Utah is known for its thriving economy, business-friendly environment, and robust infrastructure.  The state offers a variety of incentives to attract businesses and promote job creation, particularly in industries such as technology, manufacturing, energy, and life sciences.  Below are some of the key incentives available for businesses in Utah.

Utah Industrial Assistance Fund (IAF)

Overview

The Utah IAF provides financial assistance to businesses that are investing in job creation and economic development projects.  The fund is designed to support companies expanding their operations or relocating to Utah.

Eligibility

• The business must create a specified number of new jobs within a set time frame.

• The business must meet certain wage and investment criteria.

• The project must have a significant economic impact on the state, either through job creation or capital investment.

Incentive Value

• Financial assistance can range from $500,000 to $5 million, depending on the project size and the number of jobs created.

• The amount of assistance is negotiated based on the business’s impact on the local economy.

Application Process

Businesses must apply through the Governor’s Office of Economic Development (GOED), providing detailed information about the project, job creation plans, and capital investment.

Utah Economic Development Tax Increment Financing (EDTIF)

Overview

The EDTIF program incentivizes businesses to create high-paying jobs in Utah.  It provides a refundable tax credit based on the additional state income tax revenue generated by the new jobs.

Eligibility

• The business must create a minimum number of high-paying jobs within a specific period.

• The business must meet certain wage and benefits thresholds, typically higher than the state’s average wage.

Incentive Value

• Tax credits can range from 10% to 30% of the new state income taxes paid by employees, depending on the project size and economic impact.

• The credits are refundable and can be applied for up to 20 years.

Application Process

Businesses must apply through GOED, submitting a business plan, job creation projections, and economic impact analysis.

Utah Motion Picture Incentive Fund

Overview

The Utah Motion Picture Incentive Fund provides financial support to the film, television, and digital media industries.  This program offers rebates to companies that produce qualifying films and digital media projects in Utah.

Eligibility

• The business must be involved in film, television, or digital media production.

• The production must take place in Utah, with a minimum amount of spending occurring within the state.

Incentive Value

• Rebates are available for up to 25% of qualified production expenses.

• Additional incentives are available for certain types of projects, such as those with significant Utah content or involving Utah residents.

Application Process

Businesses must apply through the Utah Film Commission, submitting a production budget, schedule, and other required documentation.

Utah Research and Development (R&D) Tax Credit

Overview

The Utah R&D Tax Credit provides financial incentives to businesses that engage in research and development activities in Utah.  This program is designed to foster innovation and technological advancement across the state.

Eligibility

• The business must conduct R&D activities in Utah that contribute to technological advancements or process improvements.

• R&D must be related to the development of new products, services, or technologies.

Incentive Value

• The credit is worth 6.5% of eligible R&D expenditures.

• The credit is available for both small and large businesses that engage in qualified research activities in the state.

Application Process

Businesses must apply to the Utah State Tax Commission (STC), submitting documentation of their R&D activities and associated expenditures.

Utah Life Science Tax Credit

Overview

The Utah Life Science Tax Credit provides a tax incentive to companies involved in the life sciences industry, particularly those working on research, development, and commercialization of life science technologies.

Eligibility

• The business must be engaged in the life sciences industry, including biotechnology, medical devices, and pharmaceuticals.

• The business must be located in Utah and involved in R&D activities related to life sciences technologies.

Incentive Value

• The credit is up to 5% of the business’s eligible expenditures on life sciences-related R&D.

• The total amount of credit varies based on the size of the business and its R&D investment.

Application Process

Businesses must apply to the Utah Department of Workforce Services, providing information on R&D projects and expenditures.

Utah Energy Incentive Program

Overview

The Utah Energy Incentive Program offers financial assistance and tax credits to businesses that invest in energy-efficient technologies or renewable energy projects.  The program aims to support sustainable business practices and reduce energy consumption.

Eligibility

• The business must invest in energy-efficient or renewable energy systems.

• Eligible projects may include solar, wind, geothermal, or energy-efficient building improvements.

Incentive Value

• Businesses can receive tax credits for up to 25% of the cost of qualifying energy projects.

• The maximum credit amount is typically $250,000, depending on the scope of the project.

Application Process

Businesses must apply to GOED, providing a detailed proposal and supporting documentation for their energy project.

Utah Sales and Use Tax Exemption for Manufacturing

Overview

Utah offers a sales and use tax exemption for machinery and equipment used in manufacturing, research and development, and certain other business operations.  This incentive helps to lower the cost of investing in production infrastructure.

Eligibility

• The business must be engaged in manufacturing, research and development, or similar activities within Utah.

• The machinery and equipment must be used directly in the production or research process.

Incentive Value

• Businesses are exempt from paying sales and use tax on qualifying purchases, including machinery, equipment, and raw materials.

• The exemption applies to up to 100% of the tax for qualifying purchases.

Application Process

Businesses must apply to STC, submitting documentation of their machinery and equipment purchases and their intended use in manufacturing or R&D activities.

Utah State Jobs Tax Credit

Overview

The Utah State Jobs Tax Credit provides a tax incentive to businesses that create a significant number of new jobs in the state.  This program aims to promote job growth in areas of high unemployment or underdevelopment.

Eligibility

• The business must create at least 25 new full-time jobs in Utah.

• The new jobs must meet certain wage and benefits standards, often higher than the county’s average wage.

• The business must meet certain investment requirements.

Incentive Value

• Businesses can receive tax credits worth up to $2,000 per job, depending on the wage level and location of the project.

• The credits are available for up to 5 years, with annual claims.

Application Process

Businesses must apply to GOED, providing documentation on job creation, wage rates, and the business’s operational impact.