Section R357-15-5 - Application Review and Authorization Process for an Enterprise Zone Tax Credit(1) The office shall review submitted applications within a reasonable amount of time and approve or deny the application as follows: (a) the office shall review tax credits claimed and documentation provided; and(b) the office may request additional documentation or information if the office determines that further verification is required. Failure to comply with a request for additional documentation may result in a denial of the application.(2) The office will issue tax credit certificates for tax credits for which an applicant has applied, qualified and been approved by the office. This office may issue a partial approval if only parts of the application are determined to qualify.(3) The office must provide written notice that includes its reasoning when denying any or a portion of a tax credit application.(4) If approved in whole or in part, the office shall provide any necessary documents and instructions, approved by the Utah Tax Commission, for claiming the tax credit.(5)(a) When a business entity is seeking to receive a tax credit for the purchase of a qualified business use vehicle, in conformity with Subsection 63N-2-213(7)(f), the office may not grant a tax credit for the trade in value of a qualified business use vehicle that the business entity traded into the purchase of the vehicle for which the tax credit is being sought;(b) The amount claimed toward investment in a qualified business use vehicle or a motor vehicle described in Subsection R357-15-4(3)(b)(v) is determined as acquisition cost, less any trade in value in accordance with Subsection R357-15-5(5), multiplied by the business use percentage.(c) a qualified business use vehicle with partial business use and personal use will be treated as 100% business use.(6) The trade in value in a purchase may be claimed toward a state tax credit for private capital investment that is qualifying investment in plant, equipment, or other depreciable property when, in the purchase that qualifies as investment by the business entity, there was traded in:(a) plant, equipment, or other depreciable property that qualifies for depreciation on IRS Form 4562 and is not a qualified business use vehicle and if not previously awarded;(b) a qualified business use vehicle that was traded in by an individual who is an owner or officer of the applying business entity; or(c) a building, property, or other real estate investment that qualifies for depreciation on IRS Form 4562.(7) The office may deny claims of investment for software purchases that are cloud services or software as a service.(8) The office may deny claims for investment purchased before the three previous taxable years.(9) The office may deny claims for investments purchased from a business entity with the same ownership.(10) The office may deny claims if the only connection to an enterprise zone for a business entity is a P.O. Box.(11) The office may deny claims for investment that was transferred from personal use to business use unless the original investment and personal use occurred within the same taxable year the asset was placed into service by the applying business entity.(12) The office shall deny claims if a business entity:(a) produces revenue of 51% or more in retail trade;(b) is a residential rental property business; or(c) is a public utilities business.Utah Admin. Code R357-15-5
Adopted by Utah State Bulletin Number 2016-16, effective 7/22/2016Amended by Utah State Bulletin Number 2019-2, effective 12/24/2018Amended by Utah State Bulletin Number 2019-17, effective 8/12/2019Amended by Utah State Bulletin Number 2021-23, effective 11/22/2021Amended by Utah State Bulletin Number 2024-16, effective 8/7/2024