Section R357-3-107 - Modification of Agreement(1) GOEO may change, or a business entity may request to change, the terms of a tax credit offer or contract as set forth in this section.(2) Under extraordinary circumstances, a business entity may request substantive modifications to the terms of the tax credit agreement if:(a) there is a substantial change to new commercial project plan; and(b) changing the terms of the tax credit would benefit the state.(3) GOEO and the business entity may make nonsubstantive modifications to the tax credit contract to: (a) correct clerical errors made in the initial application, the offer, the contract, or the tax credit;(b) make technical changes that do not alter the tax incentive amount or violate any state or federal law; or(c) adjust the timeline: (i) less than 24 months; or(ii) up to 48 months for unforeseen circumstances, as determined by the office.(4) Substantive modifications require Board consultation before the Executive Director's approval or denial.(5) GOEO shall document and maintain requests and modifications.(6) When a business entity acquires another company with employees in Utah or if another Utah company acquires a business entity and the office can distinguish between both entities' employees and separate how much new state revenue is generated from the acquiree and acquirer, no changes to the baseline employees or new state revenues will be made.(7) When a business entity acquires another company with employees in Utah or if another Utah company acquires a business entity and the office cannot separate the acquiree's and acquirer's employees or new state revenue the office shall: (a) increase the baseline to the lesser of the acquiree's number of full-time positions as determined by the office: (i) on the Board approval date; or (ii) at the time of acquisition; and(b) increase baseline state revenue to the same time period as chosen for baseline jobs.(8) A company may request to exclude the 2020 EDTIF period. If a request is granted the contract must be amended that: (a) establishes a one-year gap where no incentive is awarded;(b) delays annual job projections by one year moving forward; and(c) extends the contract by one year.(9) The office may deny a request to exclude the 2020 EDTIF period for any reason.Utah Admin. Code R357-3-107
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 2023-04, effective 2/3/2023Amended by Utah State Bulletin Number 2024-03, effective 1/25/2024