STATE OF UTAH INCENTIVE Businesses relocating to or expanding in Utah may be eligible for incentives from the state and/or local municipality. The following is a summary of these programs. The Govenor's Office of Economic Development Board (GOED) meets on the second Thursday of each month to review and approve applications for state incentives. Applications submitted by the third Thursday of the preceding month will be considered. EDTIF (Economic Development Tax Increment Financing A post-performance, refundable tax credit 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 to 10 years). It is available to companies seeking relocation and expansion of operations to the State of Utah. For additional information, please visit this link.
Requirements
IAF (Industrial Assistance Fund) A post-performance grant for the creation of high-paying jobs in the state. For additional information, please visit the following link. Requirements
REDI (Renewable Energy Development Incentive) A post-performance refundable tax credit for up to 100% of new state tax revenues (sales, corporate, and withholding taxes paid to the state) over the life of the project (typically 5 to 10 years). For additional information, please visit the following link. Requirements
Recycling Zones More than twenty Utah communities have been designated by the State of Utah as Recycling Market Development Zones. The zone legislation was established to incent businesses to use recycled materials in their manufacturing processes and create new products for sales. It also benefits businesses that collect, process, and distribute recycled materials. For additional information, please visit the following link. Possible Tax Credits Include:
Research Tax Credits Companies doing qualified research in Utah may be eligible for a non-refundable income tax credit of up to 5% of qualified research activities and 6% of qualified investments in research machinery and equipment. For additional information, please visit the following link. Custom Fit Training This program provides specialized traing for companies to train their employees. Custom Fit training is administered through the Utah College of Applied Technology centers, state colleges, and universities. Training may be conducted at Salt Lake Community College campuses, Applied Technology Centers, or a business location. This incentive subsidizes $20,000 total for professional training and requires a company match. For additional information, please visit the following link. Sales Tax Exemption for Manufacturing Equipment Manufacturers (SIC 2000-3999) may be eligible for exemption from sales tax on the purchase of new equipment for Utah plant start-ups. Replacement manufacturing equipment purchases may also be eligible for exemption. For additional information, please visit the following link. IRB (Industrial Revenue Bonds)/IDB's (Industrial Development Bonds) Counties and municipalities issue IRB's/IDB's to promote industrial development and manufacturing facilities in the state of Utah. Funds must be used for manufacturing facilities. There is a $10 million cap per issue and $240 million total annual state allocation cap. RFTP (Rural Fast Track Program) A post-performance is available to small companies in rural Utah. The program provides an efficient way for existing small companies to receive incentives for creating jobs in the rural areas of the state and to further promote business and economic development. For additional information, please visit the following link. Requirements
Enterprise Zone Tax Credits An enterprise zone comprises an area identified by local elected and economic development officials and designated by the state. Certain types of businesses locating or expanding in a designated zone my claim state income tax credits. for additional information, please click on the following link. Motion Picture Incentive Fund A post-performance rebate of production dollars spent in the State of Utah. An approved production is eligible for a rebate up to 25% on every dollar spent in the state. To qualify a production must spend a minimum of $1 million in the state. The incentive is offered as either up to 25% tax credit or a 20% cash rebate for qualifying productions. Productions under $1 million may be eligible for a 15% cash rebate. For additional information, please visit the following link.
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