Enterprise Zone Tax Credits

Enterprise Zone Tax Credits NOTICE The Enterprise Zone Tax Credit Program will conclude in 2027. All Enterprise Zone designations have expired, and no new designations will be established. Companies amending their tax filing from previous years have the following options: During the 2026 application period, only Capital Investment and Employee Credit applications will be accepted for the 2023 and 2024 tax years. During the 2027 application period, only Capital Investment and Employee Credit applications will be accepted for the 2024 tax year. Enterprise Zone Tax Credits may be claimed on Utah state income tax forms by eligible businesses locating or expanding in enterprise zones. Incremental Tax Credits for New Jobs Paying Above County Average Wage A maximum of 30 full-time positions per tax year A $750 tax credit for each new full-time position was created above the subsequent taxable year's highest number of full-time positions An additional $500 tax credit if the new position pays at least 125% of the county average monthly nonagricultural payroll wage for the respective industry (determined by the Utah Dept. of Employment Security). If 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 An additional $750 tax credit if the new position is in a business entity that adds value to agricultural commodities through manufacturing or processing An additional tax credit of $200 may be claimed for each new full-time employee position created within the enterprise zone that is filled by an employee who is insured under an employer-sponsored health insurance program if the employer pays at least 50% of the premium cost for the year for which the credit is claimed Capital Investment Tax Credit A tax credit of 25% of the first $200,000 spent on rehabilitating a building that has been vacant for at least two years, including that the building has had or contained no personal property for at least two years, in the period immediately before the rehabilitation, and which is located within an enterprise zone An annual investment tax credit may be claimed in an amount equal to 5% of the first $750,000 qualifying investment in other depreciable property Apply Online for the Enterprise Zone Tax Credits Application Portals and Resources: Enterprise Zone Tax Credit – Employee Credit Application for 2023, and 2024 Enterprise Zone Tax Credit – Capital Investment Credit Application for 2023, and 2024 Enterprise Zone Expiration and Contact List Utah Enterprise Zones Map Frequently Asked Questions (FAQ) General Limitations and FAQ: Non-refundable tax credits are available to eligible businesses in designated enterprise zones from the start of the tax year in which the designation is made Unused credits may be carried over for three years Businesses closing operations in one rural area to locate in another rural area may not claim tax credits under this program if reasonably expected to diminish employment in the part of the state where the operation was previously located, except in first or second class Construction jobs are not eligible for tax credits Retail businesses and public utilities are not eligible to claim tax credits Answers to Frequently Asked Questions are general in nature and may change depending on the circumstances. Neither the Utah State Tax Commission nor GOED prepare returns for taxpayers and cannot advise taxpayers to the extent we are not their accountants or legal representatives. Please contact James Dixon ( [email protected] or download this PDF for more information about applying for Enterprise Zone Tax Credits and Job Creation Tax Credits.