State of Utah Governor's Office of Economic Development

Enterprise Zone Area Designation Application

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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 Tax Credit.


JOB CREATION TAX CREDIT

1.      A $750 tax credit for each new full time position created within the Enterprise Zone and filled for at least six months.

2.      An 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 county.

3.      An additional $750 tax credit if the new position is in a business which adds value to agricultural commodities through manufacturing or processing.

4.      An 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 CREDIT

1.      A 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.

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.

 

ADDITIONAL INFORMATION

·         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 program.

·         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 Tax Credits.


Please visit locate.utah.gov to see eligible Enterprise Zones


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: jdixon@utah.gov.



Thank you for participating in the Enterprise Zone Tax Credit and for supporting the growth of rural businesses throughout Utah!




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GENERAL INFORMATION








If your county is not on this list it is not eligible for designation as an Enterprise Zone.




EVIDENCE OF NEED FOR DEVELOPMENT


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DEVELOPMENT PLAN


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LOCAL CONTRIBUTIONS
According to Section 63N-2-205 of the Enterprise Zone statute, an area may be designated as an Enterprise Zone only if the county applicant or the municipal applicant agrees to make a qualifying local contribution. Qualifying contributions may include, but are not limited to those listed below.  Please choose all local contributions the county or municipal applicant will offer.  If there will be other contributions please select Other Local Contributions and list them in the field provided.


SUPPORTING DOCUMENTATION
The applicant must submit the following documentation to complete the application:
Required Documentation