Area Development
{{RELATEDLINKS}}Economic Development Tax Increment Finance (EDTIF):
The Economic Development Tax Increment Finance (EDTIF) assists relocation and expansion of both businesses new to Utah and companies who are already located in Utah who are looking at major new expansions that will create significant new job development. Economic development zones are created for commercial, industrial, manufacturing, business parks, research parks or other appropriate uses in a community-approved master plan. Under the EDTIF incentive process a commitment from the local government entity to provide local incentives must be a part of the package, then a post-performance tax credit incentive by the state can be awarded. Post-performance tax credits are based on new state revenues (corporate income tax, wage/payroll tax and Utah sales or use tax paid) generated by the projects, and are given to the companies that create new high-paying jobs and create economic growth within the development zones.

Industrial Assistance Fund (IAF):
IAF like the EDTIF has similar requirements for new jobs and capital investment in Utah. The Incentive is based on a post-performance per job or capital investment and can payout appropriated post-performance cash while the ETIF issues tax credits. Consequently, IAF awards are substantially smaller and less common than ETIF incentives.

(a) Urban

(b) Rural

(c) Corporate

Specialty Incentives:

Industrial development bonds:
Municipalities and counties issue industrial development bonds on behalf of private companies to achieve greater industrial development of manufacturing facilities in the state. Interest rates are negotiated between the bond purchaser and the borrowing company. Term in years of bond issues is not limited by the state. Ninety-five percent of bond proceeds must be used for manufacturing facilities. They cannot be used to refinance debt, inventory or operating capital.

Custom Fit Training:

Incumbent Worker Training
Utah Department of Workforce Services (DWS) utilizes a computerized job-matching system that quickly screens applicants to ensure that they meet the qualifications set by a hiring company. Over 16,000 active applicants are presently registered with DWS. Space is available at DWS offices all around the state for companies to interview applicants, or Workforce Services employees can assist personnel offices on the company premises. Special programs such as Affirmative Action, Targeted Job Tax Credits, Veterans Programs and incumbent worker training are also available.

Short-Term Intensive Training (STIT):
STIT programs are customized and designed to meet full-time job openings. Programs are usually less than one year in length, and are designed to meet the specific training needs of a company. They match company needs with people seeking employment. Although potential employers/employees must pay tuition to participate, STIT can provide qualified employees from which a company can hire. STIT gives the option of training at a 66 percent discount of normal costs. State funding for this program is distributed to the following: Weber State University, Southern Utah State University, Salt Lake University, Utah Valley University and the College of Eastern Utah.

Workforce Investment Act (WIA):
The federally funded Workforce Investment Act provides funds to prepare unskilled youth and adults for jobs in private industry. It provides job training for the economically disadvantaged, dislocated, and others who face significant barriers to employment. Activities funded by the WIA may include on-the-job training, classroom training and support services (such as transportation, tools, and job search). Fifty percent of wages can be paid up to 1,000 hours of training, excluding holidays, sick leave and vacation.

Foreign-trade zones:
Utah has one foreign-trade zone that is located in an industrial/business park near the Salt Lake City International Airport. This zone operates outside the U.S. Customs Department's oversight, allowing duties on imported goods to be deferred until they leave the zone. The state has recently added EB 5.

Recycling market development zone program:
The act passed by the Utah State Legislature provides tax credits for companies residing in the zone and collecting, processing and handling recycled materials or use them in their manufacturing processes or composting.

Utah State Contact:
Governor’s Office of Economic Development
60 East South Temple, 3rd Floor
Salt Lake City, Utah 84111

Incentive and tax information is provided to Area Development by each state's economic development or commerce agency for information purposes only and is subject to revision at any time by the state government. Please contact the state agency directly for full requirements and offerings.