Issuu

TA B L E O F

CONTENTS 4 12 44 54 66

About Us

Focus Areas

Budget

Tax Credits

Commissions, Boards & Committees

ABOUT US Introduction & About Us

Executive Director’s Message

Vision, Mission & Teams

Introduction The Utah Governor’s Office of Economic Opportunity (GOEO) prepares an annual report for the Utah Legislature and the public. The report — published annually on October 1 for the previous fiscal year — details the office’s programs, initiatives, and events. The 2025 Annual Report represents the period from July 2024 to June 2025, known as fiscal year (FY) 2025.

About Us Under Gov. Spencer J. Cox’s direction, the Governor’s Office of Economic Opportunity provides resources and support for business creation, growth, and recruitment, while also promoting tourism and film production in Utah. Our office cultivates economic prosperity for all Utahns, leveraging federal, state, and private-sector resources to implement programs in areas with the highest potential for economic development and opportunities for residents statewide.

Executive Director’s Message

Utah’s economy is dynamic, resilient, and forward-looking — and that’s no coincidence. At the Governor’s Office of Economic Opportunity, we foster an environment where innovation thrives, businesses grow, and families across the state enjoy an unmatched quality of life. We’re proud to play a central role in advancing economic opportunity for all Utahns. Whether facilitating capital for local entrepreneurs or supporting a Fortune 500 company expanding in Utah, GOEO catalyzes growth. Our work touches every corner of the state — from rural revitalization to global trade, workforce development, and targeted industry support. Over the past year, Utah has made measurable progress toward securing its economic future. Respected national publications continue to recognize the state’s economic performance. U.S. News & World Report ranked Utah the best state for the third consecutive year, and Rich States, Poor States named Utah No. 1 for economic outlook for the 18th straight year. Additionally, WalletHub ranked Utah as the most independent state, and CNBC reported it as the most affordable state to start a business. As the world evolves technologically, Utah continues to lead through innovation and adaptability. In FY 2025, GOEO supported the creation of 3,841 new jobs and facilitated $6.68 billion in private capital investment. The office played a central role in initiatives that expanded access to opportunity, strengthened targeted industries, and fueled statewide growth. This year brought significant developments across GOEO programs. We are maximizing expansion of the Utah Small Business Credit Initiative (USBCI) and the Startup State Initiative to better serve entrepreneurs, while contributing to key efforts in permitting reform, capital access, and innovation. These initiatives reflect our commitment to fostering long-term, inclusive growth statewide. As the new executive director of GOEO, I’m honored to lead this work alongside an exceptional team. I step into this role with respect for what’s been accomplished and optimism for the road ahead. Our mission remains clear: to foster lasting prosperity for all Utahns. Utah’s economy is strong — and our future is even stronger. Sincerely,

Jefferson Moss Utah Governor’s Office of Economic Opportunity Executive Director 801-538-8794 jrmoss@utah.gov

Vision, Missions & Teams Teams and Initiatives BUSINESS SERVICES • APEX Accelerator • Marketing & Communications • Startup State Initiative • Utah Center for Global Talent • Utah Innovation Center • Utah Small Business Credit Initiative ECONOMIC GROWTH • Business Recruitment & Expansion • Center for Rural Development & Community Outreach • Community Grants • International Trade & Diplomacy • Targeted Industries • Utah Broadband Center

OPERATIONS • Business Intelligence • Compliance • Finance & Contracts • Internal Auditing • Office Management STRATEGIC INITIATIVES • Unified Economic Opportunity Commission • UPSTART Program • Utah Office of Regulatory Relief UTAH OFFICE OF TOURISM & FILM • Community & Destination • Operations & Research • Customer & Team Success • Global Markets • Marketing & Communications • Utah Film Commission

CONTACT INFO For information on programs and initiatives, team headshots, and staff contact details, visit econ-opp.fyi/directory.

VISION

VALUES

Develop and sustain the world’s greatest economy and quality of life.

• Collaborative partnerships

MISSION

• Community stewardship

Cultivate economic prosperity for all Utahns.

• Superb customer experience

• Exceptional communication • Working at the speed of business

• World-class research and data

FOCUS AREAS We Support Utah Entrepreneurs & Small Businesses

Rural Utah Support

Utah Innovation Center

APEX Accelerator (Rural Report)

Utah Broadband Center

Housing and Transit Reinvestment Zone Act & First Home Investment Zone Act

Business Recruitment & Expansion

International Trade & Diplomacy

Targeted Industries

Tourism

Film Production

Utah’s Office of Regulatory Relief

UPSTART Program

Utah Small Business Credit Initiative Fund — Rev. 2.0

Utah Center for Global Talent

Utah Redevelopment Agency Portal

Contract Compliance

We Support Utah Entrepreneurs & Small Businesses GOEO’s business services team collaborates with a robust network of partners to provide comprehensive resources and support for Utah’s small businesses. Among its many partnerships, key partners include: • Local chambers of commerce (e.g., Salt Lake, Utah Valley, Hispanic) • Suazo Business Center • The Center for Economic Opportunity & Belonging • U.S. Treasury • U.S. Small Business Administration • Utah Small Business Development Center • Women’s Business Center of Utah These partnerships enable us to offer vital resources such as consulting, training, capital, grants, and other essential tools to foster the success of Utah businesses.

STATE-SPONSORED/GOEO PROGRAMS AND SERVICES: BUSINESS RECRUITMENT & EXPANSION The business recruitment and expansion team manages GOEO’s corporate recruitment incentives, attracting local and out-of-state companies to expand or relocate within Utah. This team is crucial in supporting regional economic development across the state. GOEO empowers local communities by: • Promoting local strategies around the development of targeted industries on a national platform • Fostering collaboration among state agencies, local governments, and privatesector partners • Providing training and tools to develop a strong ability to respond to company or site selectors’ request for information

CENTER FOR RURAL DEVELOPMENT GOEO’s Center for Rural Development (CRD) works with Utah’s rural counties, communities, and businesses, providing economic development resources that lead to prosperity. These resources include tax credit incentives, grants, and skilled guidance that act as a force multiplier, accelerating economic projects in Utah’s 24 rural counties.

INTERNATIONAL TRADE & DIPLOMACY The International Trade & Diplomacy team manages diplomatic engagements within Utah and internationally. In collaboration with local partners, including World Trade Center Utah, the team actively promotes Utah’s business community and attracts foreign direct investment and trade.

STARTUP STATE INITIATIVE The Startup State Initiative creates opportunities for advancement by celebrating, inspiring, and empowering Utah entrepreneurs. It aims to champion the state as the Startup Capital of the World by providing consistent leadership, unifying key business resources on one platform, and amplifying support organizations. With the end goal of fostering new business formations, it supports entrepreneurs throughout their startup journeys. Learn more at startup.utah.gov.

UTAH APEX ACCELERATOR The Utah APEX Accelerator program offers free consulting services to help Utah businesses successfully identify and secure government contracts. Our expertise prepares businesses to compete in federal, state, and local marketplaces.

FY 2025, the APEX Accelerator achieved significant milestones: • Completed 2,870 hours of consulting services • Consulted 590 new clients • Helped Utah companies win $1,070,563,209 in federal, state, and local contract awards • Sponsored or participated in 131 inperson and virtual events, including the APEX Accelerator Symposium with 330 attendees and the Acceler8 Wasatch conference with 183 attendees, cohosted by APEX Accelerator

UTAH BROADBAND CENTER The Utah Broadband Center helps expand high-speed internet for Utah businesses and households. It collaborates with broadband providers, policymakers, consumers, communities, and other partners to support statewide broadband deployment, improve efficiencies, and expand access and usage across Utah. (Note: The Utah Broadband Center moved to the Utah Department of Transportation, effective July 1, 2025.)

UTAH CENTER FOR GLOBAL TALENT The Utah Center for Global Talent assists Utah businesses in identifying pathways for recruiting and retaining international talent. The center collaborates with state and federal government partners on immigration policies and programs. Additionally, it oversees a statewide task force comprising local officials, business sector representatives, and community stakeholders to advise on promoting economic opportunities for immigrants and New Americans in Utah. 15

UTAH FILM COMMISSION The Utah Film Commission supports Utah businesses engaged in film, television, and commercial production — from catering to equipment rental — by promoting and incentivizing film production across the state.

UTAH INNOVATION CENTER The Utah Innovation Center supports several of the state’s targeted industries by assisting Utah innovators in securing federal research and development funding through the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. It catalyzes technology innovation in Utah, helping small businesses successfully compete for non-dilutive research and development funding. (Note: The Utah Innovation Center moved to the Utah System of Higher Education’s Nucleus Institute, effective July 1, 2025.) 16

UTAH OFFICE OF REGULATORY RELIEF The Utah Office of Regulatory Relief enables organizations, including businesses and nonprofits, to temporarily experiment with new products, production methods, or services, allowing stakeholders and entrepreneurs to assess their effectiveness with clients. This office also provides policymakers with valuable insights regarding the appropriate scope and scale of regulation for these innovations.

UTAH OFFICE OF TOURISM The Utah Office of Tourism supports Utah entrepreneurs through strategic marketing, stewardship, and development. The office crafts messaging that promotes statewide visitation, strengthens Utah’s economy, and directly supports local businesses. By encour-

aging responsible exploration and fostering collaboration with local communities, the office enhances economic opportunities for both residents and visitors.

UTAH SMALL BUSINESS CREDIT INITIATIVE The Utah Small Business Credit Initiative (USBCI) is a federal loan program, part of the U.S. Treasury’s State Small Business Credit Initiative. Funded with $69 million, USBCI aims to expand access to capital for Utah small businesses. These provisions and resources enable underserved small businesses and rural community entrepreneurs to access essential capital and other resources crucial for business growth.

Rural Utah Support The Center for Rural Development (CRD) works with Utah’s rural counties, communities, and businesses, providing economic development resources that lead to prosperity. These resources include tax credit incentives, grants, and skilled guidance that act as a force multiplier, accelerating economic projects in Utah’s 24 rural counties. GOEO expanded its CRD service model in 2023. Accomplishments during the first two years of this update included building strategic relationships and gaining first-hand knowledge of rural county assets and economic needs. FY 2025 had a targeted focus, launching The Rural Economic Blueprint Program, a strategic economic development program for rural communities, applying grant programs to the projects of highest priority, dramatically increasing the utilization of the GOEO incentive program, and scheduling outreach team activities resulting in maximum return on time and investments. CRD programs that served rural Utah in FY 2025 include:

RURAL OPPORTUNITY PROGRAM U.C.A 63N-4-802 The Rural Opportunity Program includes four grant/loan funding opportunities that benefit rural Utah: the Rural County Grant (RCG), the Rural Communities Opportunity Grant (RCOG), the Rural Employment Development Incentive Grant (REDI), and the Rural Revolving Loan Fund. Over $27 million was awarded from these four funding sources in FY 2025.

RURAL COUNTY GRANT The RCG program awards $200,000 in each of Utah’s 24 rural counties. With the advice of its County Economic Opportunity Advisory Boards, each county plans and implements projects and activities that enhance business and economic development. These projects and activities include business recruitment, development, and expansion; workforce training and development; and infrastructure, industrial building development, and capital facilities improvements for business development. In FY 2025, $4.8 million was distributed to the rural counties.

CHALLENGES & ACHIEVEMENTS In its fourth year of administering the Rural County Grant, GOEO saw more engagement and activity from each county’s economic opportunity advisory board due to the increased interaction with with the five regional outreach managers. These boards strategically contribute more to the economic development decisions made by county commissions. A key challenge is that some counties attempt to use the funding for community projects that are not directly supported by this economic development grant funding. As a result, the community grants team, in partnership with the regional outreach managers, spent several weeks retraining the community opportunity boards and county commissions on their responsibilities and proper use of funds. OUTCOMES Rural counties have used RCG funds for a variety of economic development projects and activities, such as: • Subgrants to businesses for capital investments • Event amenities and venue improvements to support the visitor economy • Economic development infrastructure improvements for downtown place-making • Buy-local sales promotions • Workforce development training in practical business skills and customer service • Business leadership and training academies • Workforce development to obtain licensures and certifications • Market research and feasibility studies as related to economic development projects

RURAL COMMUNITIES OPPORTUNITY GRANT The RCOG is a competitive funding program that expands opportunities to rural communities — not only the rural counties but also the cities and towns within them. Rural Associations of Governments can also apply for RCOG for regional projects. Rural communities may receive awards up to $600,000. In FY 2025, over $5.4 million was awarded to 13 rural communities. This year, all awards were for economic development infrastructure, industrial building development, and capital facilities improvements for business development. CHALLENGES & ACHIEVEMENTS The rural outreach team worked diligently to increase the quality of RCOG project applications, and focused on aligning projects to short-term and long-term economic development plans. Rural Economic Opportunity Advisory Boards were also trained on the RCOG grant guidelines. Much of CRD’s time was spent retraining County Economic Opportunity Advisory Boards, commissions, and councils on what types of projects qualify for RCOG awards and their roles in preparing for, reporting on, and being accountable for grant funding. As a result, the team successfully conducted training for representatives from each of the 24 rural counties across the state in FY 2025. OUTCOMES Examples of economic development projects and activities by rural communities using RCOG funds are: • Rebuilding a fire-damaged sawmill and restoring jobs • New lift station to service existing and 19

• • • • • •

future commercial developments Public infrastructure for downtown business development Completion of roadway project to provide upgraded access to new industrial park Industrial park development to attract diverse business opportunities Upgraded tourist destination amenities Regional airport commercial hangar development Development of a new commercial area for retail expansion

RURAL EMPLOYMENT DEVELOPMENT INCENTIVE GRANT U.C.A. 63N-4-403 The REDI grant offers direct support to businesses. Growing companies in rural Utah that create and retain new, high-paying jobs can apply for $5,000 to $6,000 per position, provided they maintain the job for at least 12 months. This program defines high-paying jobs as paying 100% of the county’s annual wage. CHALLENGES & ACHIEVEMENTS One challenge REDI participants faced during FY 2025 was complying with baselining requirements. As a result, the program was adjusted to support businesses struggling to file employment records within the REDI application period. The REDI application opens and closes every quarter to ease baselining constraints. The CRD outreach managers have also been assigned to assist businesses with their application and carry them through the grant life cycle.

OUTCOMES In FY 2025, 24 businesses applied for a REDI grant. Of those, 11 contracts were executed, with four agreements under negotiation. Actual funds of $126,000 were paid out during FY 2025, reflecting the creation and retention of 11 new full-time positions.

The REDI grant currently has obligations of nearly $1.9 million, projecting the creation of 371 new full-time positions in rural communities over the next few years. In FY 2025, applications were submitted by businesses located in the following rural counties: • • • • • •

Box Elder Cache Duchesne Garfield Iron Sanpete

• • • • •

San Juan Sevier Tooele Uintah Washington

Reimbursement is issued after verifying each new position has been created and the annual gross wage meets the required criteria at the end of 12 consecutive months. As a post-performance program, contracts for this grant extend across fiscal years.

RURAL REVOLVING LOAN FUND Program funds may be used to award loans to rural communities or rural health care special districts to finance qualified projects. Before it may qualify for a loan, a rural community or rural health care special district must exhaust all other means of securing funding from the state. The entity then enters into a loan contract with the office.

CHALLENGES & ACHIEVEMENTS This funding opportunity is the first of its kind administered by GOEO. The revolving loan fund requires established administrative rules and application procedures, and cooperation with the state treasurer for loan processing. OUTCOMES In FY 2025, the office entered into a 30-year, $17.5 million loan agreement and contract with San Juan Hospital to replace its critical access hospital building, originally constructed in 1958. Loan payments will be made in monthly installments. San Juan Hospital serves as a primary facility for inpatient and outpatient healthcare services in a rural county of over 14,000 residents. It employs more than 130 people who work for San Juan Health.

RURAL COWORKING AND INNOVATION CENTER GRANT

• • • • • • • • •

Green River, Emery County Hanksville, Wayne County Moab, Grand County Monticello, San Juan County Orangeville, Emery County Escalante, Garfield County Panguitch, Garfield County Price, Carbon County Vernal, Uintah County

RURAL ECONOMIC BLUEPRINT PROGRAM GOEO’s executive director and the Center for Rural Development team visited all 24 of Utah’s rural counties in 2024 to solicit feedback on existing programs and identify service gaps. Economic development planning services were a consistent need across communities. The CRD director, Colette Cox, responded to this need by developing the Rural Economic Blueprint Program, a new in-house economic development planning program for rural communities across the state.

U.C.A. 63N-4-503 The Rural Coworking and Innovation Center Grant assists in creating facilities designed to provide individuals working within designated rural areas with the infrastructure and equipment needed to participate in today’s online workforce. Funding previously allocated to this program has been redirected to RCOG. Future requests for the development of coworking and innovation centers will be made through an RCOG application. Coworking and innovation centers are now in the following locations: • Blanding, San Juan County • Cedar City, Iron County • Fountain Green City, Sanpete County

CHALLENGES & ACHIEVEMENTS In January 2025, new economic development planning staff with experience in rural Utah were hired to build and pilot the program in its first year. From January to April, a planning process was designed to be efficient and effectively evaluate the strategic position of rural economies. It also worked closely with local stakeholders to develop a vision for the future and a plan to get there. In April, invitations to apply were distributed to rural communities, and nine communities applied to participate.

OUTCOMES Ultimately, nine communities were selected to participate in the program’s pilot year. All awardees were onboarded into the spring 2025 work pipeline and will finish the Rural Economic Blueprint Program process in the winter of 2025.

Cohort 1

Cohort 3

•

Emery County

•

Daggett County

•

Green River City

•

Town of Dutch John

•

Fillmore City

•

Morgan County

Cohort 2 •

San Juan County

•

Monticello City

•

Blanding City 23

Utah Innovation Center U.C.A. 63N-3-204 The Utah Innovation Center supports innovators by connecting them with a broad range of assets and resources, including the chance to apply for equity-free research and development funding through the federal Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. The center is proud to have facilitated Utah small businesses receiving almost $375 million in research and development funding since its inception. In addition, the team promotes efforts to connect and collaborate with members of Utah’s world-class industry, higher education, and entrepreneurship support organizations.

The team offers its services statewide, free of charge, giving Utah’s technology-oriented companies a distinct advantage in today’s competitive environment. The center awarded 20 microgrants totaling $74,000 to Utah small businesses applying to the SBIR/STTR program, and $200,000 in nonrecourse loans to businesses that previously won grants or contracts. Funding was provided through the Utah Technology Innovation Funding program.

APEX Accelerator (Rural Report) The APEX Accelerator program helps Utah businesses compete in the government marketplace by providing consulting services, workshops, webinars, and networking opportunities. FY 25, APEX Accelerator: • Consulted 183 new clients in rural Utah (31% of all new clients). • Helped Utah rural companies receive $167,463,690 in federal, state, and local contract awards. • Held 23 events in rural Utah (18% of APEX Accelerator events this year occurred in rural Utah). Examples of events from this fiscal year include

the Small Business Innovation Research/Small Business Technology Transfer Workshop, Introduction to General Services Administration (GSA), The Construction Economy Outlook Spring 2025, APEX Accelerator at the Brian Head and Parowan Chamber, Division of Facilities and Construction Management Meet & Greet at Utah Tech University, Forest Products Industry Day, How Small Businesses Can Utilize the Defense Production Act (DPA) Title III, and My Small Business Administration (SBA) Certifications

Utah Broadband Center The Utah Broadband Center (UBC) works to ensure all Utahns have access to reliable and affordable high-speed internet service. Broadband is essential for a thriving economy today, whether in urban or rural areas. Providing high-speed internet to every home and business will propel the state’s trajectory as the fastest-growing and most economically vibrant region in the nation and world.

UBC is monitoring the progress and, for some, the completion of infrastructure projects awarded through the state’s Broadband Access Grant. It is also completing the grant process for administering the state’s $300,000,000 federal Broadband Equity, Access, and Deployment program to ensure every household and business in Utah has high-speed internet access by 2030.

UBC implements the state’s broadband plan, working with the Utah Broadband Center Advisory Commission, which includes state legislators and state agencies. Addressing infrastructure deployment, affordability, and accessibility through digital skill building, the state plan serves as a resource to ensure everyone, regardless of socioeconomic status, can access high-speed internet to participate in today’s online economy.

The Utah Legislature approved relocating the Utah Broadband Center from the Governor’s Office of Economic Opportunity to the Utah Department of Transportation, effective July 1, 2025.

PROGRAM RESPONSIBILITIES: • Facilitates the Utah Broadband Alliance, which brings together public and private stakeholders working to deliver highquality broadband to Utah • Convenes the Utah Broadband Center Advisory Commission, which recommends UBC’s use of federal funds • Maintains the statewide residential and commercial broadband availability maps • Administers the state’s Broadband Access Grant program • Facilitates a statewide Digital Connectivity Plan • Administers federally-funded broadband programs for the state

Housing and Transit Reinvestment Zone Act & First Home Investment Zone Act U.C.A. 63N-3-6 AND 63N-3-16 GOEO administers the Housing and Transit Reinvestment Zone (HTRZ) and the Housing First Investment Zone (FHIZ) programs to support municipalities in tackling housing affordability challenges. As of May 2025, the office has reviewed nine HTRZ proposals submitted by cities, and the HTRZ board has approved eight of them. The eight approved proposals are located in Farmington, Lehi, two in Salt Lake

City, Sandy, South Jordan, South Salt Lake, and Vineyard, and provide a total of 48,066 housing units, which is a 146% increase over market-driven plans. The proposed HTRZ developments include 6,410 affordable units, or 13.3% of the total housing units. As a newer program, the office has not yet received a FHIZ proposal, but like HTRZs, FHIZs are designed to promote affordable housing and homeownership.

Business Recruitment & Expansion U TA H C O D E T I T L E 6 3 N , C H A P T E R 2 , PA R T 1 The Business Recruitment and Expansion team helps accelerate business growth and job creation through sustainable, targeted expansions and relocations. The team’s primary economic development tool is Utah’s Economic Development Tax Increment Financing (EDTIF) program. Through this program, financial incentives are available for select companies that: • • • • •

Create new, high-paying jobs Help improve the standard of living Increase the tax base Attract and retain top-level management Diversify the state’s economy

Using the criteria listed above, the team recommends financial incentives for local and out-of-state companies seeking to expand in or relocate to Utah. The GOEO Board votes on all proposed incentives in a public meeting, and the office’s executive director provides the final sign-off on all awarded incentives. Incentives are offered as tax credits or grants. They are disbursed only after the company meets contractual performance benchmarks, including job creation, capital expenditure, and payment of new state taxes. SINCE ITS INCEPTION IN 2005, APPROXIMATELY TWO-THIRDS OF THE COMPANIES PARTICIPATING IN THE STATE’S TAX CREDIT INCENTIVE PROGRAM ARE UTAH-BASED.

FY 2025 EDTIF HIGHLIGHTS: Projections based on the FY 2025 EDTIF/REDTIF approvals Trends for the year included more projects

18 participating companies Over $6.68 BILLION projected capital investment Over $343 MILLION projected new state revenue

3,841 new high-paying jobs projected Over $3.79 BILLION projected new state wages in 20 years off the Wasatch Front and into rural Utah, as well as investments in industries such as technology and automation. Thanks to modifications of the EDTIF program for rural areas and the Rural Economic Development Tax Increment Financing (REDTIF) tax credit program, projects located in rural areas of the state qualified for more significant incentives. With this tool, Utah has seen unprecedented economic opportunities flow to its more rural communities, with three of 18 approved projects this year choosing a rural site. The projected capital investment in rural Utah from announced projects in FY 2025 amounts to more than $556 million.

International Trade & Diplomacy U TA H C O D E T I T L E 6 3 N , C H A P T E R 1 9 GOEO’s International Trade and Diplomacy team partners with international organizations in Utah, including World Trade Center Utah (WTC Utah), to coordinate the state’s international business promotion activities. These include trade missions, trade shows, and business workshops. Last year, GOEO hosted more than 40 dignitaries from around the world. Additionally, the team collaborated with the governments of Austria, South Korea, Iceland, and Ukraine to execute Utah’s various international partnership initiatives.

The team builds lasting international relationships for Utah by coordinating with foreign governments and hosting dignitaries, including heads of state, ministers, ambassadors, consuls general, and other international leaders. In FY 2025, GOEO and WTC Utah organized trade missions to Japan and South Korea in October of 2024 and to Canada in April of 2025. During these trade missions, 70 government, business, and community leaders participated in 46 activities focused on advanced manufacturing, technology, and diplomatic relations.

Targeted Industries Utah strengthens both new and established workforce sectors by investing in key industries. This targeted support creates lasting advantages for the state’s already strong economy. The state has five targeted industries selected for current and potential contributions to its growing economy. Utah’s targeted industries are reevaluated every five years by an independent third-party firm to ensure alignment with emerging market trends, economic impact potential, and the state’s long-term strategic objectives. This regular analysis helps Utah remain competitive by prioritizing industries with the greatest opportunity for sustainable growth, innovation, and job creation. The next formal reassessment is scheduled for 2026.

ADVANCED MANUFACTURING Utah’s advanced manufacturing industry includes cutting-edge companies dedicated to expanding advanced materials, manufacturing, technology development, and design sectors. Manufacturing is one of Utah’s largest industries, making significant gross domestic product contributions to the state. On average, manufacturing jobs pay 18.4% more than other industries. The private sector added approximately 252 new manufacturing jobs in the past year.

AEROSPACE & DEFENSE Utah’s aerospace and defense industry includes many widely known and specialized companies contributing to the commercial and defense supply chains. It accounts for over 1,500 companies and organizations and

more than 32,000 jobs. The industry grew more than 12% over the last five years. One area with new growth opportunities is within advanced air mobility (AAM). Utah proactively leads the nation in its AAM efforts, with plans to deliver large cargo and passengers as part of its normal operations within the next decade.

FINANCIAL SERVICES Utah’s financial services industry and workforce include commercial and industrial banks, credit unions, fintech businesses, insurance organizations, and other financial services enterprises. In 2024, the industry contributed 9.7% of the state’s gross domestic product. Utah is home to 15 of the country’s 24 industrial banks. The state currently holds over $206 billion in assets in its industrial bank companies, which amounts to 85.6% of all assets held in the U.S. by industrial banks.

LIFE SCIENCES & HEALTHCARE Utah’s life sciences industry is one of the nation’s fastest-growing communities. The industry had a 4.1% average annual job growth in the past decade. It also supports over 1,900 employers, including larger companies such as Intermountain Health and University of Utah Health, supplying medical devices, pharmaceuticals, diagnostics, genomics, digital health, biological, medical labs, and contract manufacturing. Life science firms are located in rural and urban parts of the state, with 20 out of the 29 counties having at least one life science firm.

SOFTWARE & INFORMATION TECHNOLOGY Utah’s software and information technology industry has been at the forefront of innovation, housing cutting-edge companies since the 1980s. The industry is an impactful economic driver, with over 10,300 information technology-related companies and organizations calling Utah home and job growth averaging 2.8% annually (2019 to 2024).

Tourism U.C.A. 63N-7-102 The Utah Office of Tourism plays an integral role at GOEO by stimulating traveler spending. It partners with local communities to market the state and to enhance and develop visitor economies to benefit residents, visitors, and stakeholders. The office created the Red Emerald Strategic Plan to guide these efforts, identifying five imperatives for promotion and product development: • • • • •

Continue powerful branding Prioritize quality visitation Enable community-led visitor readiness Distribute visitation Improve organizational effectiveness

The FY 2025 marketing campaigns attracted travelers willing to spend more money and participate in more activities. The campaigns also educated visitors on how to travel responsibly and engage thoughtfully in our local communities. The southern and northern Utah advertising campaigns influenced 32

approximately 1.4 million leisure trips in Utah and over $2.9 billion in visitor spending. The ski campaign also performed well, influencing about 637,000 trips, resulting in approximately $1.8 billion in visitor spending. Utah’s international visitor economy continues to be a powerful economic driver, contributing $999.9 million to the state in 2024. These exports account for 7.5% of all visitor spending, with the average international visitor spending $1,205 — 41.5% more than their domestic counterpart. To foster this growth, the state engaged in strategic international outreach: • Hosting 50 familiarization tours and press trips brought international journalists and tour operators to Utah. These efforts created new itineraries and marketing opportunities to promote the responsible exploration of Utah, generating over $5 million in earned media from publications

like The Telegraph of the U.K. and National Geographic, Benelux. • Participating in seven international missions and global trade shows, targeting key markets in Europe, Asia, and the Americas, including the Brand USA Mexico Mission, Brand USA Travel Week London, and the Utah Office of Tourism-led missions in Région Sud of southern France and Australia. The office continued to engage and support local communities and destinations through several programs and grants. In FY 2025, 54 grants totaling $4.16 million were awarded from the Traditional Cooperative (Co-Op) Marketing Program. Of these grants, 36 were awarded to organizations in rural communities throughout Utah. Since its creation in FY 2006, the program has funded 1,051 applications totaling $62.1 million and extended the state’s brand to $124.2 million in out-of-state marketing dollars.

The Utah Office of Tourism staff meets regularly with local officials to understand their needs and how to best assist in developing their visitor economies. Between 2023 and 2024, it issued 30 Economic Development Administration subgrants totaling $1.1 million. Counties and cities continue to use this federal funding for feasibility and economic development studies, product development, and enhanced infrastructure, such as signage, in their communities. The office completed its fourth wave of a statewide resident sentiment survey conducted by the Kem C. Gardner Policy Institute to gauge resident attitudes regarding travel and tourism. Most Utah residents have favorable views of tourism, but there are concerns about housing prices and environmental impact — particularly in communities that serve as gateways to Utah’s most visited attractions.

Film Production U TA H C O D E T I T L E 6 3 N , C H A P T E R 8 The Utah Film Commission plays a vital role in the success of the Governor’s Office of Economic Opportunity by promoting the state as a destination for film, television, and commercial productions. Film production creates jobs in the creative sector, supports local businesses, and encourages tourism across the state. Film production continues to be a reliable economic driver that impacts the entire state. In the last 10 years, Utah’s film incentive has created over $600 million in direct spending by productions and related vendors. A 2021 study from Olsberg SPI, commissioned by the Motion Picture Association of Utah, revealed the value of film production in the state. Utah’s economy receives $7 for each tax dollar spent on the film incentive tax credit. The Rural Utah Film Incentive Program provides additional funding for productions that shoot at least 75% of their production days in a rural county. Since 2022, 28 productions have utilized the Rural Utah Film Incentive Program, and those productions have collectively spent over $200 million in Utah. This economic impact is vital to our rural communities, specifically for local businesses ranging from accommodations and restaurants to transportation and construction. Additionally, the Utah Film Commission, in partnership with the Utah Office of Tourism, launched the Utah Film Trail this year, inviting film enthusiasts to experience iconic landscapes firsthand. Featuring a series of physical markers around the state, the trail guides

travelers off the beaten path to discover the real-world locations featured in some of their favorite films and television shows. The Utah Film Commission also serves as a liaison to the broader entertainment industry by supporting local film events and working with higher education to create workforce training opportunities around the state.

NOTABLE ACHIEVEMENTS • $17.9 million in state film incentives was awarded during the past 12 months to 36 productions shooting in Utah, including a mix of local and out-of-state feature films and TV series, yielding a total estimated spend of $136.2 million • Film production took place across the state in 15 counties, including Davis, Grand, Iron, Juab, Millard, Salt Lake, San Juan, Sanpete, Summit, Tooele, Utah, Uintah, Wasatch, Washington, and Weber • 55% of all Utah filming locations are in rural counties • The Film Ready Utah program has certified 29 Utah communities to support film productions and enable economic impact across the state • A 2024 Strategic Marketing and Research Insights study estimated $600 million per year in Utah film-motivated tourist spending over 10 years, with up to 39% of visitors indicating that a film or television series was among the primary motivators for visiting a particular destination in the state

Yellowstone Season 1 (2018), Paramount Network

Utah’s Office of Regulatory Relief U TA H C O D E T I T L E 6 3 N , C H A P T E R 1 6 The Office of Regulatory Relief administers a general regulatory sandbox created by the Utah Legislature in 2021. The regulatory sandbox gives organizations, including businesses and nonprofits, one year to experiment with new and innovative ideas, without the burden of regulatory barriers. Possible one-year extensions are also available. Organizations with products, services, or business models that don’t neatly fit into the state’s current regulatory framework can submit ideas they would like to test in the sandbox to the Office of Regulatory Relief.

As a sandbox participant tests its idea, state regulators collect data about how well the organization and idea work without burdensome regulations. Regulators evaluate the experiment’s results at the end of the predetermined term. Once regulators have gathered all the facts, they provide them to the Legislature. The office invites residents and organizations to suggest laws and regulations that could be modified or eliminated to reduce their regulatory burden. Please send feedback and suggestions to regrelief@utah.gov.

UPSTART Program U TA H C O D E T I T L E 6 3 N , C H A P T E R 2 0 First developed and implemented in 2009, UPSTART is a legislatively funded statewide program that uses home-based educational technology with strong parental involvement and engagement to develop preschool children’s school readiness. UPSTART delivers an individualized reading, math, and science curriculum, emphasizing reading, to preschool children across the state.

manages the UPSTART program as an independent contractor for the state of Utah now through June 2029. The institute has successfully enrolled students across Utah, with an increased focus on reaching individuals from rural areas. Additionally, they have expanded their partnerships with various organizations to enhance support for rural and underserved populations across the state.

Selected through the Request for Proposal (RFP) process, Waterford Research Institute

Learn more at business.utah.gov/upstart.

Utah Small Business Credit Initiative Fund - Rev. 2.0 U TA H C O D E T I T L E 6 3 N , C H A P T E R 3 , PA R T 8 Funded by the U.S. Department of the Treasury, the Utah Small Business Credit Initiative (USBCI) supports Utah’s small businesses by providing accessible financing to those who may not qualify for traditional business loans. Its mission is to foster business growth, create jobs, and stimulate economic opportunities across the state. As of June 30, 2025, USBCI has committed or expended $26.6 million — 38.5% of the state’s total $69 million allocation. This funding has generated $96.3 million in private investment and supported 550 jobs across 50 businesses. This is a notable acceleration compared to previous performance, with

FY 2025 commitments totaling $25.6 million, with a 2,423.8% increase compared to the $1 million committed in FY 2024. With an economic impact ratio of 3.6-to-1, USBCI is delivering powerful returns for Utah. Every public dollar committed has leveraged $3.60 in private investment. To build on this momentum, USBCI aims to leverage an estimated $690 million in private capital statewide, aiming to deliver a 10-to-1 ratio by 2030. To help make this happen, USBCI offers two primary lending programs to mitigate risk for lending partners:

• Loan Participation Program (LPP): USBCI funds up to 50% of the total loan amount, reducing lenders’ financial risk and helping business owners access lower interest rates. • Capital Access Program (CAP): USBCI contributes up to 7% in loan-loss reserves for each approved loan, protecting lenders in the event of a default. Since launching in 2022, USBCI has partnered with 16 community banks and five economic development organizations to deploy funding across the state. The program’s reach has been broad — supporting businesses in 16 of Utah’s 29 counties, with 48% of the committed capital directed to rural areas. USBCI is focused on expanding access to capital in underserved urban and rural communities, ensuring economic opportunity reaches all corners of the state.

These investments have supported key industries — such as hospitality (hotels, motels, RV parks), repair services, convenience stores, freight trucking, education, construction, and healthcare — to create jobs and increase economic development. Funds were primarily used to purchase or construct buildings, secure working capital, and acquire fixed assets. USBCI continues to demonstrate strong fiscal discipline. Despite rapid growth in funding and program activity, administrative expenses for FY 2025 increased by only 0.32% to $526,947, a minimal rise from the $525,258 spent in FY 2024. By efficiently deploying capital during the early, high-impact stages of business growth, USBCI will continue to attract private investment, fuel job creation, and drive economic development across Utah.

Utah Center for Global Talent U TA H C O D E T I T L E 6 3 N , C H A P T E R 1 8 The Utah Center for Global Talent was established in 2021 under S.B. 53 to empower individuals and businesses by streamlining the recruitment and retention of global talent. The center collaborates with state and federal partners to advise on immigrant integration strategies, enhancing economic opportunities for New Americans and foreign-born individuals in Utah.

ACCOMPLISHMENTS In the past year, the center focused on key initiatives to expand Utah’s global workforce. It coordinated Global Talent Pathways events — both in-person and virtually — to educate businesses on leveraging a global workforce. These events addressed high-demand sectors such as advanced manufacturing, healthcare, and education, providing information on various employment-based visa pathways. Through its efforts, it provided immigration-related resources to over 371 individuals and businesses1. A significant area of progress has been in citizenship, where the number of newly naturalized citizens residing in Utah increased from 4,787 to 6,650 from 2022 to 2023 (the latest U.S. citizenship information), due in part to the efforts of the center’s Utah Citizenship Initiative. The center’s work is further advanced through the New Americans Task Force, a collaboration with The Center for Economic Opportunity &

Belonging, established in 2022. This task force, which includes over 200 stakeholders from diverse sectors, advises on immigrant integration issues. A recent outcome of this coalition was a report addressing employment barriers for internationally trained professionals. The report’s findings were based on a statewide survey that garnered over 6,000 responses from internationally trained professionals representing various industries and careers. This report also highlights five recommendations from respondents to increase opportunities for professionals seeking licensure in Utah.

CORE INITIATIVES The center’s work includes: • Expanding business access to employment-based visas • Increasing coordination between the state and organizations working with Utah’s New American population • Encouraging citizenship and naturalization as a key integration strategy In May 2025, the center contracted its work to The Center for Economic Opportunity & Belonging through June 2026, which continues to drive these initiatives in collaboration with GOEO’s managing director of business services and executive team. 1 The number reflects engagement from the work of the New Americans Task Force, which GOEO’s Center for Global Talent administers with The Center for Economic Opportunity & Belonging.

Utah Redevelopment Agency Portal U . C . A . 17 C - 1 - 6 0 3 As outlined by the Legislature, GOEO maintains a database for community reinvestment agencies to track the financial details for each project area and the taxing entities with which they partner.

The Utah Redevelopment Agency database is available at goedcommunity.utah.gov/RDA/s.

Contract Compliance The Governor’s Office of Economic Opportunity compliance team reasonably assures that companies receiving a tax credit or cash payment have met legislative, regulatory, and contractual requirements before receiving tax incentives. The team includes members with accounting, finance, and business economics training and experience. It uses best practices to collect, verify, and store statutorily-required performance metrics. We strive to ensure the proper use of taxpayer funds. GOEO manages and executes tax incentives, pass-through appropriations, and other economic incentive contracts. With assistance from the office of the State Attorney General, GOEO ensures that agreements capture legislative direction and intent, and that they are legally sound. Awards are typically post-performance and require each company’s participation through accurate reporting, assisted by data-sharing agreements with the Utah Department of Workforce Services and the Utah State Tax Commission. GOEO utilizes the Salesforce platform to create contracts, collect electronic signatures, retain relevant documents, and manage contracts. In FY 2025, the office processed 433 contracts.

BUDGET FY 2025 Operations Budget

FY 2025 Fund Budget

FY 2025 Operations Program Expenses

Innovation in Artificial Intelligence Grant Pilot Program

Industrial Assistance Account

Manufacturing Modernization Grant

Strategic Innovation Grant Pilot Program

Redeveloping Matching Grant

Economic Assistance Grant Program

FY 25 Budget TOURISM

SYSTEMS & CONTROL STRATEGIC INITIATIVES ****PASS-THROUGH

***OTHER

OPERATIONS INCENTIVES & GRANTS FILM

BUSINESS SERVICES

$20 M

$60 M

INCOME TAX FUND

DEDICATED CREDIT

$80 M

$100 M

BUDGET ITEM

GENERAL FUND

BUSINESS SERVICES

$2,314,200

$1,790,800

—

$1,000

—

$933,200

$5,039,200

$914,100

$82,300

—

$996,400

INCENTIVES & GRANTS

$2,405,500

$303,500

$55,000

—

$5,727,200

$8,491,200

OPERATIONS

$2,736,800

$815,600

—

($1,000,000)

$2,552,400

***OTHER

$11,876,000

$4,775,000

$12,182,300

—

$2,032,600

—

$30,865,900

14%

****PASS-THROUGH

$9,565,700

$51,613,200

—

$ 6,500,000

$67,678,900

32%

STRATEGIC INITIATIVES

$9,935,700

$44,636,600

$ 2,250,000

$24,242,300

$ 139,000

—

$653,100

$81,856,700

38%

SYSTEMS AND CONTROL

$3,760,600

$4,934,900

—

$128,500

—

$8,824,000

TOURISM

$4,392,300

$1,414,300

—

$723,000

$118,000

$1,458,700

$8,106,300

$47,900,900

$110,366,200

$14,487,300

$24,242,300

$3,024,100

$118,000

$14,272,200

$214,411,000

100%

FILM

GOEO BUDGET

GENERAL FUND GF ONE TIME* RESTRICTED

$40 M

TRANSPORTATION

TOTAL BUDGET***

FEDERAL

PERCENT OF TOTAL

* Includes one-time and non-lapsing/carryforward balances ** Restricted fund balances reported separately (see FY2024 Fund Budget) *** Other incudes hotel impact, Utah Inland Port Authority, Utah Innovation Lab, Point of the Mountain, Utah Sports Commission, World Trade Center Utah, Utah State Fairpark, and Utah Fairpark Area Investment and Restoration District **** Pass-through includes the Economic Assistance Grants

Fund Budget

TOURISM MARKETING

USBCI

MOTION PICTURE INCENTIVE

BUDGET ITEM

GENERAL FUND

$10 M

$20 M

GENERAL FUND GF ONE TIME* RESTRICTED

$30 M

DEDICATED CREDIT

TRANSPORTATION

$40 M

$50 M

TOTAL BUDGET

FEDERAL

PERCENT OF TOTAL

MOTION PICTURE INCENTIVE

—

$812,500

$1,479,100

—

$2,291,600

USBCI

—

$24,979,100

—

$1,131,800

—

$50,050,300

64%

TOURISM MARKETING

—

$6,206,500

$19,640,500

—

$10,000,000

$25,847,000

33%

GOEO BUDGET

—

$31,998,100

$21,119,600

$1,131,800

—

$23,939,400

$78,188,900

100%

*Includes one-time and non-lapsing/carryforward balances

FY 25 Program Expenses USBCI TOURISM SYSTEMS & CONTROL STRATEGIC INITIATIVES ****PASS-THROUGH ***OTHER OPERATIONS INCENTIVES & GRANTS FILM BUSINESS SERVICES

BUDGET ITEM

PERSONNEL

TRAVEL

$20 M

$40 M

$60 M

$80 M

$100 M

CURRENT EXPENSE**

DATA PROCESSING DTS

GRANTS/ PASSTHROUGH

NON-LAPSING

TOTAL EXPENSE*

PERCENT OF TOTAL

$1,867,100

$29,700

$1,197,000

$83,100

$381,700

$1,480,600

$5,039,200

$736,300

$16,400

$118,500

$45,200

$891,700

$1,480,000

$3,288,100

$2,207,300

$115,000

$1,144,900

$290,600

$4,643,800

$89,500

$8,491,100

$735,700

$27,200

$948,900

$53,900

($948,800)

$1,729,600

$2,546,500

***OTHER

—

$1,246,900

—

$17,586,400

$12,032,600

$30,865,900

11%

****PASS-THROUGH

—

$50,000

—

$42,286,500

$25,342,400

$67,678,900

23%

STRATEGIC INITIATIVES

$1,910,300

$23,700

$23,349,700

$40,300

$16,159,900

$40,372,900

$81,856,800

28%

SYSTEMS AND CONTROL

$3,415,900

$26,500

$951,200

$312,000

$1,200

$4,117,100

$8,823,900

TOURISM

$3,399,100

$168,800

$19,301,100

$179,000

$5,811,200

$5,094,300

$33,953,500

12%

$582,100

$9,900

$23,013,100

$27,800

$96,500

$26,320,900

$50,050,300

17%

$14,853,800

$417,200

$71,321,300

$1,031,900

$86,910,100

$115,713,800

$292,594,200

100%

BUSINESS SERVICES FILM INCENTIVES & GRANTS OPERATIONS

USBCI GOEO BUDGET

* Total expense includes operations and fund budgets ** Current expense includes 1x capital expense *** hotel impact, Utah Inland Port Authority, Utah Innovation Lab, Point of the Mountain, Utah Sports Commission, World Trade Center Utah, Utah State Fairpark, and Utah Fairpark Area Investment and Restoration District **** Pass-through includes the economic assistance grants

Innovation in Artificial Intelligence Grant Pilot Program U.C.A 63N-3-1502 The Artificial Intelligence Grant Pilot Program supports the development of a program, materials, and curriculum focused on: 1. Teaching an artificial intelligence course to students, emphasizing practical training that prepares students for careers in technology. 2. Funding a business partner to support its implementation. The program bridges academic learning with industry needs, building a workforce ready

to advance artificial intelligence and related fields. Three entities received awards of $400,000, $600,000, and $1,000,000. All awardees are required to submit midyear and annual reports. Progress: In June 2025, all three grantees submitted written midyear reports to GOEO summarizing their project progress. Each met the required timelines. The pilot program ends in September 2026. All grantees must submit a final report before

Industrial Assistance Account U TA H C O D E T I T L E 6 3 N , C H A P T E R 3 , PA R T 1 GOEO manages the legislature-funded Industrial Assistance Account (IAA). It has three purposes: 1. Provide grants and loans to entities that provide a unique economic opportunity and contribute to the state’s financial well-being. The unique opportunity must be in concert with other state, federal, or local agencies’ economic benefits and act in concert with freemarket principles. 2. Allocate funds to reimburse for-profit businesses for the costs incurred to recruit, hire, train, and hire employees in a newly created job. 3. And, beginning June 2022, it can grant funds to an entity offering technical assistance to a municipality in connection with housing, transportation, and growth planning.

F Y 2 0 2 5 I N D U S T R I A L A S S I S TA N C E ACCOUNT CHANGE IN POSITION FY 2024 EXPENDITURE SUMMARY IAA ALLOCATIONS Economic Opportunities

BUDGET

EXPENDED

AVAILABLE BALANCE

ENCUMBERED

$46,434,907

$15,449,049

$18,774,216

$12,211,643

Rural Fast Track

—

Post-Performance Grants

—

$46,434,907

$15,449,049

$18,774,216

$12,211,643

ALLOCATIONS SUBTOTAL

FY 2025 EXPENDITURE SUMMARY IAA ALLOCATIONS Economic Opportunities

BUDGET

EXPENDED

AVAILABLE BALANCE

ENCUMBERED

$33,739,172

$9,513,891

$19,187,323

$5,037,958

Rural Fast Track

—

Post-Performance Grants

—

$33,739,172

$9,513,891

$19,187,323

$5,037,958

ALLOCATIONS SUBTOTAL

FUND CHANGE IN POSITION IAA ALLOCATIONS

BUDGET

Economic Opportunities

($12,695,735)

EXPENDED ($5,935,158)

ENCUMBERED $413,108

AVAILABLE BALANCE ($7,173,685)

NOTES IAA expense is shown on a cash basis from July 1 to June 30 each year Includes FY26 appropriations approved by the legislature in General Session 2025

Manufacturing Modernization Grant U.C.A. 63N-3-1102 The Manufacturing Modernization Grant incentivizes Utah businesses to modernize, establish, relocate, retain, or develop manufacturing in the state. Its goal is to increase Utah’s manufacturing capacity, reduce supply chain setbacks, and lessen American dependence on foreign manufacturing. In FY 2024, the grant funded 21 projects, allocating $10 million in appropriation funds. Of the 21 projects, 14 were completed in FY 2025, and final reimbursements were distributed.

Strategic Innovation Grant Pilot Program U TA H C O D E 6 3 N , C H A P T E R 3 , PA R T 9 The Strategic Innovation Grants for air and water were awarded to Utah-based businesses in FY 2023 and FY 2024 to implement strategic and innovative solutions addressing air quality or water conservation. Companies awarded project funding work with third-party organizations such as the Kem C. Gardner Policy Institute at the University of Utah, the Institute of Land, Water & Air at Utah State University; or the Bingham Research Center at Utah State University to track results and complete final reports assessing outcomes and viability. As of FY 2025, four of 11 final reports from the FY 2023 cohort and three of 12 from the FY 2024 cohort have been received. All projects that have submitted final reports have received their final grant reimbursements. All strategic innovation projects are under review by third-party organizations and are expected to be completed by July 1, 2026.

Redeveloping Matching Grant U TA H C O D E 6 3 N , C H A P T E R 3 , PA R T 1 2 The Redeveloping Matching Grant awarded funding to local governments to support projects or services — such as water conservancy districts and special services districts — that increase the supply of affordable, high-quality living units and conserve or develop water assets. Qualified entities must provide an equal amount of matching funds and act in accordance with the American Rescue Plan Act. Eight entities were awarded $29.7 million in FY 2021 and FY 2022. All awardees are required to submit annual reports, and all projects must be completed by 2025.

Economic Assistance Grant Program U.C.A. 63N-3-1002 The Economic Assistance Grant is a $4.5 million program that supports economic opportunities in Utah, focusing on industry, education, community development, and infrastructure. Projects aligned with Utah’s five targeted industries — advanced manufacturing, aerospace and defense, financial services, life sciences and healthcare, and software and IT — are prioritized. The grant funded 37 projects in FY 2025, awarding the $4.5 million appropriation.

TA X C R E D I T S Economic Development Tax Increment Financing

Enterprise Zone Tax Credit

New Convention Facility Development Incentive

Hotel Impact Mitigation Fund

Technology & Life Science Economic Development Act

Motion Picture Tax Credit

Utah Rural Jobs Act

Economic Development Tax Increment Financing U TA H C O D E T I T L E 6 3 N , C H A P T E R 2 , PA R T 1 The Economic Development Tax Increment Financing (EDTIF) program helps foster and develop key industry sectors in Utah, provides additional employment opportunities, and improves the state’s economy. Introduced in late FY 2021, the Rural Economic Development Tax Increment Financing (REDTIF) tax credit program refers to rural modifications of the EDTIF program that allow projects located in rural areas to qualify for more significant incentives. The state uses the EDTIF/REDTIF program for corporate retention and recruitment. The program offers a tax rebate to companies of up to 30% in urban areas and 50% for specific rural areas of new state taxes paid for up to 20 years. These companies must create jobs that pay 110% of the county average for urban areas and 100% in rural areas. EDTIF/REDTIF contracts are post-performance, only providing a state tax credit if the company meets at least 50% of its promised obligations.

OPPORTUNITIES In FY 2025, the GOEO board approved 18 companies to participate in the EDTIF/REDTIF program. The program’s participants this fiscal year are collectively projected over the next 20 years to create:

3,841 High-paying jobs $6,681,800,032 Capital investment $343,037,325 State tax revenue $3,795,591,567 In-state wages With the REDTIF tool, the state has seen economic opportunities flow to its rural communities. The three approved REDTIF projects in FY 2025 project more than $556 million in capital investment and more than $482 million in new state wages from high-paying jobs.

OUTCOMES Companies participating in the EDTIF program may be required to contractually report the number of employees and state taxes paid. Our office annually reviews these post-performance reports (called assessments) before issuing a tax credit. Assessments generally lag by two calendar years to accommodate corporate filings and tax reporting. Completion of an assessment is contingent on the time and accuracy of the company-provided data. An assessment’s completion date may impact data reported by the program in year-overyear comparisons. During the calendar year 2023 reporting period, the program completed 48 audits. Of these, 38%, or 18 companies, did not qualify for a tax credit.

APPROVED & CERTIFICATE FINALIZED 18

INCENTIVE DISQUALIFIED 5

ASSESSMENT IN PROGRESS

AUDIT STAGE SUBMISSION RECEIVED-REVIEWING COMPLETENESS

ASSESSMENT IN REVIEW

AWAITING COMPANY SUBMISSION ASSESSMENT HOLD

APPROVED & CERTIFICATE FINALIZED ASSESSMENT COMPLETE–AWAITING CONCURRENCE

45 29

INCENTIVE DISQUALIFIED 5

ASSESSMENT IN PROGRESS SUBMISSION RECEIVED-REVIEWING COMPLETENESS

ASSESSMENT IN REVIEW

ASSESSMENT HOLD

ASSESSMENT COMPLETE–AWAITING CONCURRENCE

AUDIT COMPLETED 54

FALSE 48

TRUE

From the approved and disqualified incentives, we found that the majority of these companies are in a cluster other than our five distinguished clusters. After that, our leading cluster is information technology, followed by aerospace and defense. “Other” describes the projects approved before 54 FALSE the change to the program, which created the REDTIF, that do not fit into a cluster. “Other” proj48 ects from that time can occur in any county, urban orTRUE rural. “Other - Rural” describes a company’s project that was approved after the creation of the REDTIF and qualified in rural Utah.

CLUSTERS ASSESSED

ADVANCED MANUFACTURING AEROSPACE AND DEFENSE FINANCIAL SERVICES INFORMATION TECHNOLOGY LIFE SCIENCES OTHER OTHER – RURAL 0

COMPLETED ASSESSMENTS

Since the EDTIF program’s inception in 2005, GOEO’s compliance team has assessed 166 companies and verified the creation of 53,319 new full-time jobs. For companies that did not have an audit year assessment, we assume there was no increase or decrease in employee count for reporting purposes. This data represents annual incremental increases or decreases.

ANNUAL INCREMENTAL INCREASE IN JOBS 60,000

53,319

50,000

total jobs created as of 2023

40,000 30,000 20,000 10,000 0

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021 2022 2023

For audits completed for calendar year (CY) 2023, new high-paid employees who received a paycheck above 110% of the county average wage were identified across all areas of the economy.

110% NEW FTES BY INDUSTRY SUM OF 110% FT JOB COUNT

AVERAGE SALARY OF NEW 110% FT JOBS

6,903

$113,299.57

507

$150,664.83

Information Technology Cluster

3,346

$161,056.58

Life Sciences Cluster

1,661

$175,099.20

$143,256.00

1,244

$96,113.42

Total: 13,760

Average: $139,914.93

CLUSTER Aerospace Cluster Financial Services Cluster

Outdoor Recreation Cluster Other

NUMBER OF JOBS AND AVERAGE NEW STATE REVENUE CY 2023 Over the program’s history, EDTIF-assessed WAGE CY 2023 REVENUE Compliance receives many requests to calculate new state revenue for companies with an EDTIF award. GOEO calculates new state revenue using paid and remitted employee withholdings, sales and use tax, and corporate tax that has increased since board approval. These calculations are verified using information from the Utah State Tax Commission. A percentage of these new state revenues can be credited to the EDTIF program if the company meets its contractually defined number of new, high-paying jobs. The chart below shows the dollar amount by type of cumulative new state revenue and new state revenue for CY 2023. CUMULATIVE NEW STATE REVENUE CY 2004–2023 Employee Withholding Revenue

$796,467,545.39

Sales and Use Tax Revenue

$164,857,362.47

Corporate Income Tax Revenue

$278,979,673.47

NEW STATE REVENUE CY 2023 Employee Witholding Revenue

$72,750,461.36

Sales and Use Tax Revenue

$8,167,918.15

Corporate Income Tax Revenue

$5,741,320.80

companies have created $1,212,779,576.18 in new state revenue and $905,732,814.26 in new state revenue after tax credits. The difference between these two amounts represents tax credits awarded based on the percentage of new state revenue incentivized by the EDTIF program, which is $307,046,761.92. NEW STATE NEW REVENUE ELIGIBLE FOR REVENUE AFTER REBATE REBATE

YEAR

APPROVED DISBURSEMENT

2004

$52,367

$96,975

$44,608

2005

$236,746

$438,418

$201,672

2006

$1,952,651

$4,590,428

$2,637,777

2007

$5,537,467

$15,435,264

$9,897,797

2008

$7,853,120

$23,683,804

$15,830,685

2009

$6,725,684

$21,551,550

$14,825,868

2010

$10,846,194

$36,834,767

$25,988,574

2011

$11,767,769

$45,339,155

$33,571,386

2012

$15,207,871

$49,616,522

$34,408,651

2013

$15,681,109

$53,131,242

$37,460,634

2014

$16,673597

$59,537,770

$42,864,172

2015

$19,504,481

$69,431,580

$49,927,099

2016

$18,187,727

$71,382,956

$53,234,511

2017

$20,800,388

$86,978,707

$64,178,319

2018

$24,196,058

$106,993,483

$82,824,379

2019

$34,998,706

$141,881,356

$106,882,649

2020

$27,261,415

$121,122,185

$93,860,446

2021

$24,967,415

$111,322,613

$86,355,197

2022

$22,323,402

$111,078,501

$88,755,098

2023

$18,706,964

$83,598,397

$64,882,432

$307,046,761.92

$1,212,779,576

$905,732,814

Enterprise Zone Tax Credit U TA H C O D E T I T L E 6 3 N , C H A P T E R 2 , PA R T 2 Enterprise zones are economic areas designated by local governments and approved by the GOEO. Eligible businesses within enterprise zones can apply for state income tax credits to invest in depreciable assets, including machinery and equipment, to help create new, above-average wage jobs and to rehabilitate older facilities.

INITIATIVES The Center for Rural Development works with the GOEO compliance team to review and approve business applicant claims for Enterprise Zone Tax Credit certificates. The center and compliance team also cooperate with the Automated Geographic Reference Center to update and refine all enterprise zone designation maps throughout the year.

CHALLENGES & ACHIEVEMENTS No new enterprise zone designation applications were accepted after Dec. 31, 2020, ultimately leading to the program’s sunset. All current designations will terminate on Dec. 31, 2024. The program will take on future applications to amend tax filings over the next three years.

OUTCOMES In FY 2024, 374 Enterprise Zone Tax Credits were issued, compared to 782 in FY 2023. Applications are made available every January for the previous three calendar years. GOEO provides eligible entities with a tax credit for the calendar year the depreciable asset(s) were placed into service, as reported in the table below.

YEAR

COUNT OF APPLICATIONS

DISBURSEMENT

PROPERTY NEW FTE ($750 INVESTMENT CREDIT PER FTE)

2016

120

$1,522,582

$22,362,764

2017

838

$9,928,509

$163,684,940

132

2018

1,132

$11,969,949

$164,902,819

126

2019

1,117

$11,763,724

$171,911,079

2020

917

$6,513,696

$150,754,584

2021

958

$7,440,764

$155,339,928

2022

893

$8,228,797

$182,389,970

2023

782

$7,492,210

$171,808,734

2024

374

$3,646,665

$78,487,908

TOTALS

7,131

$68,506,896

$1,261,642,726

517

New Convention Facility Development Incentive U.C.A. 63N-2-510 The New Convention Facility Development Incentive encourages the development of co-located hotels and convention spaces in Utah. It provides a post-performance tax rebate of up to $75 million for up to 20 years. In October 2018, GOEO’s Business Development Board approved the developer, Salt Lake City CH, to receive a post-performance tax credit to build a new Salt Palace Convention Center hotel in Salt Lake City. The hotel broke ground in the spring of 2020 and, when completed in the fall of 2022, provided approximately 700 rooms and added 62,000 square feet of meeting space to attract larger conferences, meetings, and conventions.

With the assistance of a third-party auditor, GOEO and the Utah State Tax Commission are validating and transferring the rates of state, county, and local sales taxes paid on the materials used in the hotel’s construction to the Convention Incentive Fund. After the hotel began receiving the incentive, GOEO and the Utah State Tax Commission successfully validated and processed $13.03 million in sales tax revenue. The hotel receives an incentive equal to 95% of sales tax claimed, validated, and paid, with 5% going to the Stay Another Day and Bounce Back Fund. The amount collected for the Stay Another Day and Bounce Back Fund is $600,224.

Hotel Impact Mitigation Fund U.C.A. 63N-2-512 In the fall of 2022, GOEO and the Salt Lake Convention Center accepted applications through a request for information process to help determine how to best administer the Hotel Impact Mitigation Fund. Affected hotels were provided an application starting in August 2023 to enter into a contract and submit a claim for up to $2.1 million annually for the first four years following the Salt Palace Convention Center hotel’s opening. Per statute, any additional funds not claimed in this annual process, plus 5% of sales tax revenue generated from the hotel, will go toward the Stay Another Day and Bounce Back Fund to help pay for the state’s tourism advertising, marketing, and branding. Salt Lake County is responsible for replenishing this account to a $2.1 million balance by providing supplemental funding in years two through four.

In FY 2024, five qualified hotels applied for $2.1 million available from the Hotel Impact Mitigation Fund. One affected hotel was awarded $234,077. As required by statute, the remaining funds were transferred to the Stay Another Day and Bounce Back Fund. Starting in FY 2025, the Stay Another Day and Bounce Back Fund administrators provided the remaining funding to the other four hotels for promotional advertising activities. In FY 2025, legislative changes to the program created a program that focused qualified hotels on losses specific to city-wide events. Seven qualified hotels applied for funds, with five qualifying for the total $2.1 million available.

Technology & Life Science Economic Development Act U.C.A. 63N-2-801 The Technology and Life Science Economic Development Act, commonly known as the life sciences tax credit, encourages investment and job creation in Utah’s life sciences industry. It offers a post-performance tax

credit of up to 35% of equity investments in life sciences companies for up to three years. No new applicants or tax credits have been issued in FY 2025.

Motion Picture Tax Credit U TA H C O D E T I T L E 6 3 N , C H A P T E R 8 The Motion Picture Tax Credit promotes the use of Utah locations, crew, and resources by film productions. It also provides incentives that allow Utah to develop a strong motion picture industry and compete with other states as a filming and production destination.

The program receives annual funds of $6.79 million in tax credits and an additional $12 million in tax credits specifically for productions that film in a rural county (see page 34 for more information).

High School Musical (2006), Disney Channel

Utah Rural Jobs Act U TA H C O D E T I T L E 6 3 N , C H A P T E R 4 , PA R T 3 The Utah Rural Jobs Act provides flexible and affordable capital, enabling eligible small businesses in rural Utah to expand and create high-wage jobs. Similar to the New Markets Tax Credit program, tax credits are provided to program investors. The program has three types of participants: • Investors who provide capital investment to a Rural Investment Company (RIC) • RICs that raise funds from investors to be invested in eligible small businesses • Eligible small businesses that may receive up to $5 million in capital through equity or debt loans for business development and expansion In CY 2017, three RICs applied for and were given investment authority over approximately $42 million, creating the first round of Rural Jobs Act (RJA) support. During the 2022 General Session, the legislature passed an update to allow more RICs to enter the program for an additional investment authority of $42 million, creating the second round of RJA support. Four applicants were selected in CY 2022 as part of the second round of RJA support. These new RICs will work over the next two years to fund rural projects that create high-paying jobs. Over the program’s life, the RJA will provide $84 million in potential investment loans to Utah businesses in exchange for $48.72 million in tax credits.

INITIATIVES Businesses that fall within the following industry types are encouraged to connect with RICs as they consider making investments in their growth: • • • • • • • •

Advanced manufacturing Aerospace and defense Agribusiness Energy and natural resources Financial services Life sciences Outdoor products Software and information technology

OUTCOMES The original three RICs reached the investment threshold needed to qualify for tax credits by the end of CY 2020 by providing $42 million to Utah businesses. Phase two tax credits will not commence until the fourth anniversary of the closing date. Phase I has officially been completed, and all RICs have exited the program. GOEO receives reports from an independent third party that include two types of job creation metrics:

NEW ANNUAL JOBS A statutory formula calculates aggregate new annual jobs reported in all prior annual reports to determine whether recapture would be needed upon the RIC’s exit from the program.

PHASE 1 2018 Annual Report

29.7

2019 Annual Report

111.5

2020 Annual Report

131.8

2021 Annual Report

114.5

2022 Annual Report

138.2

2023 Annual Report

129.1

TOTAL

654.8

PHASE 2 2023 Annual Report

2024 Annual Report

27.4

TOTAL

30.4

NEW HIGH-PAYING JOBS The prorated net number of new high-paying jobs from the time of investment.

PHASE 1 TOTAL

151.5

PHASE 2 TOTAL

44.54

No tax credits were issued this fiscal year.

COMMISSIONS, BOARDS & COMMITTEES Unified Economic Opportunity Commission

Economic Opportunity Board

Utah Board of Tourism Development

Women in the Economy Commission

General Regulatory Sandbox Program Advisory Committee

Rural Opportunity Advisory Committee

Unified Economic Opportunity Commission U.C . A . 6 3 N ‑ 1 A‑ 2 0 1 The Unified Economic Opportunity Commission (UEOC) developed, directed, and coordinated Utah’s statewide and regional economic development strategies. It also informed policy decisions and built consensus. Gov. Cox chaired the commission, which included senior leaders from Utah’s legislative and executive branches, education, local government, and subject matter experts. In 2024, the commission had three subcommittees specializing in the following areas of Utah’s economic development strategy: • Subcommittee on Talent, Education, and Industry Alignment • Committee on Housing Affordability • Subcommittee on Women in the Economy Beyond the work of its subcommittees, the UEOC worked with key industry leaders to create strategic plans in each of Utah’s targeted industries: • • • • •

Advanced manufacturing Aerospace & defense Financial services Life sciences & healthcare Software & IT

Additionally, the UEOC reviewed prior UEOC policy recommendations to understand their status, results, and impacts. Staff gathered and reviewed data with the help of the commission’s agency partners, who administered the policies and programs resulting from UEOC efforts. The UEOC’s legacy project before its disbandment in the 2025 Legislative Session was to create a statewide economic vision utilizing the 2034 Winter Olympics and Paralympics as a deadline. Read the full Gameplan 2034 and view the one-page summary at business.utah.gov. The following were the requirements and objectives of the commission: • Develop a 10-year statewide economic opportunity strategy • Develop solutions and policies for the significant challenges facing the state • Identify solutions for economic, infrastructure, and transportation growth • Identify solutions for education, training, and workforce development • Ensure the commission’s efforts are datadriven and evidence-based

Economic Opportunity Board U.C . A . 6 3 N - 1 A- 4 0 1 The Governor’s Office of Economic Opportunity Board is a nine-member board appointed by Gov. Cox and confirmed by the Senate. Board members serve four-year terms and represent key segments of Utah’s economy. The board consists of: • Five leaders from targeted industries • One representative of rural communities • One individual with direct entrepreneurial experience • One representative from higher education • One at-large member This board is crucial in fostering economic growth and opportunity for all Utah residents. Their responsibilities include advising GOEO team members on strategies for attracting, retaining, and expanding businesses, industries, and commerce throughout the state.

MEMBERS Carine Clark, Board Chair Chief Executive Officer | First Colony Mortgage Jesse Turley Managing Director | Private Banking Geri Gamber Executive Director | Southeastern Utah Association of Local Governments Vic Hockett Associate Commissioner | Talent Ready Utah Clint Morris Senior VP of Marketing | Lifetime Products Brigham Tomco Partner and CEO | Resilience Health

Utah Board of Tourism Development U TA H C O D E 6 3 N , C H A P T E R 7, PA R T 2 The Utah Board of Tourism Development has 15 members, appointed by the governor, who represent all geographic areas and ownership or executive management of tourism-related industries. The board members advise the Utah Office of Tourism (UOT) on planning, policies, and strategies, as well as trends and opportunities for tourism development that may exist in various areas of the state.

MEMBERS Nathan Rafferty, Board Chair Represents: Ski Industry Film Incentive Committee lnato@skiutah.com Term expires June 30, 2029

Victor Iverson Represents: Utah Association of Counties Film Incentive Committee victor.iverson@washco.gov Term expires June 30, 2029

Lesha Coltharp, Board Vice Chair Represents: Carbon, Daggett, Duchesne, Emery, Grand, and Uintah counties Cooperative Marketing Committee, Chair Film Incentive Committee lcoltharp@uintah.utah.gov Term expires June 30, 2029

Jessica Merrill Represents: Box Elder, Cache, Davis, Rich, and Weber counties Marketing Committee jessicam@discoverdavis.com Term expires June 30, 2029

Kaitlin Eskelson Represents: Morgan, Salt Lake, and Tooele counties Film Incentive Committee keskelson@visitsaltlake.com Term expires June 30, 2027 Joan Hammer Represents: Utah Tourism Industry Association Cooperative Marketing Committee Film Incentive Committee jhammer@boxeldercounty.com Term expires June 30, 2027 70

Jason Murray Represents: Ownership of business, finance, economic policy, or the academic media marketing community Marketing Committee jason@southwestadventuretours.com Term expires June 30, 2027 Graydon Pearson Represents: Lodging Industry Utah Film Incentive Committee graydon.pearson@genhg.com Term expires June 30, 2027

Harold Simpson Represents: Garfield, Kane, Piute, San Juan, and Wayne counties mvsttours2005@yahoo.com Term expires June 30, 2029 Melva Sine Represents: Restaurant Industry msine1952@hotmail.com Term expires June 30, 2027

Jordan Smith Represents: Outdoor Recreation Cooperative Marketing Committee jordan.smith@usu.edu Term expires June 30, 2029 Kevin Smith Represents: Arts and Culture Cooperative Marketing Committee ksmith@tuacahn.org Term expires July 1, 2027

CJ Wade Represents: Motor Vehicle Rental Industry cjwade@stgshuttle.com Term expires June 30, 2027 Jennifer Wesselhoff Represents: Juab, Summit, Utah, and Wasatch counties Marketing Committee Chair Utah Film commission Incentive Committee jennifer@visitparkcity.com Term expires June 30, 2029 Shayne Wittwer Represents: Beaver, Iron, Millard, Sanpete, Sevier, and Washington counties Marketing Committee shaynew@wittwerhospitality.com Term expires June 30, 2027

Women in the Economy Commission U.C.A. 63N-4-804 In the 2022 General Session, the Women in the Economy Commission, originally signed into law in May 2014, became a subcommittee of the Unified Economy Opportunity Commission (UEOC). Both the UEOC and the Women in the Economy Commission were disbanded in the 2025 general session. The UEOC was chaired by Gov. Cox and included senior leaders from Utah’s legislative and executive branches, education, local government, and subject matter experts. The UEOC developed, directed, and coordinated Utah’s statewide and regional economic development strategies by informing policy decisions and building consensus. As a subcommittee of the UEOC, the purpose of the Women in the Economy Commission was to: 1. Increase public and government understanding of the current and future impact and needs of the state’s women in the economy, and how those needs may be most effectively and efficiently met

2. Identify and recommend implementation of specific policies, procedures, and programs to respond to the rights, needs, and impact of women in the economy 3. Facilitate coordination of the functions of public and private entities concerned with women in the economy The subcommittee met several times throughout the year to study, facilitate, evaluate, and report on the status and effectiveness of policies, procedures, and programs that provide services to women or protect their rights. These open public meetings also provided a forum for public comment on issues related to women in the economy. In the 2025 General Session, the subcommittee supported S.B. 17 Services for Department of Defense Civilian Employees, sponsored by Sen. Ann Millner, and H.B. 106 Income Tax Revisions, sponsored by Rep. Kay Chrisofferson.

General Regulatory Sandbox Program Advisory Committee U.C.A. 63N‑16‑104 The General Regulatory Sandbox Program Advisory Committee includes up to 12 members appointed by the Office of Regulatory Relief director. This committee advises the office on the merits of admitting sandbox applicants.

MEMBERS Representative A. Cory Maloy Bill Sponsor

Amanda Slater Assistant Deputy Director | Department of Health and Human Services

Senator Ann Millner Bill Floor Sponsor

Reed Stringham Deputy Commissioner | Utah Insurance Department

Jacob Hart Deputy Director | Utah Department of Commerce David S. Hunt Corporate Counsel | XCR Diagnostics, Inc. KwikClick, Inc., LFTD Partners Inc.

Noella Sudbury Founder and CEO | Rasa Public Benefit Corporation Troy Keller Partner | Dorsey & Whitney LLP

John R. Lund Past Chair | Legal Services Innovation Committee

Rural Opportunity Advisory Committee U TA H C O D E 6 3 N , C H A P T E R 7, PA R T 2 The advisory committee is composed of seven members, appointed by the GOEO executive director. At least five of these members must reside in a rural county. Each member is appointed to serve a four-year term. The advisory committee advises and makes recommendations to the office regarding the awarding of grants and loans under the Rural Opportunity Program.

MEMBERS Brigham Tomco, Committee Chair Wasatch County Jared Nielson Utah County (rural, at-large) Monica Holdaway Cache County Paul Hill Washington County (Hurricane) Kori Ann Edwards Weber County (Hooper) Meghan McFall San Juan County Sylvia Wilkins, Committee Vice Chair Uintah County

World Trade Center at City Creek 60 East South Temple, Suite 300 76 Salt Lake City, Utah 84111-1004

1 801 538 8680 business.utah.gov @BusinessUtah