Rural Development

OVERVIEW

U.C.A. 63N-4-101

The Rural Development program’s mission is to unite and support Utah’s rural communities in economic development through coalitions, entrepreneurship, business expansion and infrastructure development . This overview is for information purposes only . The Office of Rural Development formal report, pursuant to U .C .A . 63N-4-101, will be provided directly to the legislature, according to statute .

Rural Development Office

The Rural Development office staff supports the Governor’s Rural Partnership Board (GRPB) . This volunteer board has representation from business, industry and local government and its mission is to raise awareness about rural development needs and define economic barriers . With the input from the GRPB, the rural office provides a detailed verbal and written report on rural issues to the Governor .

GOED’s Rural Development team supports rural economic development professionals, and communities directly through programs listed below, and collaborates with other government and private organizations in order to provide increased support for economic development in rural Utah .

GOED reps along with Lt. Governor Spencer Cox visit Tribal Chapters in San Juan.

Business and Economic Development Assistance

• Rural Fast Track (RFT)

U.C.A. 63N-3-104

A portion of the Industrial Assistance Fund is designated for nonretail companies in rural Utah counties of the 4th, 5th and 6th class (population under 31,000) for business expansion and the creation of new high-paying jobs . It is also available in 3rd class counties within cities of less than 20,000 population and less than $70,000 median household income .

The RFT grant can also be used in rural counties where county leisure and hospitality employment is 125 percent of the State’s 9 .5 percent average . In these counties Fast Track Grants could now be used for hospitality businesses .

Rural Fast Track Program FY 2015

County

Box Elder Carbon Daggett Emery Garfield Iron Juab Millard Morgan Rich San Juan Sanpete Sevier

Grant Amount Private Investment

$169,146.00 $514,690.00 $10,766.00 $153,000.00 $20,827.00 $41,745.00 $69,763.00 $207,527.00 $50,000.00 $218,431.00 $50,000.00 $112,715.00 $50,000.00 $125,000.00 $77,500.00 $402,000.00 $50,000.00 $525,000.00 $50,000.00 $251,974.00 $75,000.00 $391,726.00 $161,149.00 $420,399.00 $50,000.00 $193,500.00

Wasatch $50,000.00 $595,095.00

Wayne $138,000.00 $1,100,423.00 SOURCE: GOED

Cedar City, Utah

• Enterprise Zones

U.C.A 63N-2-201

Businesses within an Enterprise Zone can claim state income tax credits for investing in plant and depreciable machinery and equipment, creating new, above average wage jobs, and the rehabilitation of older facilities . In 2012, approximately $9million in tax credits were awarded, estimated to equal more than $80 million of business investment in rural Utah . In 2013, approximately $12million in credits were awarded coupled with significant private business investment in Rural Utah . The tax credits awarded for 2014 are estimated to be just over $4 million, and as of the end of July 31, 2015, the 2015 tax credits awarded are just over $7 million . • Recycling Market Development Zones

U.C.A 63N-2-401

Businesses within a Recycling Zone can claim state income tax credits for using recycled materials in their manufacturing processes to create new products for sale . It also benefits business or individuals that collect, process or distribute recycled materials . Composting is considered to be eligible recycling operation .

This program is available to all Utah counties .

Vernal City, Utah

• Targeted Business Tax Credits

U.C.A. 63N-2-301

Companies can receive refundable state income tax credits for non-retail businesses in qualifying enterprise zones . Each year, GOED awards a maximum of $300,000 per company based on projected investment and payroll . If projections are reached, the companies awarded the targeted business tax credits will receive tax credits in each of the next three years . A total of $2 .5 million has been paid since the inception of the tax credit in FY2005 . • Business Expansion and Retention Program (BEAR Program)

U.C.A. 63N-3-103

The Business Expansion and Retention Program is designed to assist in growing new and existing rural businesses, influence rural job creation, and increase economic diversity in rural regions by enhancing the level of technical services provided . The BEAR initiative is available to rural county economic development offices, Business Resource Centers, Small Business Development Centers and formal partnership consortiums directly involving these entities within the state for business training and skill development .

BEAR actively reaches out to rural businesses and makes the connection between the company and needed existing resources from all agencies, higher education and other resources . BEAR is funded by the IAF . • Economic Opportunity Grants

U.C.A. 63N-3-109

Matching funds are available through the IAF to communities to facilitate community and economic development projects . Grants are awarded as they are received, based on the quality of the project and available funding .

For additional information about Rural Development visit www.business.utah.gov or contact Linda Gillmor, Director, at lgillmor@utah.gov or 801-538-8804