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 12/24/2018Amended by Utah State Bulletin Number 2021-14, effective 7/12/2021Amended by Utah State Bulletin Number 2022-08, effective 4/8/2022Amended by Utah State Bulletin Number 2022-22, effective 10/27/2022Amended by Utah State Bulletin Number 2024-03, effective 1/25/2024