Tax Credits

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The following tax credits may be claimed by eligible businesses locating or expanding in enterprise zones on state income tax forms:

JOB CREATION TAX CREDITS (may claim for up to thirty full time positions per tax year):

1. A $750 tax credit for each new full time position filled for at least six months during the tax year.
2. An additional $500 tax credit if the new position pays at least 125% of the county average monthly wage for the respective industry (determined by the Utah Dept. of Employment Security). In the event this information is not available for the respective industry, the position must pay at least 125% of the total average monthly wage in the county.
3. An additional $750 tax credit if the new position is in a business which adds value to agricultural commodities through manufacturing or processing.
4. An additional $200 tax credit, for two consecutive years, for each new employee insured under an employer sponsored health insurance program if the employer pays at least 50% of the premium.

OTHER TAX CREDITS:

1. A tax credit (not to exceed $100,000) of 50% of the value of a cash contribution to a 501(c)(3) private nonprofit corporation engaged primarily in community and economic development, and is accredited by the Utah Rural Development Council.
2. A tax credit of 25% of the first $200,000 spent on rehabilitating a building which has been vacant for at least two years, and which is located within an enterprise zone.
3. An annual investment tax credit of 10% of the first $250,000 in investment, and 5% of the next $1,000,000 qualifying investment in plant, equipment, or other depreciable property.

For more information about tax credits available under this program, contact Kim Ferrell, Utah State Tax Commission, Corporate Auditing, 210 North 1950 West, Salt Lake City, Utah 84134; Telephone (801) 297-4634, e-mail kferrell@utah.gov.