Corporate Recruitment and Incentives
OVERVIEW The mission of Corporate Recruitment and Incentives (CRI) is to “increase the number of quality jobs in Utah by helping existing companies expand and by recruiting new companies to the State.” Financial incentives are available for business relocation and expansion for select companies that create new, high-paying jobs to help improve the standard of living, increase the tax base, attract and retain top-level management, and diversify the state economy. Incentives are offered as either tax credits or grants. The incentive amount and duration is decided by the GOED board and executive director based on statutory guidelines and evaluation criteria including the financial strength of the company, the number and salary of jobs created, amount of new state tax revenue, long-term capital investment, competition with other locations and whether the company is a headquarters or in a targeted cluster. Incentives are based on the following “three pillars of success and sustainability”: 1. Post-performance — Incentives are disbursed after the company has met contractual performance benchmarks, such as job creation and payment of new state taxes. 2. Single Taxpayer — Incentive amounts are based on new state taxes generated by the project. 3. Competition — Incentives must make Utah competitive with other locations.
Economic Development Tax Increment Financing (EDTIF), U.C.A 63M-1-2400 A post-performance refundable tax credit up to 30% of new state revenues (state corporate/partnership income, sales and withholding taxes) over the life of the project (up to 20 years). Renewable Energy Development Incentive (REDI), U.C.A. 63M-1-2800 A post-performance refundable tax credit for up to 100% of new state revenues (state corporate/partnership income, sales and withholding taxes) over the life of the project (up to 20 years) for renewable/alternative energy generation and related manufacturing.
Governor’s Office of Economic Development • Annual Report • www.business.utah.gov
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