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. Of the 21 eligible Private Activity Bond categories, Utah allocates volume cap to the following six categories: Affordable Single Family Housing, Manufacturing, Affordable Multi-Family Housing, Qualified Redevelopment Projects, Student Loans and Exempt Facilities, e.g., pollution, waste control, etc.
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.
- Renewable Energy Systems Tax Credit: can be applied to both residential and commercial installations utilizing solar photovoltaic, solar thermal, wind, geothermal, hydro and biomass technologies.
- Alternative Energy Development Incentive (AEDI): A post-performance credit for the construction of electricity generation facilities of 2 megawatts or greater that utilize hydroelectric, solar, biomass, geothermal, wind, and waste-heat. It also includes energy derived from nuclear fuel, oil-impregnated diatomaceous earth, oil sands, oil shale or petroleum coke.
- High Cost Infrastructure Tax Credit (HCITC): An incentive that supports investments in qualifying cost-intensive infrastructure projects, such as energy delivery systems, water delivery systems, road improvement and railroads.
Office of Rural Development Incentive Programs
Alternative Energy Tax Credit —This tax credit encourages market-based tax incentives to drive new investment opportunities that diversify, enhance and expand Utah’s energy portfolio. The post-performance tax credit encourages private-sector investment, creates high-quality jobs and fosters smart growth. Tax credits are available for renewable energy and alternative energy installation, commercial and residential projects.
Economic Development Tax Increment Financing: The Economic Development Tax Increment Financing (EDTIF) program was created to foster and develop key industry sectors in Utah, provide additional employment opportunities and improve the state’s economy. Used to help attract new companies to the state, it offers a tax rebate of up to 30% of new state taxes paid for up to 20 years to companies that create at least 50 jobs that pay wages of 100% of the county average. EDTIF contracts are post-performance, only providing a state tax rebate if the company meets its obligations.
Enterprise Zone Nonprofit Tax Credit: The Enterprise Zone Nonprofit Tax Credit encourages private donations to 501(c)(3) organizations. Tax credits are issued to donors for 50% of their investment in approved projects that spur community and economic growth in rural Utah.
Enterprise Zone Tax Credit: Businesses within an Enterprise Zone can apply for and be awarded state income tax credits of up to $75,000 for investing in depreciable assets including machinery and equipment, creating new, above-average wage jobs and the rehabilitation of older facilities.
Hotel Convention Tax Credit: The Hotel Convention Tax Credit was designed to encourage the development of a co-located Utah hotel and convention space, it provides a post-performance tax rebate of up to $75,000,000 up to 20 years.
Life Science Tax Credit: The Life Science Tax Credit was created to encourage investment in Utah’s life science businesses and to create jobs. It offers a post-performance tax credit of up to 35% of equity investments in life science companies for up to three years.
New Market Tax Credit: The New Market Tax Credit was created to attract additional investment in the most severely distressed areas of the state. It’s a parallel state program to the federal New Market Tax Credit Program and is designed to use $50 million raised by Private Community Investment Firms, designated by the IRS as Community Development Entities (CDE), to make investments into small businesses within distressed areas. Tax credits are provided to the investors of the program.
Recycling Market Development Zone Tax Credit: The Recycling Market Development Zone (RMDZ) was designed to attract business growth to Utah’s industrial and manufacturing industries, it incentivizes businesses to remove recyclable materials from solid waste streams or to use recyclable material to create new marketable products. Participating companies receive tax credits on purchases of equipment and/or labor and materials used in the establishing and operating recycling technology of renewables.
Rural Economic Development Incentive: A post-performance grant that incentivizes businesses to create new, high-paying jobs remotely, online, in a “satellite hub” or physically located in qualifying rural Utah counties.
Rural Fast Track: Offers up to $50,000 in grant and incremental funding for new jobs that pay greater than the county average wage.
Targeted Business Tax Credit: The Targeted Business Tax Credit (TBTC) program encourages private investment and the creation of jobs in rural Utah counties with populations less than 25,000. The program offers up to $300,000 to businesses with eligible Community Investment Projects (CIP). The awards to qualifying businesses are refundable tax credits, and may not exceed $100,000 per company.
Utah Rural Jobs Act: The Utah Rural Jobs Act enables an eligible small business located in rural Utah to expand and create high wage jobs by providing flexible and affordable capital. Like the New Market Tax Credit program, tax credits are provided to the investors of the program. The program has three types of participants: 1) Investors who provide capital investment to a Rural Investment Company (RIC), 2) Rural Investment Companies that raise funds for investors to be invested in eligible small businesses, and 3) Eligible small businesses that may receive up to $5 million in capital for business development and expansion needs.