Enterprise Zone Area Designation Application
THE ENTERPRISE ZONE TAX CREDIT PROGRAM
Note: No new Enterprise Zone Designations will be granted after December 31, 2020!
The Utah Enterprise Zone Tax Credit Program was established
in 1988 to promote economic development and business growth in rural areas of the State of Utah. An Enterprise Zone comprises an area identified by local elected and
economic development officials and designated by the state. Cities under 20,000
in population in counties under 70,000 in population, or an Indian Tribe for
tribal lands are eligible to apply. Designation is
granted after a review of this application on the basis of economic development need and other economic distress factors.
Under this program,
certain types of businesses locating to, or expanding in a designated
Enterprise Zone may claim these tax credits.
WHAT ARE THE TAX CREDITS?
There are two types of tax credits under the
Enterprise Zone—the Job Creation Tax
Credit and the Capital Investment
JOB CREATION TAX CREDIT
$750 tax credit for each new full
time position created within the Enterprise Zone;
additional $500 tax credit if the
new position pays at least 125% of the county average monthly wage non-agricultural payroll wage;
additional $750 tax credit if the
new full-time employee position created within the enterprise zone in in a business entity that adds value to agricultural commodities
through manufacturing or processing;
additional $200 tax credit 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.
CAPITAL INVESTMENT TAX
tax credit of 25% of the first $200,000
spent on rehabilitating a building in the enterprise Zone that has been vacant for at least two
years or more, including that the building has had or contained no occupants, tenants, furniture, or personal property in the time period immediately before the rehabilitation.
annual investment tax credit of 5% of
the first $750,000 in qualifying investment in plant, equipment, or other
Tax credits are available to eligible
businesses in designated enterprise zones from the beginning of the tax year in
which a zone is designated.
Under the Job Creation Tax Credit a
business may claim for up to thirty full-time positions per tax year.
The full amount of a tax credit may be
carried over for three years.
Businesses closing operations in one
rural area to locate in another rural area may not claim tax credits under this
Construction jobs are not eligible for Job
Creation Tax Credits.
Retail businesses (NAICS 44 and 45) and
public utilities are not eligible to claim either the Job Creation or Capital Investment
The GOED Office of Rural Development will contact you by phone or email if we have questions or need additional information. We will expedite your application as quickly as we can. If you have any questions about this process please contact us.
The Enterprise Zone Act is found in Utah Code 63N-2-201 through 215. For more information about tax credits available under this program please contact email@example.com.
Thank you for participating in the Enterprise Zone Tax Credit and for supporting the growth of rural businesses throughout Utah!