Rural Development

OVERVIEW

U.C.A. 63M-1-1601–1606

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 63M-1-1606, 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, Workforce Services and Economic Development Legislative Interim Committee and other state and federal agencies

GOED’s Rural Development team supports local economic development professionals, rural communities and organizations such as the Center for Rural Life

GOED has partnered with the Utah State University Extension on seminars, workshops and coordinated programs Topics have included manufacturing, the Utah’s Own program, federal stimulus funds, congressional delegation updates and renewable energy

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

Box Elder County Courthouse

Business and Economic Develop- Rural Fast Track Program FY 2014 ment Assistance County Grant Amount Private Investment

• Rural Fast Track (RFT) (U.C.A. Beaver $50,000 $396,000 63M-1-904) Carbon $176,114 $491,428

A portion of the Industrial Assis- Daggett $25,000 $73,775 tance Fund is designated for non- Emery $88,400 $228,730 retail companies in rural Utah Garfield $125,930 $444,587 counties with a population less Iron $50,000 $133,896 than 30,000 and average house- Juab $44,168 $88,337 hold income less than $60,000 for Millard $100,000 $863,000 business expansion and the cre- Morgan $13,500 $27,000 ation of new high-paying jobs San Juan $192,622 $3,513,203 Sanpete $180,000 $12,584,062

The RFT grant can also be used in Sevier $50,000 $126,921 rural counties where county leiWayne $25,000 $175,000 sure and hospitality employment SOURCE: GOED is 125 percent of the State’s 9 5 percent average In these counties Fast Track Grants can now be used for hospitality businesses • Enterprise Zones (U.C.A. 63M-1-401–415)

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, more than

Brigham City Main Street

Downtown Logan, Utah

$9.3 million in tax credits were awarded, estimated to equal more than $80 million of business investment in rural Utah. In 2013, more than $12.3 million in credits were awarded coupled with significant private business investment in Rural Utah

• Recycling Market Development Zones (U.C.A. 63M-1-1101)

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 • Targeted Business Tax Credits (U.C.A. 63M-1-501–504)

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. In FY2012, $79,000 was paid and in FY2013 $362,000. • Business Expansion and Retention Program (BEAR Program)(U.C.A. 63M1-903(1)(c))

The Business Expansion and Retention Program is designed to assist in growing new and existing rural businesses, influence rural job creation, and increase

Downtown Brigham City, Utah

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

• Economic Opportunity Grants (U.C.A. 63M-1-909)

Matching funds are available 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 • Rural Disadvantaged Communities (U.C.A. 63M-1-2001–2006)

This program has not been funded in recent years

For additional information about Rural Development visit www.business.utah.gov or contact Delynn Fielding, Director, at dfielding@utah.gov or 801-538-8804