d . Targeted Business Tax Credit

Targeted Business Tax Credit

Purpose

U.C.A. 63N-2-301

The purpose of the Targeted Business Tax Credit (TBTC) program is to encourage private investment and the creation of jobs in rural Utah counties with populations less than 25,000 . As return on investment takes more time in remote rural economies than it does along the Wasatch Front, the TBTC encourages development in small rural counties .

Key Initiatives

The Office of Rural Development worked with Rep. Becky Edwards and Sen . Brian Shiozowa during the 2017 Legislative Session to update TBTC language (H .B . 416) . The updated TBTC application process creates competition for “shovel ready” projects that make significant capital investment and create jobs in rural counties with populations less than 25,000 . When approved TBTC projects are complete, the additional TBTC tax credit application process will reduce inefficiencies in the system .

Data

In CY 2016, GOED approved four applications and each were allocated the $100,000 cap. GOED will continue to report on future allocations as we implement H .B . 416 .

Challenges and Achievements

The statutory changes implemented in H .B . 416 gave GOED the authority to determine eligibility and issue TBTC certificates. The legislation also simplified a complicated calculation for TBTC eligibility by expanding eligible counties to include all those with populations less than 25,000 .

Contact

Linda Clark Gillmor

Director 801-538-8804 lgillmor@utah.gov