State of Utah Economic Development Incentives

State of Utah Incentives

  • Economic Development Tax Increment Financing (EDTIF)
  • Industrial Assistance Fund (IAF)
  • New Market Tax Credits
  • Life Science & Technology Tax Credits

Economic Development Tax Increment Financing (EDTIF)

A post-performance refundable tax credit based on a percentage of ‘new state revenue’ generated by a new project, including the payroll tax of the new employees, corporate income tax, and sales tax.

Incentive is based on the number of new employees, wage level of new jobs (125% of the county average wage), capital investment in the project, purchases from local suppliers, location of the project, and the industry type. Preference is given to the state’s cluster centers – aviation and aerospace, defense and homeland security, lie sciences, outdoor products and recreation, energy and natural resources, financial services, and composite materials. A local incentive and creation of an Economic Development Zone at the project site are requirements for this incentive type.

 

Industrial Assistance Fund (IAF)

A post-performance grant for the creation of high-paying jobs in Utah. Companies expanding in or relocating to the state may apply for incentive grants from the I.A.F. The I.A.F. is a discretionary fund allocated by the state legislature to help encourage job growth. Incentives are paid on a post-performance basis after job creation in yearly increments. Jobs must be retained over the life of the project. The length of the grant is typically 5 years, with an incentive range of $1,000-$3,000 per new job.

  • Urban: creating at least 50 jobs paying at least 125% of the county average wage
  • Corporate HQ: relocation to Utah in which Utah is competing against other states for the project
  • Economic opportunities: relocating or expanding in Utah; ability to expend funds on employees, contractors, vendors, and others proportionate to funding received. The I.A.F. funding ratio is 2:1 for 5 years and displays the ability to repay the loan through new business growth.

New Market Tax Credits

In 2014, the Utah State Legislature enacted the Utah Small Business Jobs Act to attract additional investment in the most severely distressed areas of the state.  New Market Tax Credit programs are an effective tool used by the federal government and 13 states, including Utah, to attract private capital investment in areas in need of job growth and economic development

Life Science and Technology Tax Credits

During the 2016 general session, the Utah State Legislature made changes to Technology and Life Science Economic Development Act giving the Governor’s Office of Economic Development (GOED) authority to issue tax credits to qualifying life science and technology  investors.  Eligible investors may submit applications to GOED for tax credits drawn from $300,000 of funds expressly set aside by the legislature.