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.
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.
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
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.