63N-2-105.  Requirements for claiming tax credit — Application for tax credit certificate — Procedure.

(1)  A business entity may claim a tax credit under this part if the office:

Terms Used In Utah Code 63N-2-105

  • business entity: includes a nonprofit entity. See Utah Code 63N-2-103
  • Commission: means the Unified Economic Opportunity Commission created in Section 63N-1a-201. See Utah Code 63N-1a-102
  • 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. See Utah Code 63N-2-103
  • Signature: includes a name, mark, or sign written with the intent to authenticate an instrument or writing. See Utah Code 68-3-12.5
  • 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
  • Tax credit: means an economic development tax credit created by Section 59-7-614. See Utah Code 63N-2-103
  • 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. See Utah Code 63N-2-103
  • Written agreement: means a written agreement entered into between the office and a business entity under Section 63N-2-104. See Utah Code 63N-2-103
    • (a)  determines that the business entity is eligible for a tax credit under Section 63N-2-104.1;

    (b)  enters into a written agreement with the business entity in accordance with Section 63N-2-104.2; and

    (c)  issues a tax credit certificate to the business entity in accordance with this section.

    • (2)  A business entity seeking to receive a tax credit shall provide the office with:

    (a)  an application for a tax credit certificate, including a certification, by an officer of the business entity, of any signature on the application;

    (b)  documentation of the new state revenues from the business entity’s new commercial project that were paid during a calendar year;

    (c)  known or expected detriments to the state or existing businesses in the state;

    (d)  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;

    (e)  a document that expressly directs and authorizes the Department of Workforce Services to disclose to the office the business entity’s unemployment insurance contribution reports that would otherwise be subject to confidentiality under Section 35A-4-312; and

    (f)  documentation that the business entity has satisfied the performance benchmarks outlined in the written agreement.

    (3) 

    (a) 

    (i)  The office shall submit the document described in Subsection (2)(d) to the State Tax Commission.

    (ii)  Upon receipt of the document described in Subsection (2)(d), the State Tax Commission shall provide the office with the returns and other information requested by the office that the State Tax Commission is directed or authorized to provide to the office in accordance with Subsection (2)(d).

    (b) 

    (i)  The office shall submit the document described in Subsection (2)(e) to the Department of Workforce Services.

    (ii)  Upon receipt of the document described in Subsection (2)(e), the Department of Workforce Services shall provide the office with the information that the Department of Workforce Services is directed or authorized to provide to the office in accordance with Subsection (2)(e).

    (4)  If the returns and other information provided under Subsections (2) and (3) provide the office with a reasonable justification for authorizing or continuing a tax credit, the office shall:

    (a)  determine the amount of the tax credit to be granted to the business entity, consistent with the terms of the written agreement;

    (b)  issue a tax credit certificate to the business entity; and

    (c)  provide a digital record of the tax credit certificate to the State Tax Commission.

    (5) 

    (a)  A business entity may claim a tax credit in the amount listed on the tax credit certificate on its tax return.

    (b)  A business entity that claims a tax credit under this section shall retain the tax credit certificate in accordance with Section 59-7-614.2 or 59-10-1107.

    Amended by Chapter 200, 2022 General Session

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