Targeted Business Tax Credit

U.C.A. 63N-2-301 The Targeted Business Tax Credit (TBTC) program encourages private investment and the creation of jobs in rural Utah counties with populations less than 25,000. The Governor’s Office of Economic Development may award up to $300,000 to businesses with eligible Community Investment Projects (CIP). The awards to qualifying businesses come in the form of refundable tax credits, and may not exceed $100,000 per business.

Initiatives The Office of Rural Development works with county economic development directors to identify businesses that are ready to make significant capital investments of at least $100,000, and create significant new numbers of jobs. This post-performance tax credit is given to the qualifying business after contracted benchmarks and commitments are completed. Challenges and Achievements This program can be a useful tool in reducing investment risk in counties where it may take longer to show a return on investment. It’s a program that needs renewed marketing and emphasis, and perhaps an expansion of funding to attract more businesses to apply. Because the tax credit is claimed based on an open completion time of up to three years, new tax credits are not always generated year to year.

Outcomes No new Targeted Business Tax Credits were allotted in FY 2018, but one tax credit of $50,000 was claimed by a previously approved rural business for its new capital investments and new full-time employment.

Contact

James A. Dixon Rural Programs Administrator 801-538-8687 jdixon@utah.gov