e . Recycling Zone

Recycling Zone

Purpose

U.C.A. 63N-2-401

The Recycling Market Development Zone (RMDZ) is established to encourage businesses to use renewable products and recycle materials that would otherwise go to landfills. Participating businesses receive tax credits on purchases of equipment used in the manufacturing or recycling of renewables .

The RMDZ may be considered under-utilized as a business incentive and as a waste stream diversion . In 2017, some cities and counties rediscovered the benefits of Recycling Zone tax credits for businesses involved in renewables manufacturing and recycling . They are re-applying for the zone area designation not only as an incentive to local businesses, but also as part of their waste management master plans .

Key Initiatives

At the beginning of FY 2017, the Office of Rural Development (ORD) organized and updated the information on past claims. This included a compilation of five years of claims, a report on the average numbers of claims per year, and the value of claimed tax credits . ORD also conducted a survey of companies who are regular users of the Recycling Zone tax credit . The survey results were used to answer questions from the legislature about the program . The survey revealed that in one year, 164 jobs were created or retained, $6.5 million dollars in personal incomes at an average annual salary of approximately $40,000 were created or retained, and approximately 3 .5 million tons of waste were diverted from Utah landfills at a cost-per-ton in tax credits of $0.38.

Challenges and Achievements

The RMDZ incentive was reviewed during the 2017 legislative session . ORD assisted both the legislature and businesses with information on the RMDZ and metrics . ORD encourages cities and counties to use the RMDZ tax credit as an economic development and recruitment tool, as well as a part of their waste management plans . ORD will continue to review renewal of RMDZ applications as they are submitted by cities and counties .

Data

Recycling Market Development Zone CY 2015 CY 2016 Number of tax credits issued 19 10

Private capital investment: Total tax credits issued: $36,067,200 $6,925,200

$1,835,600 $358,800

Contact

James A. Dixon

Rural Outreach Specialist 801-538-8687 jdixon@utah.gov