State of Utah Governor's Office of Economic Development

Enterprise Zone Tax Credit - Capital Investment Credit

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PLEASE NOTE THAT ALL APPLICATIONS ARE DUE 4 WEEKS PRIOR TO ANTICIPATED TAX FILING

The Enterprise Zone Tax Credit program is available to businesses located or expanding within a designated Enterprise Zone Area. Click the link and confirm. You may also confirm eligibility with your county or tribal economic development office. The purpose of the tax credit is to encourage investment and job creation by rural Utah businesses.
 
This application covers the Capital Investment Tax Credit only. For the Employee Tax Credit Application please submit an application here. Businesses in the designated Enterprise Zone Area are eligible to submit both applications.

DO NOT claim any Enterprise tax credits on returns until applicant receives the approval letter & certificate from GOED. A submission does not mean automatic approval. Submitting a tax return to the Tax Commission with the Enterprise Zone tax credit prior to GOED approval may lead to an audit by the Tax Commission.
ENTERPRISE ZONE TAX CREDITS:

Investment Tax Credit
1.      A tax credit of 25% of the first $200,000 spent on rehabilitating a building in the enterprise zone that has been vacant for two years or more; and/or
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.
Instructions

Before filing a Building Rehabilitation Tax Credit application you will need the following documents: 
•      Current occupancy permit or certificate
•      Notarized vacancy letter
•      Documents showing current owner such as deed or mortgage documents
•      Purchase and payment documentation demonstrating investment and all rehabilitation expenses being claimed
•      Signed letter of certification

Before filing a Qualifying Investment Tax Credit application you will need the following documents:
•      Purchase and payment documentation demonstrating qualifying investment
•      Signed letter of certification

Required Documentation
We require one piece of primary documentation (proof of purchase i.e. invoice, bill of sale, contract of sale, receipt, property tax notice) and for purchases over $10,000 we require a piece of secondary documentation (proof of payment i.e. bank statement, cleared check, signed financing agreement). Please attach all documentation that substantiates qualifying investments. The compliance team may request additional documentation if documentation provided is deemed insufficient. 
 

Tax Credit Process:
1. Fill out the application by: 
    A. Carefully reading each question and provide accurate answers.
    B. Submitting the required documentation to support your submission 
    C. Signing and submitting a letter of certification which has been approved by the state as described in 63N-2-243. This is done by printing, completing, and signing the form, which is then submitted with the required documentation.
2. Eligibility will be confirmed and reviewed.
3. Dependent on eligibility, 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.
 
  
Please contact goedcompliance@utah.gov, with any questions or concerns regarding the Enterprise Zone program. Please contact Jaron Janson, jjanson@utah.gov, for technical assistance with this portal.


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Please click, "Next Page" to continue.

Entity Eligibility Information
Carefully read each question and provide accurate answers.




















Page 3 - General Information

Input your business address and information below. Only business that have an operating address within an Enterprise Zone Area will qualify for Enterprise Zone Tax Credits. If the only connection to an Enterprise Zone is a P.O. Box or the provided business address is not in an Enterprise Zone, the application will be rejected.


Company Contact Information - All Questions are Required
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.
Business entity owner's first name.
Business entity owner's first name.

First name of the person completing this application on behalf of the applicant, such as a CPA.

Last name of the person completing this application on behalf of the applicant, such as a CPA.
Please enter the email address where you would like to receive correspondence and the digital letter and/or certificate.
Company Specific Data All Questions are Required
 This code will determine if you are eligible for an Enterprise Zone tax credit in this application. A business entity primarily engaged in retail trade or a public utilities business may not claim an Enterprise Zone tax credit as per 63N-2-213 (10).
If you are claiming this credit on your individual income tax return please use your Social Security number here. 

Value-added Agriculture: a change in the physical state or form of a product in a manner that enhances its value, thus expanding the customer base of the product. Examples include milling wheat into flour or making strawberries into jam.


Enterprise Zone Address

Please input your Enterprise Zone business address below. Addresses not located within an Enterprise Zone Area will be ineligible. Go here to verify that your operating address is in an Enterprise Zone. Please note that businesses located in Cache, Davis, Salt Lake, Tooele, Utah, Washington and Weber Counties are not eligible for a tax credit. 

 

The Enterprise Zone Physical Address fields below are for the operating address of the business entity within the Enterprise Zone Area.

Page 4 - Private Capital Investment

Please complete this section to be eligible for a tax credit of 25% of the first $200,000 spent on rehabilitating a building in the enterprise zone that has been vacant for two years or more. 

If you are not submitting for a building rehabilitation credit, please skip this section.
Rehabilitated Building Address

Please input the exact rehabilitated building address. Addresses not located within an Enterprise Zone Area will be ineligible for the Enterprise Zone tax credit. Go here to verify that your operating address is in an Enterprise Zone.

Rehabilitated Building Investment Details
The dollar amount your company has invested in the building.


The expenditure input in Question 9 should be detailed in the purchase and payment documentation attached here.

The expenditure input in Question 9 should be detailed in the purchase and payment documentation attached here.


Page 5 - Private Capital Investment

Qualified private capital investment made during a tax period may qualify for a 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 within the enterprise zone area for that tax period as described in Administrative Rule R357-15-2.  
 
If the amount of a tax credit under this section exceeds a business entity's tax liability 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 the next three taxable years.
 
If you are not submitting for a qualifying investment credit, please skip this section.

Property Investment Details

Required Documentation
We require one piece of purchase documentation for each claimed purchase and for qualifying investments of $10,000 and over we require a piece of payment documentation. Please attach all documentation that substantiates qualifying investments.

If the purchase or payment for an item falls outside of the applicant's tax year, please list the date the item was placed into service.

Provide the dollar amount of property investment eligible to be claimed.


The amount in Question 1 should be demonstrated by the attached purchase and payment documentation.

The amount in Question 1 should be demonstrated by the attached purchase and payment documentation.

Page 6 - Submission and Compliance




Our staff will review your application and contact you soon. If approved, a form will be issued to file with your taxes.

Please click the Submit button below to submit this application. 
If you would like to confirm receipt of your application, please email goedcompliance@utah.gov within a week of submission.