reglab/statecodes huggingface dataset:
2023 Utah Code › Title 63N - Economic Opportunity Act › Chapter 2 - Tax Credit Incentives for Economic Development › Part 1 - Economic Development Tax Increment Financing › Section 103 - Definitions.

Effective 5/4/2022
63N-2-103.
Definitions.
As used in this part:
(1)
(a) "Business entity" means a person that enters into a written agreement with the office to initiate a new commercial project in Utah that will qualify the person to receive a tax credit under Section 59-7-614.2 or 59-10-1107.
(b) With respect to a tax credit authorized by the office in accordance with Subsection 63N-2-104.3(2), "business entity" includes a nonprofit entity.
(2) "Commercial or industrial zone" means an area zoned agricultural, commercial, industrial, manufacturing, business park, research park, or other appropriate business related use in a general plan that contemplates future growth.
(3) "Development zone" means an economic development zone created under Section 63N-2-104.
(4) "Local government entity" means a county, city, town, or metro township.
(5) "New commercial project" means an economic development opportunity that:
(a) involves a targeted industry;
(b) is located within:
(i) a county of the third, fourth, fifth, or sixth class; or
(ii) a municipality that has a population of 10,000 or less and the municipality is located within a county of the second class; or
(c) involves an economic development opportunity that the commission determines to be eligible for a tax credit under this part.
(6) "Remote work opportunity" means a new commercial project that:
(a) does not require a physical office in the state where employees associated with the new commercial project are required to work; and
(b) requires employees associated with the new commercial project to:
(i) work remotely from a location within the state; and
(ii) maintain residency in the state.
(7) "Significant capital investment" means an investment in capital or fixed assets, which may include real property, personal property, and other fixtures related to a new commercial project that represents an expansion of existing operations in the state or that increases the business entity's existing workforce in the state.
(8) "Tax credit" means an economic development tax credit created by Section 59-7-614.2 or 59-10-1107.
(9) "Tax credit amount" means the amount the office lists as a tax credit on a tax credit certificate for a taxable year.
(10) "Tax credit certificate" means a certificate issued by the office that:
(a) lists the name of the business entity to which the office authorizes a tax credit;
(b) lists the business entity's taxpayer identification number;
(c) lists the amount of tax credit that the office authorizes the business entity for the taxable year; and
(d) may include other information as determined by the office.
(11) "Written agreement" means a written agreement entered into between the office and a business entity under Section 63N-2-104.2.
Amended by Chapter 200, 2022 General Session
2023 Utah Code › Title 63N - Economic Opportunity Act › Chapter 2 - Tax Credit Incentives for Economic Development › Part 1 - Economic Development Tax Increment Financing › Section 104 - Creation of economic development zones -- Tax credits -- Assignment of tax credit.

Effective 7/1/2022
63N-2-104.
Creation of economic development zones -- Tax credits -- Assignment of tax credit.
(1) The office may create an economic development zone in the state if the following requirements are satisfied:
(a) the area is located within a commercial or industrial zone;
(b) the local government entity having jurisdiction over the area supports the creation of the development zone; and
(c) the local government entity described in Subsection (1)(b) provides or commits to provide local incentives within the area in accordance with the local government entity's approved incentive policy.
(2) A local government entity may, for the purpose of incentivizing new commercial projects within the local government entity's boundaries, create an economic development zone if the following requirements are satisfied:
(a) the area is located:
(i) within a commercial or industrial zone; and
(ii) within the geographic boundaries of the local government entity;
(b) the local government entity adopts a long-term plan that addresses the following planning elements within the area:
(i) transportation and infrastructure;
(ii) workforce development; and
(iii) housing needs; and
(c) the office approves the local government entity's request to create the development zone.
Amended by Chapter 200, 2022 General Session
Amended by Chapter 362, 2022 General Session
2023 Utah Code › Title 63N - Economic Opportunity Act › Chapter 2 - Tax Credit Incentives for Economic Development › Part 1 - Economic Development Tax Increment Financing › Section 104.1 - Eligibility for tax credit -- Economic impact study.

Effective 7/1/2022
63N-2-104.1.
Eligibility for tax credit -- Economic impact study.
(1) The office shall certify a business entity's eligibility for a tax credit as provided in this section.
(2) A business entity is eligible to receive a tax credit for a new commercial project if:
(a) the new commercial project:
(i)
(A) is located and provides direct investment within the geographic boundaries of a development zone; or
(B) creates a remote work opportunity;
(ii) includes the creation of high paying jobs in the state, significant capital investment in the state, or significant purchases from vendors, contractors, or service providers in the state, or a combination of these three economic factors; and
(iii) generates new state revenues; and
(b) the business entity has not claimed a High Cost Infrastructure Development Tax Credit under Section 79-6-603 for the same new commercial project, if the new commercial project is located within a county of the first or second class.
(3) The office shall conduct a study of the economic impacts associated with a new commercial project to determine whether a business entity meets the requirements of Subsection (2).
(4) In determining whether a new commercial project meets the requirements of Subsection (2)(a)(ii), the office may attribute an incremental job or a high paying job to a new commercial project regardless of whether the job is performed in person, within a development zone, or remotely from elsewhere in the state.
Enacted by Chapter 200, 2022 General Session
Amended by Chapter 362, 2022 General Session, (Coordination Clause)
2023 Utah Code › Title 63N - Economic Opportunity Act › Chapter 2 - Tax Credit Incentives for Economic Development › Part 1 - Economic Development Tax Increment Financing › Section 104.3 - Limitations on tax credit amount.

Effective 5/3/2023
63N-2-104.3.
Limitations on tax credit amount.
(1) Except as provided in Subsection (2)(a), for a new commercial project that is located within the boundary of a county of the first or second class, the office may not authorize a tax credit that exceeds:
(a) 50% of the new state revenues from the new commercial project in any given year;
(b) 30% of the new state revenues from the new commercial project over a period of up to 20 years; or
(c) 35% of the new state revenues from the new commercial project over a period of up to 20 years, if:
(i) the new commercial project brings 2,500 or more new incremental jobs to the state;
(ii) the amount of capital expenditures associated with the new commercial project is $1,000,000,000 or more; and
(iii) the commission approves the tax credit.
(2) If the office authorizes a tax credit for a new commercial project located within the boundary of:
(a) a municipality with a population of 10,000 or less located within a county of the second class and that is experiencing economic hardship as determined by the office, the office may authorize a tax credit of up to 50% of new state revenues from the new commercial project over a period of up to 20 years;
(b) a county of the third class, the office may authorize a tax credit of up to 50% of new state revenues from the new commercial project over a period of up to 20 years; and
(c) a county of the fourth, fifth, or sixth class, the office may authorize a tax credit of 50% of new state revenues from the new commercial project over a period of up to 20 years.
Amended by Chapter 499, 2023 General Session
2023 Utah Code › Title 63N - Economic Opportunity Act › Chapter 2 - Tax Credit Incentives for Economic Development › Part 1 - Economic Development Tax Increment Financing › Section 106 - Reports -- Posting monthly and annual reports -- Audit and study of tax credits.

Effective 7/1/2021
63N-2-106.
Reports -- Posting monthly and annual reports -- Audit and study of tax credits.
(1) The office shall include the following information in the annual written report described in Section 63N-1a-306:
(a) the office's success in attracting new commercial projects to development zones under this part and the corresponding increase in new incremental jobs;
(b) how many new incremental jobs and high paying jobs are employees of a company that received tax credits under this part, including the number of employees who work for a third-party rather than directly for a company, receiving the tax credits under this part;
(c) the estimated amount of tax credit commitments made by the office and the period of time over which tax credits will be paid;
(d) the economic impact on the state from new state revenues and the provision of tax credits under this part;
(e) the estimated costs and economic benefits of the tax credit commitments made by the office;
(f) the actual costs and economic benefits of the tax credit commitments made by the office; and
(g) tax credit commitments made by the office, with the associated calculation.
(2) Each month, the office shall post on its website and on a state website:
(a) the new tax credit commitments made by the office during the previous month; and
(b) the estimated costs and economic benefits of those tax credit commitments.
(3)
(a) On or before November 1, 2014, and every three years after November 1, 2014, the office shall:
(i) conduct an audit of the tax credits allowed under Section 63N-2-105;
(ii) study the tax credits allowed under Section 63N-2-105; and
(iii) make recommendations concerning whether the tax credits should be continued, modified, or repealed.
(b) The audit shall include an evaluation of:
(i) the cost of the tax credits;
(ii) the purposes and effectiveness of the tax credits;
(iii) the extent to which the state benefits from the tax credits; and
(iv) the state's return on investment under this part measured by new state revenues, compared with the costs of tax credits provided and GOED's expenses in administering this part.
(c) The office shall provide the results of the audit described in this Subsection (3):
(i) in the written annual report described in Subsection (1); and
(ii) as part of the reviews described in Sections 59-7-159 and 59-10-137.
Amended by Chapter 282, 2021 General Session
2023 Utah Code › Title 63N - Economic Opportunity Act › Chapter 2 - Tax Credit Incentives for Economic Development › Part 1 - Economic Development Tax Increment Financing › Section 107 - Reports of new state revenues, partial rebates, and tax credits.

Effective 5/4/2022
63N-2-107.
Reports of new state revenues, partial rebates, and tax credits.
(1) Before October 1 of each year, the office shall submit a report to the Governor's Office of Planning and Budget, the Office of the Legislative Fiscal Analyst, and the Division of Finance identifying:
(a)
(i) the total estimated amount of new state revenues created from new commercial projects;
(ii) the estimated amount of new state revenues from new commercial projects that will be generated from:
(A) sales tax;
(B) income tax; and
(C) corporate franchise and income tax; and
(iii) the minimum number of new incremental jobs and high paying jobs that will be created before any tax credit is awarded; and
(b) the total estimated amount of tax credits that the office projects that business entities will qualify to claim under this part.
(2) By the first business day of each month, the office shall submit a report to the Governor's Office of Planning and Budget, the Office of the Legislative Fiscal Analyst, and the Division of Finance identifying:
(a) each new written agreement that the office entered into since the last report;
(b) the estimated amount of new state revenues that will be generated under each written agreement described in Subsection (2)(a);
(c) the estimated maximum amount of tax credits that a business entity could qualify for under each written agreement described in Subsection (2)(a); and
(d) the minimum number of new incremental jobs and high paying jobs that will be created before any tax credit is awarded.
(3) At the reasonable request of the Governor's Office of Planning and Budget, the Office of the Legislative Fiscal Analyst, or the Division of Finance, the office shall provide additional information about the tax credit, new incremental jobs and high paying jobs, costs, and economic benefits related to this part, if the information is part of a public record as defined in Section 63G-2-103.
(4) By June 30, the office shall submit to the Economic Development and Workforce Services Interim Committee, the Business, Economic Development, and Labor Appropriations Subcommittee, and the governor, a written report that provides an overview of the implementation and efficacy of the statewide economic development strategy, including an analysis of the extent to which the office's programs are aligned with the prevailing economic conditions expected in the next fiscal year.
Amended by Chapter 200, 2022 General Session
2023 Utah Code › Title 63N - Economic Opportunity Act › Chapter 2 - Tax Credit Incentives for Economic Development › Part 1 - Economic Development Tax Increment Financing › Section 109 - Payment of partial rebates.

Effective 5/10/2016
63N-2-109.
Payment of partial rebates.
(1) As used in this section:
(a) "Account" means the Economic Incentive Restricted Account created in Subsection (2).
(b) "Partial rebate" means an agreement between the office and a business entity under which the state agrees to pay back to the business entity a portion of new state revenue generated by a business entity's new commercial project.
(2)
(a) There is created a restricted account in the General Fund known as the Economic Incentive Restricted Account.
(b) The account shall consist of money transferred into the account by the Division of Finance from the General Fund as provided in this section.
(c) The Division of Finance shall make payments from the account as required by this section.
(3) The Division of Finance shall make partial rebate payments due under an agreement initially entered into by the office before May 5, 2008, as provided in this section.
(4)
(a) Each business entity seeking a partial rebate shall follow the procedures and requirements of this Subsection (4) to obtain a partial rebate.
(b) Within 90 days of the end of each calendar year, a business entity seeking a partial rebate shall:
(i) provide the office with documentation of the new state revenue that the business entity generated during the preceding calendar year;
(ii) provide the office with a document that expressly directs and authorizes the State Tax Commission to disclose to the office the business entity's returns and other information that would otherwise be subject to confidentiality under Section 59-1-403 or Section 6103, Internal Revenue Code; and
(iii) ensure that the documentation includes:
(A) the types of taxes and corresponding amounts of taxes paid directly to the State Tax Commission; and
(B) the sales taxes paid to Utah vendors and suppliers that were indirectly paid to the State Tax Commission.
(c) The office shall:
(i) audit or review the documentation for accuracy;
(ii) based on the office's analysis of the documentation, determine the amount of a partial rebate that the business entity earned under the agreement; and
(iii) submit to the Division of Finance:
(A) a request for payment of a partial rebate to the business entity;
(B) the name and address of the payee; and
(C) any other information requested by the Division of Finance.
(5) Upon receipt of a request for payment of a partial rebate from the office, the Division of Finance shall:
(a) transfer from the General Fund to the restricted account the amount contained in the request for payment of a partial rebate after reducing the amount transferred by any unencumbered balances in the restricted account; and
(b) notwithstanding Subsections 51-5-3(23)(b) and 63J-1-104(3)(c), after receiving a request for payment of a partial rebate and making the transfer required by Subsection (5)(a), pay the partial rebate from the account.
Enacted by Chapter 190, 2016 General Session
2023 Utah Code › Title 63N - Economic Opportunity Act › Chapter 2 - Tax Credit Incentives for Economic Development › Part 1 - Economic Development Tax Increment Financing › Section 110 - Rulemaking authority.

Effective 5/4/2022
63N-2-110.
Rulemaking authority.
The office may make rules in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, as necessary to administer this part.
Enacted by Chapter 200, 2022 General Session
2023 Utah Code › Title 63N - Economic Opportunity Act › Chapter 2 - Tax Credit Incentives for Economic Development › Part 2 - Enterprise Zone Act › Section 201 - Title.

Affected by 63I-1-263 on 7/1/2028
Effective 5/12/2015
63N-2-201.
Title.
This part is known as the "Enterprise Zone Act."
Renumbered and Amended by Chapter 283, 2015 General Session
2023 Utah Code › Title 63N - Economic Opportunity Act › Chapter 2 - Tax Credit Incentives for Economic Development › Part 2 - Enterprise Zone Act › Section 202 - Definitions.

Affected by 63I-1-263 on 7/1/2028
Effective 5/14/2019
63N-2-202.
Definitions.
As used in this part:
(1) "Business entity" means an entity, sole proprietorship, or individual:
(a) including a claimant, estate, or trust; and
(b) under which or by whom business is conducted or transacted.
(2) "Claimant" means a resident or nonresident person that has:
(a) Utah taxable income as defined in Section 59-7-101; or
(b) state taxable income under Title 59, Chapter 10, Part 1, Determination and Reporting of Tax Liability and Information.
(3) "County applicant" means the governing authority of a county that meets the requirements for designation as an enterprise zone under Section 63N-2-204.
(4) "Estate" means a nonresident estate or a resident estate that has state taxable income under Title 59, Chapter 10, Part 2, Trusts and Estates.
(5) "Municipal applicant" means the governing authority of a city or town that meets the requirements for designation as an enterprise zone under Section 63N-2-204.
(6) "Nonrefundable tax credit" or "tax credit" means a tax credit that a business entity may:
(a) claim:
(i) as provided by statute; and
(ii) in an amount that does not exceed the business entity's tax liability for a taxable year under:
(A)Title 59, Chapter 7, Corporate Franchise and Income Taxes; or
(B)Title 59, Chapter 10, Individual Income Tax Act; and
(b) carry forward or carry back:
(i) if allowed by statute; and
(ii) to the extent that the amount of the tax credit exceeds the business entity's tax liability for a taxable year under:
(A)Title 59, Chapter 7, Corporate Franchise and Income Taxes; or
(B)Title 59, Chapter 10, Individual Income Tax Act.
(7) "Tax incentives" or "tax benefits" means the nonrefundable tax credits described in Section 63N-2-213.
(8) "Trust" means a nonresident trust or a resident trust that has state taxable income under Title 59, Chapter 10, Part 2, Trusts and Estates.
Amended by Chapter 465, 2019 General Session
2023 Utah Code › Title 63N - Economic Opportunity Act › Chapter 2 - Tax Credit Incentives for Economic Development › Part 2 - Enterprise Zone Act › Section 203 - Powers of the office.

Affected by 63I-1-263 on 7/1/2028
Effective 7/1/2021
63N-2-203.
Powers of the office.
The office shall:
(1) monitor the implementation and operation of this part and conduct a continuing evaluation of the progress made in the enterprise zones;
(2) evaluate an application for designation as an enterprise zone from a county applicant or a municipal applicant and determine if the applicant qualifies for that designation;
(3) provide technical assistance to county applicants and municipal applicants in developing applications for designation as enterprise zones;
(4) assist county applicants and municipal applicants designated as enterprise zones in obtaining assistance from the federal government and agencies of the state;
(5) assist a qualified business entity in obtaining the benefits of an incentive or inducement program authorized by this part; and
(6) as part of the annual written report described in Section 63N-1a-306, prepare an annual evaluation that provides:
(a) based on data from the State Tax Commission, the total amount of tax credits claimed under this part;
(b) the total amount awarded in tax credits for each development zone;
(c) the number of new full-time employee positions reported to obtain tax credits in each development zone;
(d) the amount of tax credits awarded for rehabilitating a building in each development zone;
(e) the amount of tax credits awarded for investing in a plant, equipment, or other depreciable property in each development zone; and
(f) recommendations regarding the effectiveness of the program and any suggestions for legislation.
Amended by Chapter 282, 2021 General Session
2023 Utah Code › Title 63N - Economic Opportunity Act › Chapter 2 - Tax Credit Incentives for Economic Development › Part 2 - Enterprise Zone Act › Section 204 - Criteria for designation of enterprise zones -- Application.

Affected by 63I-1-263 on 7/1/2028
Effective 7/1/2020
63N-2-204.
Criteria for designation of enterprise zones -- Application.
(1) A county applicant seeking designation as an enterprise zone shall file an application with the office that, in addition to complying with the other requirements of this part:
(a) verifies that the county has a population of not more than 70,000; and
(b) provides clear evidence of the need for development in the county.
(2) A municipal applicant seeking designation as an enterprise zone shall file an application with the office that, in addition to complying with other requirements of this part:
(a) verifies that the municipality has a population that does not exceed 20,000;
(b) verifies that the municipality is within a county that has a population of not more than 70,000; and
(c) provides clear evidence of the need for development in the municipality.
(3) An application filed under Subsection (1) or (2) shall be in a form and in accordance with procedures approved by the office, and shall include the following information:
(a) a plan developed by the county applicant or municipal applicant that identifies local contributions meeting the requirements of Section 63N-2-205;
(b) the county applicant or municipal applicant has a development plan that outlines:
(i) the types of investment and development within the zone that the county applicant or municipal applicant expects to take place if the incentives specified in this part are provided;
(ii) the specific investment or development reasonably expected to take place;
(iii) any commitments obtained from businesses;
(iv) the projected number of jobs that will be created and the anticipated wage level of those jobs;
(v) any proposed emphasis on the type of jobs created, including any affirmative action plans; and
(vi) a copy of the county applicant's or municipal applicant's economic development plan to demonstrate coordination between the zone and overall county or municipal goals;
(c) the county applicant's or municipal applicant's proposed means of assessing the effectiveness of the development plan or other programs within the zone once they have been implemented within the zone;
(d) any additional information required by the office; and
(e) any additional information the county applicant or municipal applicant considers relevant to its designation as an enterprise zone.
(4) On or after January 1, 2021, no new enterprise zones shall be designated.
Amended by Chapter 360, 2020 General Session
2023 Utah Code › Title 63N - Economic Opportunity Act › Chapter 2 - Tax Credit Incentives for Economic Development › Part 2 - Enterprise Zone Act › Section 205 - Qualifying local contributions.

Affected by 63I-1-263 on 7/1/2028
Effective 5/12/2015
63N-2-205.
Qualifying local contributions.
(1) An area may be designated as an enterprise zone only if the county applicant or municipal applicant agrees to make a qualifying local contribution.
(2) The qualifying local contribution may vary depending on available resources, and may include such elements as:
(a) simplified procedures for obtaining permits;
(b) dedication of available government grants;
(c) dedication of training funds;
(d) waiver of business license fees;
(e) infrastructure improvements;
(f) private contributions;
(g) utility rate concessions;
(h) small business incubator programs; or
(i) management assistance programs.
Renumbered and Amended by Chapter 283, 2015 General Session
2023 Utah Code › Title 63N - Economic Opportunity Act › Chapter 2 - Tax Credit Incentives for Economic Development › Part 2 - Enterprise Zone Act › Section 206 - Eligibility review.

Affected by 63I-1-263 on 7/1/2028
Effective 5/12/2015
63N-2-206.
Eligibility review.
(1) The office shall:
(a) review and evaluate the applications submitted under Section 63N-2-204; and
(b) determine whether each county applicant or municipal applicant is eligible for designation as an enterprise zone.
(2)
(a) The office shall designate enterprise zones.
(b) The office shall consider and evaluate an application using the following criteria:
(i) the pervasiveness of poverty, unemployment, and general distress in the proposed zone;
(ii) the extent of chronic abandonment, deterioration, or reduction in value of commercial, industrial, or residential structures in the proposed zone, and the extent of property tax arrearages in the proposed zone;
(iii) the potential for new investment and economic development in the proposed zone;
(iv) the county applicant's or municipal applicant's proposed use of other state and federal development funds or programs to increase the probability of new investment and development occurring;
(v) the extent to which the projected development in the zone will provide employment to residents of the county and particularly individuals who are unemployed or who are economically disadvantaged;
(vi) the degree to which the county applicant's or municipal applicant's application promotes innovative solutions to economic development problems and demonstrates local initiative; and
(vii) other relevant factors that the office specifies in its recommendation.
Renumbered and Amended by Chapter 283, 2015 General Session
2023 Utah Code › Title 63N - Economic Opportunity Act › Chapter 2 - Tax Credit Incentives for Economic Development › Part 2 - Enterprise Zone Act › Section 207 - Quarterly consideration.

Affected by 63I-1-263 on 7/1/2028
Effective 5/12/2015
63N-2-207.
Quarterly consideration.
The office shall consider designating enterprise zones quarterly.
Renumbered and Amended by Chapter 283, 2015 General Session
2023 Utah Code › Title 63N - Economic Opportunity Act › Chapter 2 - Tax Credit Incentives for Economic Development › Part 2 - Enterprise Zone Act › Section 208 - Duration of designation.

Affected by 63I-1-263 on 7/1/2028
Effective 7/1/2020
63N-2-208.
Duration of designation.
(1) Each enterprise zone has a duration of five years.
(2) On or after January 1, 2021, neither a municipality nor a county may reapply for an enterprise zone designation for an enterprise zone that has reached the end of the enterprise zone's five-year duration.
Amended by Chapter 360, 2020 General Session
2023 Utah Code › Title 63N - Economic Opportunity Act › Chapter 2 - Tax Credit Incentives for Economic Development › Part 2 - Enterprise Zone Act › Section 209 - Contingent designations.

Affected by 63I-1-263 on 7/1/2028
Effective 5/12/2015
63N-2-209.
Contingent designations.
(1) The office may accept applications for, and may at any time grant, a contingent designation of any county as an enterprise zone for purposes of seeking a designation of the county as a federally designated zone.
(2) This designation does not entitle a business operating in that county to the tax incentives under this part.
Renumbered and Amended by Chapter 283, 2015 General Session
2023 Utah Code › Title 63N - Economic Opportunity Act › Chapter 2 - Tax Credit Incentives for Economic Development › Part 2 - Enterprise Zone Act › Section 210 - Revocation of designations.

Affected by 63I-1-263 on 7/1/2028
Effective 3/1/2016
63N-2-210.
Revocation of designations.
(1) The office may revoke the designation of an enterprise zone if no businesses utilize the tax incentives during a calendar year.
(2) Prior to that action, the office shall conduct a public hearing to determine reasons for inactivity and explore possible alternative actions.
Amended by Chapter 11, 2016 General Session
2023 Utah Code › Title 63N - Economic Opportunity Act › Chapter 2 - Tax Credit Incentives for Economic Development › Part 2 - Enterprise Zone Act › Section 211 - Disqualifying transfers.

Affected by 63I-1-263 on 7/1/2028
Effective 3/1/2016
63N-2-211.
Disqualifying transfers.
Except in a county of the first or second class, tax incentives provided by this part are not available to a business entity that closes or permanently curtails operations in another part of the state in connection with a transfer of any part of its business operations to an enterprise zone, if the closure or permanent curtailment is reasonably expected to diminish employment in that part of the state.
Amended by Chapter 11, 2016 General Session
2023 Utah Code › Title 63N - Economic Opportunity Act › Chapter 2 - Tax Credit Incentives for Economic Development › Part 2 - Enterprise Zone Act › Section 212 - Business entities qualifying for tax incentives.

Affected by 63I-1-263 on 7/1/2028
Effective 5/12/2015
63N-2-212.
Business entities qualifying for tax incentives.
(1) Except as otherwise provided in Subsection (2), the tax incentives described in this part are available only to a business entity for which at least 51% of the employees employed at facilities of the business entity located in the enterprise zone are individuals who, at the time of employment, reside in:
(a) the county in which the enterprise zone is located; or
(b) an enterprise zone that is immediately adjacent and contiguous to the county in which the enterprise zone is located.
(2) Subsection (1) does not apply to a business entity that has no employees.
Renumbered and Amended by Chapter 283, 2015 General Session
2023 Utah Code › Title 63N - Economic Opportunity Act › Chapter 2 - Tax Credit Incentives for Economic Development › Part 2 - Enterprise Zone Act › Section 214 - Annual report.

Affected by 63I-1-263 on 7/1/2028
Effective 5/12/2015
63N-2-214.
Annual report.
Each county applicant or municipal applicant designated as an enterprise zone shall annually report to the office regarding the economic activity that has occurred in the zone following the designation.
Renumbered and Amended by Chapter 283, 2015 General Session
2023 Utah Code › Title 63N - Economic Opportunity Act › Chapter 2 - Tax Credit Incentives for Economic Development › Part 2 - Enterprise Zone Act › Section 215 - Indian tribes -- Application.

Affected by 63I-1-263 on 7/1/2028
Effective 5/14/2019
63N-2-215.
Indian tribes -- Application.
(1) For purposes of this section:
(a) "Indian reservation" has the same meaning as defined in Section 9-9-210.
(b) "Indian tribe" has the same meaning as defined in Section 9-9-402.
(c) "Tribal applicant" means the governing authority of a tribe that meets the requirements for designation as an enterprise zone under Subsection (2).
(2) Indian tribes may apply for designation of an area within an Indian reservation as an enterprise zone.
(3) The tribal applicant shall follow the application procedure for a municipal applicant in this part except for the population requirement in Subsections 63N-2-204(2)(a) and (b).
Amended by Chapter 79, 2019 General Session
2023 Utah Code › Title 63N - Economic Opportunity Act › Chapter 2 - Tax Credit Incentives for Economic Development › Part 3 - Targeted Business Income Tax Credit in an Enterprise Zone › Section 301 - Title.

Affected by 63I-2-263 on 12/31/2024
Effective 5/12/2015
63N-2-301.
Title.
This part is known as "Targeted Business Income Tax Credit in an Enterprise Zone."
Enacted by Chapter 283, 2015 General Session
2023 Utah Code › Title 63N - Economic Opportunity Act › Chapter 2 - Tax Credit Incentives for Economic Development › Part 3 - Targeted Business Income Tax Credit in an Enterprise Zone › Section 302 - Definitions.

Affected by 63I-2-263 on 12/31/2024
Effective 5/9/2017
63N-2-302.
Definitions.
As used in this part:
(1) "Business applicant" means a business that:
(a) is a claimant, estate, or trust; and
(b) meets the criteria established in Section 63N-2-304.
(2)
(a) Except as provided in Subsection (2)(b), "claimant" means a resident person or a nonresident person.
(b) "Claimant" does not include an estate or trust.
(3) "Community investment project" means a project that includes one or more of the following criteria in addition to the normal operations of the business applicant:
(a) significant new employment; or
(b) significant new capital development.
(4) "Enterprise zone" means an area within a county or municipality that has been designated as an enterprise zone by the office under Part 2, Enterprise Zone Act.
(5) "Estate" means a resident estate or a nonresident estate.
(6) "Refundable tax credit" means a tax credit that a claimant, estate, or trust may claim:
(a) as provided by statute; and
(b) regardless of whether, for the taxable year for which the claimant, estate, or trust claims the tax credit, the claimant, estate, or trust has a tax liability under:
(i)Title 59, Chapter 7, Corporate Franchise and Income Taxes; or
(ii)Title 59, Chapter 10, Individual Income Tax Act.
(7) "Targeted business income tax credit" means a refundable tax credit available under this part.
(8) "Targeted business income tax credit eligibility certificate" means a document provided by the office to a business applicant before the applicant may claim a targeted business income tax credit under this part.
(9) "Trust" means a resident trust or a nonresident trust.
Amended by Chapter 352, 2017 General Session
2023 Utah Code › Title 63N - Economic Opportunity Act › Chapter 2 - Tax Credit Incentives for Economic Development › Part 3 - Targeted Business Income Tax Credit in an Enterprise Zone › Section 303 - Duties of the office.

Affected by 63I-2-263 on 12/31/2024
Effective 7/1/2021
63N-2-303.
Duties of the office.
The office shall:
(1) monitor the implementation and operation of this part and conduct a continuing evaluation of the effectiveness of the targeted business income tax credit in bringing significant new employment and significant new capital development to rural communities;
(2) determine a business entity's eligibility for a targeted business income tax credit award;
(3) ensure that tax credits are only awarded under this part to a business applicant that has satisfied performance benchmarks as determined by the office;
(4) ensure that the amount of targeted business income tax credit awarded to a business applicant through a targeted business income tax credit eligibility certificate is no more than $100,000 for the business applicant's taxable year;
(5) ensure that the aggregate amount of targeted business income tax credits awarded to business applicants through targeted business income tax credit eligibility certificates is no more than $300,000 for each fiscal year;
(6) as part of the annual written report described in Section 63N-1a-306, prepare an annual evaluation that provides:
(a) the identity of each business applicant that was provided a targeted business income tax credit eligibility certificate by the office during the year of the annual report; and
(b) the total amount awarded in targeted business income tax credit for each development zone; and
(7) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, and in accordance with the provisions of this part, make rules regarding:
(a) the determination of what constitutes:
(i) significant new employment;
(ii) significant new capital development; and
(iii) a community investment project;
(b) the form and content of an application for a targeted business income tax credit eligibility certificate under this part;
(c) documentation or other requirements for a business applicant to receive a targeted business income tax credit eligibility certificate under this part; and
(d) administration of targeted business income tax credit awards and the issuing of targeted business income tax credit eligibility certificates, including relevant timelines and deadlines.
Amended by Chapter 282, 2021 General Session
2023 Utah Code › Title 63N - Economic Opportunity Act › Chapter 2 - Tax Credit Incentives for Economic Development › Part 5 - New Convention Facility Development Incentives › Section 501 - Title.

Effective 5/12/2015
63N-2-501.
Title.
This part is known as "New Convention Facility Development Incentives."
Renumbered and Amended by Chapter 283, 2015 General Session
2023 Utah Code › Title 63N - Economic Opportunity Act › Chapter 2 - Tax Credit Incentives for Economic Development › Part 5 - New Convention Facility Development Incentives › Section 503.5 - Convention Incentive Fund.

Effective 7/1/2015
63N-2-503.5.
Convention Incentive Fund.
(1) There is created an expendable special revenue fund known as the Convention Incentive Fund.
(2)
(a) The incentive fund shall be funded by new tax revenue, as provided in Subsection (3).
(b) No legislative appropriation is required to fund the incentive fund.
(c) All interest generated from the investment of money in the incentive fund shall be deposited into the incentive fund.
(3)
(a) During the portion of the eligibility period specified by the office under Subsection 63N-2-505(7)(a), the commission shall cause new tax revenue to be deposited into the incentive fund as provided in this Subsection (3).
(b) To the extent the commission is able to identify sellers involved in transactions generating state taxes or local taxes before the payment of those taxes, the commission shall deposit new tax revenue directly into the incentive fund, notwithstanding Subsection 59-12-103(3) and before the allocations required by Section 59-12-204, Subsection 59-12-205(2), Section 59-12-401, Section 59-12-603, and Section 59-12-1102.
(c) The commission shall, within 30 days after the office provides the information required under Subsection 63N-2-505(7)(b):
(i) except as provided in Subsection (3)(d), withhold from distribution to counties, cities, and towns the local portion of new tax revenue not deposited into the incentive fund under Subsection (3)(b) and transfer that local portion to the incentive fund; and
(ii) transfer to the incentive fund any state portion of new tax revenue not deposited into the incentive fund under Subsection (3)(b).
(d) The commission may equalize over a 12-month period the withholding required under Subsection (3)(c)(i) for a county, city, or town that requests equalization.
(4) One year after the end of the eligibility period, the commission shall transfer any money remaining in the incentive fund to the Stay Another Day and Bounce Back Fund created in Section 63N-2-511, except to the extent the money is needed to pay an unpaid certified claim.
(5) Except as otherwise provided in this chapter, an agreement with or approval by a local government entity is not required for the use of the state portion or local portion to fund a convention incentive.
(6) Distributions of money from the incentive fund shall be in accordance with Section 63N-2-505.
Enacted by Chapter 417, 2015 General Session
Technically renumbered for proper placement in Utah Code.
2023 Utah Code › Title 63N - Economic Opportunity Act › Chapter 2 - Tax Credit Incentives for Economic Development › Part 5 - New Convention Facility Development Incentives › Section 504 - Independent review committee.

Effective 7/1/2021
63N-2-504.
Independent review committee.
(1) In accordance with rules adopted by the office under Section 63N-2-509, the GO Utah board shall establish a separate, independent review committee to provide recommendations to the office regarding the terms and conditions of an agreement and to consult with the office as provided in this part or in rule.
(2) The review committee shall consist of:
(a) one member appointed by the executive director to represent the office;
(b) two members appointed by the mayor or chief executive of the county in which the qualified hotel is located or proposed to be located;
(c) two members appointed by:
(i) the mayor of the municipality in which the qualified hotel is located or proposed to be located, if the qualified hotel is located or proposed to be located within the boundary of a municipality; or
(ii) the mayor or chief executive of the county in which the qualified hotel is located or proposed to be located, in addition to the two members appointed under Subsection (2)(b), if the qualified hotel is located or proposed to be located outside the boundary of a municipality;
(d) an individual representing the hotel industry, appointed by the Utah Hotel and Lodging Association;
(e) an individual representing the commercial development and construction industry, appointed by the president or chief executive officer of the local chamber of commerce;
(f) an individual representing the convention and meeting planners industry, appointed by the president or chief executive officer of the local convention and visitors bureau; and
(g) one member appointed by the GO Utah board.
(3)
(a) A member serves an indeterminate term and may be removed from the review committee by the appointing authority at any time.
(b) A vacancy may be filled in the same manner as an appointment under Subsection (2).
(4) A member of the review committee may not be paid for serving on the review committee and may not receive per diem or expense reimbursement.
(5) The office shall provide any necessary staff support to the review committee.
Amended by Chapter 282, 2021 General Session
2023 Utah Code › Title 63N - Economic Opportunity Act › Chapter 2 - Tax Credit Incentives for Economic Development › Part 5 - New Convention Facility Development Incentives › Section 507 - Assigning convention incentive.

Effective 5/10/2016
63N-2-507.
Assigning convention incentive.
(1) A host local government that enters into an agreement with the office may, by resolution, assign a convention incentive to a community reinvestment agency, in accordance with rules adopted by the office.
(2) A host local government that adopts a resolution assigning a convention incentive under Subsection (1) shall provide a copy of the resolution to the office.
Amended by Chapter 350, 2016 General Session
2023 Utah Code › Title 63N - Economic Opportunity Act › Chapter 2 - Tax Credit Incentives for Economic Development › Part 5 - New Convention Facility Development Incentives › Section 509 - Rulemaking authority -- Requirements for rules.

Effective 7/1/2015
63N-2-509.
Rulemaking authority -- Requirements for rules.
(1) The office shall, in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, make rules to carry out its responsibilities under this part and to implement the provisions of this part.
(2) The rules the office makes under Subsection (1) shall:
(a) establish, consistent with this part, the conditions required for a convention incentive;
(b) require that a significant capital investment be made in the development of the hotel property;
(c) require a claimant to meet all applicable requirements in order to receive a distribution from the incentive fund;
(d) require that a qualified hotel owner meet the county's requirements to receive an endorsement letter; and
(e) provide for the establishment of an independent review committee, in accordance with the requirements of Section 63N-2-504.
Renumbered and Amended by Chapter 283, 2015 General Session
Amended by Chapter 417, 2015 General Session
2023 Utah Code › Title 63N - Economic Opportunity Act › Chapter 2 - Tax Credit Incentives for Economic Development › Part 5 - New Convention Facility Development Incentives › Section 510 - Report by office -- Posting of report.

Effective 5/3/2023
63N-2-510.
Report by office -- Posting of report.
(1) The office shall include the following information in the office's annual written report described in Section 63N-1a-306:
(a) the state's success in attracting new conventions and corresponding new state revenue;
(b) the estimated amount of convention incentive commitments and the associated calculation made by the office and the period of time over which convention incentives are expected to be paid;
(c) the economic impact on the state related to generating new state revenue and providing convention incentives; and
(d) the estimated and actual costs and economic benefits of the convention incentive commitments that the office made.
(2) Upon the commencement of the construction of a qualified hotel, the office shall send a written notice to the Division of Finance:
(a) referring to the two annual deposits required under Subsection 59-12-103(10); and
(b) notifying the Division of Finance that construction on the qualified hotel has begun.
Amended by Chapter 471, 2023 General Session
2023 Utah Code › Title 63N - Economic Opportunity Act › Chapter 2 - Tax Credit Incentives for Economic Development › Part 5 - New Convention Facility Development Incentives › Section 511 - Stay Another Day and Bounce Back Fund.

Affected by 63I-1-263 on 7/1/2025
Effective 7/1/2022
63N-2-511.
Stay Another Day and Bounce Back Fund.
(1) As used in this section:
(a) "Bounce back fund" means the Stay Another Day and Bounce Back Fund, created in Subsection (2).
(b) "Tourism board" means the Board of Tourism Development created in Section 63N-7-201.
(2) There is created an expendable special revenue fund known as the Stay Another Day and Bounce Back Fund.
(3) The bounce back fund shall:
(a) be administered by the tourism board;
(b) earn interest; and
(c) be funded by:
(i) annual payments under Section 17-31-9 from the county in which a qualified hotel is located;
(ii) money transferred to the bounce back fund under Section 63N-2-503.5 or 63N-2-512; and
(iii) any money that the Legislature chooses to appropriate to the bounce back fund.
(4) Interest earned by the bounce back fund shall be deposited into the bounce back fund.
(5) The tourism board may use money in the bounce back fund to pay for a tourism program of advertising, marketing, and branding of the state, taking into consideration the long-term strategic plan, economic trends, and opportunities for tourism development on a statewide basis.
Amended by Chapter 362, 2022 General Session