Rural Development

OVERVIEW

The Rural Development Program Mission is to “Unite and support Utah’s rural communities in economic development through coalitions, entrepreneurship, business expansion and infrastructure development.”

Rural Partners

The Governor’s Rural Partnership Board, with representation from business, industry, and local government raises awareness about rural development needs, defines economic barriers and raises these issues with the Governor, Utah Legislature and other state and federal agencies.

GOED as partnered with USU Extension on seminars, workshops and coordinated programs. Topics have included manufacturing, Utah’s Own Program, federal stimulus funds, congressional delegation updates and renewable energy.

GOED’s Rural Development team supports local economic development professionals, rural communities, and organizations such as the Center for Rural Life. Recently, GOED has partnered with the Utah Petroleum Association and the State Energy Office on energy issues.

In addition to the programs listed below, Rural Development facilities assistance through numerous other programs such as local revolving loan funds, Small Business Development Centers, SBA business programs, Utah Science Technology and Research, certified development companies, custom fit training and the Manufacturing Extension Partnership.

Feed Mill in Lynndyl, Utah.

Business and Economic Development Assistance

• Rural Development Grants

Matching funds of up to $10,000 are available to communities to facilitate economic development projects. Grants are awarded as they are received, based on the quality of the project and available funding. The following two projects were

funded during FY 2010: Casino Star Theatre in Gunnison and Business Resource Center Outreach in Beaver and Garfield.

• Enterprise Zones, (63M-1-401)

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 2008 over $8.3 million in tax credits were given, estimated to equal over $70M of business investment in rural Utah.

• Targeted Business Tax Credits, (63M-1-2001)

Companies can receive refundable state tax credits for non-retail businesses in qualifying enterprise zones. Each year the state awards a maximum of $300,000 to companies 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. In FY 2010, GOED did not receive any application for new business projects, but has awarded state income tax credits to the following projects approved in FY 2009: Filter Service Company, Electrical Contractors, San Rafael Veterinary Clinic, Neilson Cement, Palletta Trucking and Badlands Fabrication. • Rural Fast Track (RFT), U.C.A. 63M-1-904

A portion of the IAF is designated for non-retail companies in rural Utah (counties with a population less than 30,000 and average household income less than $60,000) for business expansion and the creation of new high paying jobs.

Rural Fast Track Program Offers FY 2010

County # of Jobs Incentive Investment Carbon 4 $ 96,507 $ 212,364 Duchesne 1 $ 50,000 $ 110,000 Emery 1 $ 31,000 $ 61,350 Juab 2 $ 90,000 $ 229,900 Millard 2 $ 87,000 $ 174,000 San Juan 3 $ 93,000 $ 202,719 Uintah 1 $ 50,000 $ 435,010 Wayne 3 $ 125,933 $ 289,200 Grand Total 17 $ 623,440 $ 1,714,543

Rural Fast Track Program Disbursements FY 2010

County # of Jobs Incentive Investment Beaver 0 $ 50,000 $ 127,275 Carbon 21 $ 270,680 $ 2,904,086 Duchesne 0 $ 127,650 $ 275,920 Emery 0 $ 173,000 $ 428,539 Grand 0 $ 30,316 $ 88,400 Juab 0 $ 149,891 $ 428,975 Millard 0 $ 37,000 $ 74,771 Sanpete 0 $ 138,681 $ 322,058 Grand Total 21 $ 977,218 $ 4,650,023

Brush Resources, Delta, Utah.

Horizon Metals, Nephi, Utah.

• Rural Broadband, Service Fund 63M-1-2301

Established to support economic growth in rural locations by providing post performance cash grants to companies that commit to construct wire line technology for broadband service in rural communities. To date, 47 projects in 14

Counties have extended high speed internet to approximately 10,615 potential subscribers.

For additional information about Rural Development visit www.business.utah.gov or contact Beverly Evans, Director, at bevans@utah.gov or 801-538-8638, or contact Les Prall at lprall@utah.gov or 801-538-8804.