State of Utah Governor's Office of Economic Development

Enterprise Zone Tax Credit - Employee 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 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 Employee Tax Credit only. For the Capital Investment 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.
The Employee Tax Credit 
  1. A tax credit of $750 may be claimed by a business entity for each new full-time employee position created within the enterprise zone;

  2. An additional $500 tax credit may be claimed if the new full-time employee position created within the enterprise zone pays at least 125% of the county average monthly nonagricultural payroll wage;

  3. An additional tax credit of $750 may be claimed if the new full-time employee position created within the enterprise zone is in a business entity that adds value to agricultural commodities through manufacturing or processing;

  4. An additional tax credit of $200 may be claimed 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 if the employer pays at least 50% of the premium cost for the year for which the credit is claimed.

Instructions:

Before filing an Employee Tax Credit application you will need the following documents: 

Download Employee Credit Template 

Employee company health care policy that outlines premium price and what is covered by the company

Signed letter of certification


Employee documentation includes, but is not limited to: 

Employee lists including employee:

  •  Name
  •  Title
  •  Department
  •  Hours Worked - Note: DO NOT annualize employee hours
  •  Hourly rate
  •  Gross salary
  •  Gross benefits
  •  Hire date
  •  Termination date as well as additional information necessary to validate additional employment-related  tax credits claimed

Tax Credit Process:
  1. To complete the application:
    • Carefully read each question and provide accurate answers.
    • Submit the required documentation to support your submission
    • 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 incremental job creation. 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.
Statutory Limitations for Employee Credit

A business entity claiming a tax credit for this program may claim the tax credit for no more than 30 full-time employee positions in a taxable year.

A business entity that received a tax credit for one or more new full-time employee positions in a prior taxable year may claim a tax credit for a new full-time employee position in a subsequent taxable year if:
  • The business entity has created a new full-time position within the enterprise zone; and
  • The total number of employee positions at the business entity at any point during the tax year for which the tax credit is being claimed is greater than the highest number of employee positions that existed at the business entity in the previous taxable year
Please contact goedcompliance@utah.gov, with any questions or concerns regarding the Enterprise Zone program. 

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
























Page 3 - General Information

Input your operating address and information below. Only businesses that have an operating address within an Enterprise Zone will qualify for an Enterprise Zone Tax Credit. If the only connection to an Enterprise Zone is a P.O. Box or the provided business address is not within 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 last name.
Contact Information
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 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 physical address of the business operating address within the Enterprise Zone Area.

Page 4 -  Employee Information

Please input information regarding your employee count. In order for a new position to qualify for the Enterprise Zone tax credit the position must meet the following requirements:
a. Each new position must be filled by an employee working a minimum of 30 hours per week and
b. Each new position must be new and exceed the highest number of employee positions that existed at the business entity in the previous taxable year.
Employee Information - All Questions are Required

3. Total FTE Employees for each of the last three years (as of the last month of each tax year)








Please enter the number of full time employees (30+ hours a week) the entity retained as of the end of each quarter of the tax year and prior years tax return. Applicants may choose to demonstrate positions at any point during the tax year against the highest positions in the previous tax year.

Page 5 -  Enterprise Zone Employment Tax Credits 

All new full-time positions over the baseline may be eligible for the Enterprise Zone Employment tax credit.
1. A tax credit of $750 may be claimed by a business entity for each new full-time employee position created within the enterprise zone during the last tax year.

Please input the new full-time positions within an Enterprise Zone.
2. An additional $500 tax credit may be claimed if the new full-time employee position created within the enterprise zone pays at least 125% of the county average monthly nonagricultural payroll wage.

County average monthly wage is defined by legislation as the following: a. the county averge monthly nonagricultural payroll wage for the respective industry as determined by the Department of Workforce Services; or b. if the county average monthly nonagricultural payroll wage is not available for the respective industry, the total average monthly nonagricultural payroll wage in the respective county where the enterprise zone is located.
3. An additional tax credit of $750 may be claimed if the new full-time employee position created within the enterprise zone is in a business entity that adds value to agricultural commodities through manufacturing or processing.

4. An additional tax credit of $200 may be claimed 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 program if the employer pays at least 50% of the premium cost for the year for which the credit is claimed.


Page 6 - Submission and Compliance 




Please click the Submit button below to submit this application.

Our staff will review your application and contact you soon. If approved, a letter and tax credit certificate will be issued to file with your taxes.
If you would like to confirm receipt of your application, please email goedcompliance@utah.gov within a week of submission. Please be aware that it takes our office up to 30 days to process a submitted application.