Corporate Recruitment and International Trade

Corporate Recruitment, International Trade and Diplomacy

The mission of Corporate Recruitment and International Trade and Diplomacy (CRITDO) is to accelerate business growth and job creation through sustainable, cluster-focused domestic and international corporate expansion and relocation, and to strengthen Utah’s international stature through diplomacy and export promotion . CRITDO carries out GOED’s vision through attracting new investors and companies to the state and by helping existing companies expand .

Theresa Foxley

Managing Director

Ancillary CRITDO Programs

Life Science and Technology Tax Credits, U.C.A. 63N-2-8

Life science and technology companies generating new state revenues are eligible for a post-performance refundable tax credit of up to the amount of new state revenues generated over three years . Investors in a Utah life science company are eligible for a non-refundable, post-performance tax credit of up to 35 percent of their investment, paid over three years .

In 2011, GOED awarded four life science companies a total of up to $1 million in tax credits to be distributed over three years . 2014 was the third year to measure economic impact; the new projects associated with the tax credits resulted in the creation of 79 jobs since the inception of the program .

In 2012, GOED awarded ten investors up to $204,750 in post-performance tax credits to be distributed over three years . These ten investors make up $585,000 in direct investment in three life science companies .

Funds for Employee Training

The State Legislature appropriated Job Growth Funds during the 2010 General Session to be used by DWS for workforce development and labor exchange activities . Since the 2010 General Session, the Utah State Legislature has continued

to authorize the use of these funds . Workforce development includes job creation, job retention, and job training .

Alternative Energy Manufacturing Tax Credit, U.C.A. 63N-2-7

As of this date no credits have been issued .

Convention Hotel Legislation, U.C.A. 63N-2–5

As of this date, no credits have been applied for or issued .

Small Business Jobs Tax Credit (New Market Tax Credit Program),

U.C.A. 63N-2-6

The Utah State Legislature enacted the Utah Small Business Jobs Act to attract additional investment in the most severely distressed areas of the state . The act created a tax credit program most commonly referred to as the “Utah New Market Tax Credit Program . ” It uses $50 million raised by venture capital firms that have been designated by the IRS as Community Development Entities (“CDE”) to make investments into small businesses within distressed areas . A prospective CDE applies to the state to be authorized to raise its respective portion of the $50 million . Once approved, the CDE raises its authorized amount by issuing 58 percent income tax credits provided by the state to the investors who invest in each CDE’s respective funds . The tax credits are funded by the state through the Premium Tax surplus .

Once each CDE has raised its authorized portion of the $50 million, it must invest 85 percent of it into eligible small businesses throughout the state with no one business receiving more than $4 million total in investments . To be considered eligible, a business must meet the following criteria: - Be located in a distressed or severely distressed census tract according to the 2010 census - Fit the Small Business Association’s (“SBA”) definition of a small business - Not derive more than 15 percent of its profits from the sale of real estate

Each CDE must invest the funds it raises within 12 months . The investments are then monitored by the state for the next 7 years to ensure compliance and monitor the success of each respective investment .

The program began accepting applications from prospective CDEs on September 2, 2014, and the state received three applications from Advantage Capital, Enhanced Capital, and Stonehenge Capital . Each received authorization to raise 1/3 of the $50 million, resulting in a respective tax credit allocation of $9 .7 million to each CDE in order to entice investments totaling $16 .7 million . The three CDEs have until December 2015 to invest their funds with a six month cure period if they do not meet this deadline . As of September 30, 2015, participating CDEs have invested $23 .8 million of the $50 million amount into 10 small businesses, which are expected to create 235 jobs across the state .