Governor's Office of Economic Development

Enterprise Zone Tax Credit - Capital Investment Credit

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PLEASE NOTE THAT ALL APPLICATIONS ARE DUE 4 WEEKS PRIOR TO ANTICIPATED TAX FILING

 The Enterprise Zone Tax Credit program is available to businesses located within a designated Enterprise Zone Area. The purpose of the tax credit is to encourage investment in rural Utah businesses and to create jobs.


Prior to starting this application, please confirm that your business is eligible to apply for the tax credit with your county or tribal economic development office to confirm your business is in a designated Enterprise Zone Area.  

 

This application covers the Capital Investment Tax Credit only. For the Employee Tax Credit Application please submit an application here. Businesses in the designated Enterprise Zone Area are eligible to submit both applications. If an award is made for each application they will be combined into one tax credit.

 


ENTERPRISE ZONE TAX CREDITS:

The following tax credits may be claimed by eligible businesses locating or expanding within an enterprise zone area.

 

Investment Tax Credit

  1. A tax credit of 25% of the first $200,000 spent on rehabilitating a building in the enterprise zone that has been vacant for two years or more; and/or
  2. An annual investment tax credit of 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.


Instructions

Before filing an Investment & Building Rehabilitation Tax Credit application you will need the following documents: 

City Occupancy Permit

•      Notarized Vacancy Letter

•      Receipts demonstrating investment

•      Signed letter of certification


Receipts/invoices/bill of sales/etc. showing:

Entire purchase price paid for qualifying investment in plant, equipment, or other depreciable property and documentation to show amount paid by applicant such as loan documentation or check detail and bank statement detail.

For investment in a building rehabilitation:

Documentation includes documents showing current owner such as deed or mortgage documents. 

Notarized vacancy letter

Current occupancy permit or certificate

Receipts and paid invoices of all rehabilitation expenses totaling the amount the tax credit is calculated             from, check detail and bank statement detail to validate the entire amount paid.


As we do have a large amount of applicants for the Enterprise Zone Tax Credit, the sooner we receive all the documentation means the sooner we can begin the process. Thank you for working with us and we apologize for any confusion.


For more information refer to Enterprise Zone statute and Enterprise Zone rules.


Tax Credit Process:

1. Fill out the application.

2. Eligibility will be confirmed and reviewed.

3. You will receive a tax credit certificate for qualifying expenditures. The Enterprise Zone Tax Credit is filed with your Utah State Income Tax. 

4. If the amount of a tax credit under this section exceeds a business entity's tax liability under this chapter for a taxable year, the business entity may carry forward the amount of the tax credit exceeding the liability for a period that does not exceed three taxable years.

5. Carefully read each question and provide accurate answers.

6. Your application must be accompanied by documentation that supports your submission. 

7. Each Enterprise Zone applicant is required to sign an letter of certification which has been approved by the state (as described in 63N-2-243). Please print attachment, complete form, sign, and submit with requested documentation.  

 

Please contact Jim Grover, jimgrover@utah.gov, with any questions or concerns regarding the Enterprise Zone program. Please contact Jaron Janson, jjanson@utah.gov, for technical assistance with this portal.

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Please click, "Next Page" to continue.

Entity Eligibility Information
Complete the questions on this page to determine whether the claiming entity is eligible for the Enterprise Zone employment related tax credit. 




















Page 3 - General Information

Input your address and business information below. The enterprise zone address must be within an Enterprise Zone Area. If the provided business address is not in the Enterprise Zone the application will be rejected. If your headquarters or preferred business address is different than the enterprise zone address, please input that address into the other business address fields below.

Company Contact Information - All Questions are Required
This is the company name on your Utah state tax return. If you are claiming this credit on your individual income tax return please use your name here.
Please enter the email address where you would like to receive correspondence and the digital Certificate of Approval. 
Company Specific Data All Questions are Required
 This code will determine if you are eligible for certain types of credits in this application.
If you are claiming this credit on your individual income tax return please use your Social Security number here.

Value-added Agriculture: a change in the physical state or form of a product in a manner that enhances its value, thus expanding the customer base of the product. Examples include milling wheat into flour or making strawberries into jam.

Enterprise Zone Address

Please input your Enterprise Zone business address below. Addresses not located within an Enterprise Zone Area will be ineligible. Go here to verify that your address is in an Enterprise Zone. Please note that businesses located in Cache, Salt Lake, Davis, Weber, Utah, and Washington Counties are not eligible for a tax credit. 

 

The Enterprise Zone Physical Address fields below are for the physical address of the business location within the Enterprise Zone Area.

Preferred Mailing Address

Your preferred mailing address if different than the above. This address can be outside of the Enterprise Zone.
Not Required.

Page 4 - Private Capital Investment

Please complete this section to be eligible for a tax credit of 25% of the first $200,000 spent on rehabilitating a building in the enterprise zone that has been vacant for two years or more. 

If you are not submitting for a building rehabilitation credit, please skip this section.
Rehabilitated Building Address

Please input the exact rehabilitated building address. Addresses not located within an Enterprise Zone Area will be ineligible. Go here to verify that your address is in an Enterprise Zone.

Rehabilitated Building Investment Details
The dollar amount your company has invested in the building.

The expenditure input in Question 9 should be detailed in the receipts and documentation attached here.

The expenditure input in Question 9 should be detailed in the receipts and documentation attached here.

The expenditure input in Question 9 should be detailed in the receipts and documentation attached here.



Second Rehabilitated Building Address

Please input the exact rehabilitated building address. Addresses not located within an Enterprise Zone Area will be ineligible. Go here to verify that your address is in an Enterprise Zone.

Second Rehabilitated Building Investment Details
The dollar amount your company has invested in the building.

The expenditure input in Question 9 should be detailed in the receipts and documentation attached here.

The expenditure input in Question 9 should be detailed in the receipts and documentation attached here.

The expenditure input in Question 9 should be detailed in the receipts and documentation attached here.



Third Rehabilitated Building Address

Please input the exact rehabilitated building address. Addresses not located within an Enterprise Zone Area will be ineligible. Go here to verify that your address is in an Enterprise Zone.

Third Rehabilitated Building Investment Details
The dollar amount your company has invested in the building.

The expenditure input in Question 9 should be detailed in the receipts and documentation attached here.

The expenditure input in Question 9 should be detailed in the receipts and documentation attached here.

The expenditure input in Question 9 should be detailed in the receipts and documentation attached here.


Page 5 - Private Capital Investment

Qualified private capital investment made during a tax period may qualify for a tax credit of 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 within the enterprise zone area for a that tax period.  

If the amount of a tax credit under this section exceeds a business entity's tax liability under this chapter for a taxable year, the business entity may carry forward the amount of the tax credit exceeding the liability for a period that does not exceed the next three taxable years.

If you are not submitting for a private capital investment credit, please skip this section.
Property Investment Details
We will be verifying each expense amount and the source that paid it (R357-15-4).  For example: for each provided invoice, we will need to verify where the payment came from. The required documentation can change depending on the method used to purchase (e.g. if an item was purchased with a check, we would need to see a copy of the check and the bank statement to verify the check was paid; if a credit card was used, we would need to see a receipt from the transaction and the credit card statement; signed loan contracts may be sufficient documentation for property/equipment purchases).

If an item and/or expense falls outside of the calendar year for which you are submitting, please list the date it was placed into service.
Provide the dollar amount of property investment eligible to be claimed.

The amount in Question 1 should be demonstrated by the attached receipts and documents.

The amount in Question 1 should be demonstrated by the attached receipts and documents.

The amount in Question 1 should be demonstrated by the attached receipts and documents.

Page 6 - Submission and Compliance

PLEASE NOTE THAT ALL APPLICATIONS ARE DUE 4 WEEKS PRIOR TO ANTICIPATED TAX FILING
Thank you for submitting your application. Our staff will review your application and contact you soon. Please certify below that the data you submitted is accurate and that you understand it may be tested for validity. Our staff or staff from the Utah State Tax Commission may contact you for further documentation if needed to verify claims made in this submission.

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