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 business entities located or expanding within a designated Enterprise Zone. Click the link to confirm your business entity falls within an Enterprise Zone for the applicable tax year. You may also confirm eligibility with your county, municipal or tribal economic development office, as well as GOED. The purpose of the tax credit is to encourage investment and job creation by rural Utah businesses.
 
This application covers the Private Capital Investment Tax Credit only. For the Employee Tax Credit Application please submit an application here. Business entities within a designated Enterprise Zone Area are eligible to submit both applications.

DO NOT claim any Enterprise Zone 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:

Private Capital Investment Tax Credits:
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, including that the building has had or contained no occupants, tenants, furniture, or personal property in the time period immediately before the rehabilitation.; and/or
2.      An annual investment tax credit of 5% of the first $750,000 in 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 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 purchase documentation for all items being claimed for the private capital investment tax credit. For items equal to or greater than $10,000, we require both purchase and payment documentation. Please attach all documentation that substantiates the qualifying investments. The compliance team may request additional documentation if the documentation provided is deemed insufficient. 
 

Tax Credit Process:
1. To complete the application: 
    A. Carefully read each question and provide accurate answers.
    B. Submit the required documentation to support your submission. 
    C. Fill out, sign, and submit a letter of certification which has been approved by the state as described in 63N-2-213 (2)(a).
2. Eligibility will be confirmed and reviewed by the GOED Compliance Team.
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.


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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 entities that have an operating address within an Enterprise Zone 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 including that the building has had or contained no occupants, tenants, furniture, or personal property in the time period immediately before the rehabilitation. 

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 5% of the first $750,000 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 and 63N-2-218 (7)(f).  
 
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 Required Documentation
Investment is determined by each purchase document. For example, an invoice with several items totaling less than $10,000 is acceptable as the only backup documentation provided. An invoice with several items equal to greater than $10,000 requires purchase and payment documentation.

For the purchase of an investment below $10,000
For each investment being claimed, purchase documentation is required.

For the purchase of an investment equal to or greater than $10,000
Both purchase and payment documentation is required.

As per Rule R357-15-2 (7) "Purchase documentation" means
(a) bill of sale;
(b) contract of sale;
(c) receipt, invoice:
(d) settlement statement or disclosure document issued from a third party source, including a title company or a bank, for property or other real estate investments; or
(e) other documentation with identifies the buyer, seller, purchase price, item(s) purchased, and the date of purchase.

As per Rule R357-15-2 (6) "Payment documentation" means
(a) bank statement;
(b) cleared check;
(c) signed and executed financing agreement;
(d) signed statement from the seller confirming the payer, payee, date paid, and amount paid for cash payments; or
(e) settlement statement or disclosure document issued from a third party source, including a title company or bank, for property or other real estate investments.
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.