Article
Increase your business' cash flow with Utah’s top tax credits and incentives
Aug. 26, 2024 · Authored by Gina Kucera, Gabriel Sermeno, Evan Krueger
To foster economic growth, the state of Utah administers several tax credit and incentive programs that can apply to both local businesses and out-of-state expansions.
Below is an overview of the most widely used of these programs.
Economic development tax increment financing (EDTIF)
EDTIF is used to revitalize specific areas in the state. It captures the increased property taxes generated by new development and reinvests those funds back into the area for further improvements like infrastructure or incentives for businesses.
How much money is available?
The potential benefit to a successful applicant is 30% of the new state taxes created by the investment or expansion. If the project is in a rural county, the benefit can be up to 50% of the new state taxes created by the investment.
The credit is generally structured as a post-performance award made available for the awardee to use over a period of 5–10 years, depending on the specific agreement terms reached between the Governor’s Office of Economic Opportunity and the awardee.
How does a company qualify?
The EDTIF program focuses on incentivizing investment and expansion for companies in these industries:
- Advanced manufacturing
- Aerospace and defense
The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.