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 Employee Tax Credit only. For the Capital Investment 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.
Carefully read each question and provide accurate answers. The following tax credits may be claimed by eligible businesses locating or expanding within an enterprise zone area.
The Employee Tax Credit
1. A tax credit of $750 may be claimed by a business entity for each new full-time employee position created within the enterprise zone;
2. An additional $500 tax credit may be claimed if the new full-time employee position created within the enterprise zone pays at least 125% of the county wage;
3. An additional tax credit of $750 may be claimed if the new full-time employee position created within the enterprise zone is in a business entity that adds value to agricultural commodities through manufacturing or processing;
4. An additional tax credit of $200 may be claimed for two consecutive years for each new full-time employee position created within the enterprise zone that is filled by an employee who is insured under an employer-sponsored health insurance and the employer pays at least 50% of the premium cost for the year for which the credit is claimed.
Before filing an Employee Tax Credit application you will need the following documents:
• Download Employee Template
• Download Employee Health Care Template
• Employee company health care policy that outlines premium price and what is covered by the company
• Signed letter of certification
Employee documentation includes, but is not limited to:
Employee lists including employee:
• Hourly rate
• Gross salary
• Gross benefits
• Hire date
• Termination date as well as additional information necessary to validate additional employment-related tax credits claimed
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, email@example.com, with any questions or concerns regarding the Enterprise Zone program. Please contact Jaron Janson, firstname.lastname@example.org, for technical assistance with this portal.