Utah Admin. Code 357-3-105

Current through Bulletin 2024-23, December 1, 2024

Section R357-3-105 - Factors to Be Considered in Authorizing an Economic Development Tax Credit Award

(1) The amount and duration of a tax credit award shall be determined on a case-by-case basis. The factors that the office may consider include:

(a) whether the company is projecting positive long-term growth;

(b) whether the company is part of a targeted industry;

(c) the overall benefit to the state from the new commercial project;

(d) the uniqueness of the economic opportunity;

(e) the economic environment at the time of the new commercial project or company applies including;

(i) the job leakage to other counties;

(ii) the relative value of a job; and

(iii) the underemployment rate;

(f) the location of the new commercial project;

(g) the quality of financing the company has received;

(h) comparison to previously incented projects in size, scope, and industry;

(i) service hours completed per high paying job under a prior agreement with the office; and

(j) other factors as reasonably determined by the administrator.

(2) The factors for an award higher than 30% of new state revenues for a project located in a county of the third-class, or a municipality with a population of 10,000 or less located within a county of the second class and that is experiencing economic hardship are:

(a) factors in Subsection R357-3-105(1);

(b) evidence of significant financial support of the local community for the project;

(c)

(i) capital expenditures of at least $500,000,000 for the new commercial project;

(ii) the new capital project is in targeted industry as defined by the office; or

(iii) local taxing entities are offering a tax increment agreement of at least 75% and 25 years of property tax rebates;

(d)

(i) the new capital project creates at least 2,000 new high-wage jobs; and

(ii) the new capital project is in targeted industry as defined by the office;

(iii) the average wages for the new high paying jobs are at least 300% of the average county wage; or

(iv) local taxing entities are offering a tax increment deal over 75% and 25 years for property tax rebates;

(3) A new commercial project within the leisure and hospitality industry sector, located in a county of the fifth or sixth class may receive an award up to 50% of new state revenues over 20 years if the project:

(a) has capital expenditure of at least $10,000,000;

(b) creates a significant number of new high paying jobs;

(c) is of strategic importance to the state, county and city;

(d) is adjacent to a unique, high visitation tourist area; and

(e) location would otherwise be underserved in leisure and hospitality without being provided an incentive.

(4) If the Board has not approved a project within six months of submission the company must submit an updated application.

(5) The Executive Director after consultation with the GO Utah Board may:

(a) approve or deny an application; and

(b) determine terms and conditions of an approved application.

Utah Admin. Code R357-3-105

Adopted by Utah State Bulletin Number 2019-2, effective 12/24/2018

Amended by Utah State Bulletin Number 2021-14, effective 7/12/2021

Amended by Utah State Bulletin Number 2022-08, effective 4/8/2022

Amended by Utah State Bulletin Number 2022-22, effective 10/27/2022

Amended by Utah State Bulletin Number 2024-03, effective 1/25/2024