Targeted Business Tax Credit (TBTC) - Community Investment Project Application

Page 1

The purpose of the Targeted Business Tax Credit (TBTC) is to encourage private investment and job creation in rural Utah counties with populations less than 25,000. The Targeted Business Tax Credit (TBTC) program is available to businesses, located within a designated Enterprise Zone Area, making significant capital investments and/or hiring a significant number of new full-time employees.

The Governor’s Office of Economic Development (GOED) may award up to $300,000 in tax credits per year, with no more than $100,000 being awarded to one project, to businesses with eligible Community Investment Projects. Community Investment Projects will be proposed by applying business entities establishing benchmarks and goals for earning the tax credit.

Please note that the TBTC is a post-performance, refundable tax credit.

Post-performance means tax credit certificates may only be applied for after the completion of an approved Community Investment Project.
A refundable tax credit is a tax credit that may be claimed regardless of whether or not the claimant has a state tax liability.

Calendar

Targeted Business Tax Credit (TBTC) Process:

January 1, 2021 --TBTC-Community Investment Project online application opens

February 1 2021-- Deadline for Applications. Online application closes

The application period may only be extended on approval from the Governor's Rural Partnership Board.

The Governor’s Office of Economic Development (GOED) will notify all eligible applicants if they will receive an allocated tax credit award for their Community Investment Project after review and scoring of all applications.

Application does NOT guarantee you will receive a Refundable Tax Credit allocation. The number of applications we receive may be greater than our capacity to fund all Community Investment Projects around the state.

Is your company eligible?

Eligibilty Quiz

Prior to starting the application process for a Targeted Business Tax Credit (TBTC) - Community Investment Project, and presuming your company is within a county with a population of less than 25,000, please take this brief Eligibility Quiz.

If you answer “NO” to any of questions in the preliminary Eligibility Quiz below, you may not be ready to apply for the TBTC – Community Investment Project program:

The claiming entity is not eligible for the TBTC – Community Investment Project program. Application for tax credit will be denied as this criteria is not met.

Is the Community Investment Project for which you are applying going to be physically located within a current Enterprise Zone Area? (see www.locate.utah.gov)

YesNo

The claiming entity is not eligible for the TBTC – Community Investment Project program. Application for tax credit will be denied as this criteria is not met.

Is the business entity which is applying for a TBTC - Community Investment Project physically located within a current Enterprise Zone Area? (see www.locate.utah.gov)

YesNo

Do at least 51% of the employees that are currently employed at the business entity’s facilities, which is located in an Enterprise Zone, reside in either the county in which the Enterprise Zone is located, or an Enterprise Zone that is immediately adjacent and contiguous to the county in which the Enterprise Zone is located? (State code 63N-2-212)

YesNo

The claiming entity is not eligible for the TBTC – Community Investment Project program. Application for tax credit will be denied as this criteria is not met.

Will you be able to complete your Community Investment Project by December 31, 2022?

YesNo

The claiming entity is not eligible for the TBTC – Community Investment Project program. Application for tax credit will be denied as this criteria is not met.

If you have answered “Yes” to all of the preliminary Eligibility Quiz questions, you may begin the Targeted Business Tax Credit (TBTC)-Community Investment Project application.

What you will need

The TBTC application requires that you have a Letter of Support for your Community Investment Project from your local Economic Development Director or Elected Official over economic development in the Enterprise Zone Area in which the CIP will be located. This must be done prior to the completion of the application!

In order to complete this application you will need to be prepared with the following information:

1) General Information

a. Business Name

b. Federal Tax ID Number

c. Primary NAICS Code

d. Contact information—address, phone, email, etc.

e. Project information—address, county, etc.

f. Company W9 Form

2) Detailed Scope of Work of project

a. Significant capital investment

b. How the work will be accomplished

c. Time frame

d. Anticipated results of finished project

e. Significant new employment, number and wages

3) Detailed description of project economic impact

a. How the project coordinates with goals of the Enterprise Zone

b. How the project coordinates with overall economic development goals of county/city. (Discuss these goals with your local Economic Development representative, or with an elected official)

4) Project Budget—estimates, bids, etc.

5) Project Timeline—build out, hiring, purchasing, etc.

6) Utah Employer Quarterly Wage List and Contribution Reports (DWS 33H) for four quarters

7) Maps, drawings, blue prints or renderings associated with proposed project

8) Letter of Support from local Economic Development Director or Elected Official

For further program clarity, please read the Terminology Definitions used for the Targeted Business Tax Credit Program.

Open Terminology Definitions

Terminology Definitions

Qualifying “Business Entity”:

- a business located within an enterprise zone area (see www.locate.utah.gov), and,

- residing in a county with a population of less than 25,000 and,

- employing at least 51% of the employees (including those employees currently employed) at the business entity's facility which is located in an enterprise zone area, or an enterprise zone that is immediately adjacent and contiguous to the county in which the enterprise zone is located.

“Community Investment Project (CIP)”: a project that the business applicant is proposing that includes significant capital investment and/or significant new employment.

Enterprise Zone Area: An Enterprise Zone Area is a designation by the Governor's Office of Economic Development after having received (and approved) a request for Enterprise Zone designation from the governing body of a qualifying rural city, county or tribe. To see if your business or Community Investment Project is within a current Enterprise Zone Area, go to locate.utah.gov . Select the red "Economic Development" bar, and check the "Enterprise Zones" box. A red colored overlay identifies areas within a current Enterprise Zone Area.

“Capital Investment”: new construction, expansion, and/or purchase of depreciable equipment.

“New employment”: employees hired after the TBTC-CIP application is submitted and receives an allocation cap compared to current number of employees as claimed on TBTC application.

“High-paying Jobs”: Full-time jobs paying a wage which will be compared to the county average wages. Proposals from businesses for hiring full-time employees above the county average wage will be more favorable than those that do not.

“Full-time”: at least 30 hours per week.

“Allocation Cap": The amount of potential refundable tax credit that an approved Community Investment Project has been allotted.

“Refundable Tax Credit”: A tax credit that a claimant may make regardless of whether or not the claimant has a state tax liability for the taxable year.

“Targeted Business Tax Credit (TBTC) Eligibility Certificate”: Document provided by the GOED Office to a business applicant (having received an allocation cap) and necessary to claim a refundable targeted business income tax credit.

“Annual post-performance reporting”: Required reporting to notify GOED of annual CIP progress and/or completion of CIP.

Please contact goedruralprograms@utah.gov with any questions or concerns regarding the Targeted Business Tax Credit (TBTC) program. Please contact Kristen Jensen, kjensen@utah.gov, for technical assistance with this portal.

Please proceed to the full application

Page 2 - General Information

Input your address and business information below. The address must be within an Enterprise Zone Area. If the provided business address is not in an Enterprise Zone the application will be rejected.

Business Entity Information - All Questions are Required

Business Entity Name

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.

Federal Tax ID Number

What is the primary NAICS code of the business entity applying?

If you need assistance please visit the NAICS Association to identify your company's NAICS code.

Please note: The following business entities are NOT eligible to apply:

o Construction;

o Retail Trade; or

o Public Utility

How many years has this business entity been in business?

How many current employees does the applying business entity have?

Please note: The number you enter here should be the same number which appears on your most recent DWS filing. You will be required to upload copies of your DWS form 33-H in order to establish an employee baseline and to determine projected numbers of new employees.

Contact Information

Name of contact person applying:

Contact Title

Contact Phone

Contact Email

Business Entity Mailing Address

Please input your mailing address below.

Business Street Address

Business Street Address 2

Business City

Business State

Business ZIP

Is the physical address of your business entity different than the above mailing address?

YesNo

Is the physical address of the Community Investment Project being applied for different than the above mailing address?

YesNo

Business Entity Physical Non-Mailing Address

Your business entity's physical address is different than the above.

Entity Physical Street Address

Entity Physical Street Address 2

Entity Physical Business City

Entity Physical Business State

Entity Physical ZIP

Entity Physical County

Community Investment Project Physical Address

Your Community Investment Project physical address, if different than the business entity mailing address above.

Community Investment Project Street Address

Community Investment Project Street Address 2

Community Investment Project Business City

Community Investment Project Business State

Community Investment Project ZIP

Community Investment Project County

Page 4 - Project Attachments

Project Support Documentation

Please provide the following items in relation to your Community Investment Project:

Budget for the Project;

Please note: The budget for the project will be used to set benchmarks to determine project completion and Targeted Business Tax Credits Eligibility Certificates issued. Projects with higher capital investment and/or new jobs and associated wage level will receive higher ranking.

Timeline for Project completion; (must be completed no later than December 31, 2022)

Please note: The timeline for the project will be used to set benchmarks to determine project completion and Targeted Business Tax Credits Eligibility Certificates issued. Projects with higher capital investment and/or new jobs and associated wage level will receive higher ranking.

To determine the baseline for calculating new full-time employees, please upload the Utah Employer Quarterly Wage List and Contribution Reports (DWS form 33-H) that have been filed for the four quarters prior to this application.

Please upload any maps associated to the proposed Community Investment Project (.pdf format only)

Please upload any drawings, blue prints or renderings related to the proposed Community Investment Project (.pdf format only)

Please upload any additional documentation related to the proposed Community Investment Project such as cost estimates, bids, etc., that may help in the review of your application (.pdf format only)

Please upload a Letter of Support for your Community Investment Project from your local Economic Development Director or Elected Official over economic development in the Enterprise Zone Area in which the CIP will be located.

Please upload the company W9 Form

Page 5 - Submission and Compliance

Final Confirmation

A TBTC allocation also requires the business to file an annual post-performance report. Please click "yes" if you agree to abide by annual post-performance reporting requirements, should you receive an allocation.

Yes

Please certify below that the data you submitted is accurate and that you understand it may be tested for validity.

Yes

Thank you for submitting your application. Our staff will review your application and contact you soon. If your application is approved for a Targeted Business Tax Credit (TBTC) allocation, you will be notified of the cap amount, instructions and dates for reporting. The staff may contact you for further documentation, if needed.