Enterprise Zone Area Designation Application
THE ENTERPRISE ZONE TAX CREDIT PROGRAM
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 and filled for at least six
additional $500 tax credit if the
new position pays at least 125% of the county average monthly wage for the
respective industry (determined by the Utah Dept. of Employment Security). In
the event this information is not available for the respective industry, the
position must pay at least 125% of the total average monthly wage in the
additional $750 tax credit if the
new position is in a business which adds value to agricultural commodities
through manufacturing or processing.
additional $200 tax credit, for two
consecutive years, for each new employee insured under an employer sponsored
health insurance program if the employer pays at least 50% of the premium.
CAPITAL INVESTMENT TAX
tax credit of 25% of the first $200,000
spent on rehabilitating a building which has been vacant for at least two
years, and which is located within an enterprise zone.
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
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 James Dixon at the Governor's Office of Economic Development. Phone: (801) 538-8687; email: email@example.com.
Thank you for participating in the Enterprise Zone Tax Credit and for supporting the growth of rural businesses throughout Utah!