:

  • 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.
  • 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 wage
  • Demonstrate company stability and profitability
  • Demonstrate competition with other locations

Private Activity Bond: Utah’s tax-exempt bonding authority creating a lower cost, long-term source of capital.

Rural Fast Track Program: 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. 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

 

TAX INCENTIVES

EDTIF Tax Credit: The Economic Development Tax Increment Financing (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. 

  • 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 five to 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 in business less than 3 years and that cannot show consistent profitability.

Requirements:

  • 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.
  • 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 wage
  • Generate new tax revenues.
  • Significant capital investment
  • Significant purchases from Utah vendors or suppliers

Enterprise Zones: Under the program, certain types of businesses locating to, or expanding in a designated zone may claim state income tax credits provided in the law. Any city or county in the state of Utah may be eligible for enterprise zone designation. Application for designation must be made by a city with 10,000 or less population located in a county with 50,000 or less population or an Indian Tribe for tribal lands.

Motion Picture Incentive Program (MPIP): A post performance incentive of up to 25% of total dollars spent in the state on film productions in the form of a cash grant or refundable tax credit.

Recycling Market Development Zones: 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. 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

Renewable Energy Development Incentive (REDI): A post-performance refundable tax credit for up to 100% of new state revenues (state corporate/partnership income, sales and withholding taxes) over the life of the project (up to 20 years) for renewable/alternative energy generation and related manufacturing. 

Utah Recycling Market Development Zones: Businesses within a Recycling Zone can claim state income tax credits on the investment in eligible equipment for the handling and/or consumption of recycled materials. 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