(1) If the office determines that a business entity is eligible for a tax credit under Section 63N-2-104.1, the office may enter into a written agreement with the business entity that:

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Terms Used In Utah Code 63N-2-104.2

  • business entity: includes a nonprofit entity. See Utah Code 63N-2-103
  • Development zone: means an economic development zone created under Section 63N-2-104. See Utah Code 63N-2-103
  • GOEO board: means the Board of Economic Opportunity created in Section 63N-1a-401. See Utah Code 63N-1a-102
  • Local government entity: means a county, city, or town. See Utah Code 63N-2-103
  • New commercial project: means an economic development opportunity that:
         (5)(a) involves a targeted industry;
         (5)(b) is located within:
              (5)(b)(i) a county of the third, fourth, fifth, or sixth class; or
              (5)(b)(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
         (5)(c) involves an economic development opportunity that the commission determines to be eligible for a tax credit under this part. See Utah Code 63N-2-103
  • New state revenue: means the state revenue collected from a business entity or a business entity's employees during a calendar year minus the baseline state revenue calculation. See Utah Code 63N-1a-102
  • Process: means a writ or summons issued in the course of a judicial proceeding. See Utah Code 68-3-12.5
  • Remote work opportunity: means a new commercial project that:
         (6)(a) does not require a physical office in the state where employees associated with the new commercial project are required to work; and
         (6)(b) requires employees associated with the new commercial project to:
              (6)(b)(i) work remotely from a location within the state; and
              (6)(b)(ii) maintain residency in the state. See Utah Code 63N-2-103
  • State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
  • State revenue: means state tax liability paid by a business entity or a business entity's employees under any combination of the following provisions:
         (12)(a) Title 59, Chapter 7, Corporate Franchise and Income Taxes;
         (12)(b) Title 59, Chapter 10, Part 1, Determination and Reporting of Tax Liability and Information;
         (12)(c) Title 59, Chapter 10, Part 2, Trusts and Estates;
         (12)(d) Title 59, Chapter 10, Part 4, Withholding of Tax; and
         (12)(e) Title 59, Chapter 12, Sales and Use Tax Act. See Utah Code 63N-1a-102
  • Tax credit: means an economic development tax credit created by Section Utah Code 63N-2-103
  • Written agreement: means a written agreement entered into between the office and a business entity under Section Utah Code 63N-2-103
     (1)(a) establishes performance benchmarks for the business entity to claim a tax credit, including any minimum wage requirements;
     (1)(b) specifies the maximum amount of tax credit that the business entity may be authorized for a taxable year and over the life of the new commercial project, subject to the limitations in Section 63N-2-104.3;
     (1)(c) establishes the length of time the business entity may claim a tax credit;
     (1)(d) requires the business entity to retain records supporting a claim for a tax credit for at least four years after the business entity claims the tax credit;
     (1)(e) requires the business entity to submit to audits for verification of any tax credit claimed; and
     (1)(f) requires the business entity, in order to claim a tax credit, to meet the requirements of Section 63N-2-105.
(2) In establishing the terms of a written agreement, including the duration and amount of tax credit that the business entity may be authorized to receive, the office shall:

     (2)(a) authorize the tax credit in a manner that provides the most effective incentive for the new commercial project;
     (2)(b) consider the following factors:

          (2)(b)(i) whether the new commercial project provides vital or specialized support to supply chains;
          (2)(b)(ii) whether the new commercial project provides an innovative product, technology, or service;
          (2)(b)(iii) the number and wages of new incremental jobs associated with the new commercial project;
          (2)(b)(iv) the amount of financial support provided by local government entities for the new commercial project;
          (2)(b)(v) the amount of capital expenditures associated with the new commercial project;
          (2)(b)(vi) whether the new commercial project returns jobs transferred overseas;
          (2)(b)(vii) the rate of unemployment in the county in which the new commercial project is located;
          (2)(b)(viii) whether the new commercial project creates a remote work opportunity;
          (2)(b)(ix) whether the new commercial project is located in a development zone created by a local government entity as described in Subsection 63N-2-104(2);
          (2)(b)(x) whether the business entity commits to hiring Utah workers for the new commercial project;
          (2)(b)(xi) whether the business entity adopts a corporate citizenry plan or supports initiatives in the state that advance education, gender equality, diversity and inclusion, work-life balance, environmental or social good, or other similar causes;
          (2)(b)(xii) whether the business entity’s headquarters are located within the state;
          (2)(b)(xiii) the likelihood of other business entities relocating to another state as a result of the new commercial project;
          (2)(b)(xiv) the necessity of the tax credit for the business entity’s expansion in the state or relocation from another state;
          (2)(b)(xv) whether the proposed new commercial project might reasonably be expected to occur in the foreseeable future without the tax credit; and
          (2)(b)(xvi) the location and impact of the new commercial project on existing and planned transportation facilities, existing and planned housing, including affordable housing, and public infrastructure; and
     (2)(c) consult with the GOEO board.
(3) In determining the amount of tax credit that a business entity may be authorized to receive under a written agreement, the office may:

     (3)(a) authorize a higher or optimized amount of tax credit for a new commercial project located within a development zone created by a local government entity as described in Subsection 63N-2-104(2); and
     (3)(b) establish by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, a process by which the office closely approximates the amount of taxes the business entity paid under Title 59, Chapter 12, Sales and Use Tax Act, for a capital project.
(4) If the office identifies any of the following events after entering into a written agreement with a business entity, the office and the business entity shall amend, or the office may terminate, the written agreement:

     (4)(a) a change in the business entity’s organization resulting from a merger with or acquisition of another entity located in the state;
     (4)(b) a material increase in the business entity’s retail operations that results in new state revenue not subject to the incentive; or
     (4)(c) an increase in the business entity’s operations that:

          (4)(c)(i) is outside the scope of the written agreement or outside the boundaries of a development zone; and
          (4)(c)(ii) results in new state revenue not subject to the incentive.
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