UT Incentives | Finance, Loans, IRB, Workforce Development

A comprehensive list of Utah financial aid, loans, grants, abatements, workforce development, exemptions, funds & capital investment opportunities.


https://businessfacilities.com/2016/03/ut-incentives-and-workforce-development-guide/
A comprehensive list of Utah financial aid, loans, grants, abatements, workforce development, exemptions, funds & capital investment opportunities.
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Utah Incentives and Workforce Development Guide

UT Incentives | Finance, Loans, IRB, Workforce Development

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.

 

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 three 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

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.

Energy Incentives:

  • 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

Rural Fast Track Program: The Rural Fast Track (RFT) Program is a post-performance grant available to companies in rural Utah. The program provides an efficient way for existing companies to receive incentives for creating high paying jobs in the rural areas of the state and to further promote business and economic development.

  • Rural Fast Track Business Development Incentive: 50/50 matching funds up to $50,000 for a qualifying business development project. 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
    • Create at least one new job at 110% of the county average wage
    • 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
  • Rural Fast Track Job Creation Incentive: Provides $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. 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
    • Create and retain new high-paying jobs for at least 12 months in a rural county

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 (Utah Code 63N-2-201 through 215). Any city or county in the state of Utah may be eligible for Enterprise Zone designation. Application for the Enterprise Zone designation must be made by a city with 20,000 or less population located in a county with 70,000 or less population, or an Indian Tribe for tribal lands. There are two types of Enterprise Zone tax credits; 1) the Employee (Job Creation) Tax Credit, and 2) the Capital Investment Tax Credit.

An Enterprise Zone is:

  • an area identified by local elected and economic development officials and designated by the state
  • based on economic development need, its quality and a variety of economic distress factors
  • a city under 20,000 in population in counties under 70,000 population
  • designated tribal lands for Indian Tribes

Criteria for an Enterprise Zone

Is there:

  • Pervasive poverty, unemployment and general distress?
  • Abandonment, deterioration, value reduction in commercial, industrial, residential structures?
  • Potential for new investment?

Will it:

  • Provide employment to unemployed or economically disadvantaged?
  • Demonstrate innovative solutions and local initiatives by the county/city?

Enterprise Zone Employee (Job Creation) Tax Credit: A $750 tax credit for each new full time position filled for at least six months.

  • An additional $500 tax credit if the new position pays at least 125% of the county average monthly wage
  • An additional $750 tax credit if the new position is in a business which 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

Enterprise Zone Capital Investment Tax Credit:

  • 25% of the first $200,000 spent on rehabilitating a building, within an enterprise zone, which has been vacant for at least two years
  • 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

Targeted Business Tax Credit: Is a companion to Enterprise Zone tax credits. It is a refundable tax credit intended for businesses generating substantial quantities of new jobs or new construction. GOED may only issue $300,000 per year. A company may receive up to $100,000 per project.

Recycling Market Development Zones: Focuses on recycling as an economic development tool. As more products are recycled are 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 businesses or individuals that collect, process, distribute recycled materials. Composting is considered to be eligible recycling operation. Eligible businesses located in designated Recycling Market Development Zones qualify for state income tax credits on investments in equipment for the handling and/or consumption of recycled materials. 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

 

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