EDTIF Tax Credit
The EDTIF tax credit is a post-performance, refundable tax credit rebate for up to 30% of new state revenues (sales, corporate, and withholding taxes paid to the state) over the life of the project (typically 5-10 years). It is available to companies seeking relocation and expansion of operations to the State of Utah who are looking to add at least 50 jobs with annual wages of at least 110% of county average annual wages, have demonstrated company stability and profitability, and have demonstrated competition with other locations. Companies must also obtain commitment from the local government to provide local incentives.
The Industrial Assistance Fund is a post-performance grant for the creation of high-paying jobs in Utah. Companies are required to obtain commitment from local government to provide local incentives, create new high-paying jobs in the state (at least 50 jobs and at least 110% of county average annual wages), demonstrate company stability and profitability, and demonstrate competition with other locations.
The Rural Fast Track (RFT) Program is a post-performance grant available to small companies in rural Utah. The program provides an ef cient way for existing small Utah companies to receive incentives for creating high paying jobs in the rural areas of the state and to further promote business and economic development.
Custom Fit Training
Custom Fit Training is a partnership between the Utah Colleges of Applied Technology and other select sister institutions across the state, and the local business community. Its mission is to provide customized employee training to businesses at an affordable cost. The Utah State Legislature appropriates funds each year as an investment in custom t training.
Tax Increment Financing
Cities and counties may award incentives to companies locating in Economic Development Areas (EDA), Urban Renewal Areas (URA) or Community Development Areas (CDA). The city or county determines EDA/URA/CDA areas on a local level. Incentive dollars are generated through the creation of new “property tax increment” that a development will generate. When a company constructs a new building, for example, its property tax increment is the result of the assessed value of the building multiplied by the property tax rate. In an EDA or URA, all public entities entitled to property tax agree to rebate their increment back to the new development for a specified period of time to incent the development to occur. In a CDA, public entities must opt-in on a property tax rebate if they see fit. Incentives are awarded as a percentage of the tax increment created by the development.
- EDAs are intended for development on land sites that will result in the value-added creation of jobs. There is no requirement for blight in an EDA and the property can be vacant or partially improved land.
- CDAs are intended to undertake any economic or community development purpose of the city, including job growth or retail sales.
Revolving Loan Funds
Numerous RLF programs have been established in the state to promote economic development within Utah. RLFs are a gap nancing measure used primarily for development and expansion of small businesses. Communities in Utah offer RLFs to provide access to a exible source of capital to be used in combination with more conventional sources. Often RLFs act as a bridge between the amount a borrower can obtain through private market funding and the amount needed to start or sustain a business. RLFs issue loans at competitive market rates. Durations and loan amounts vary according to the use of funds.