1     
ECONOMIC DEVELOPMENT MODIFICATIONS

2     
2019 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Mike Winder

5     
Senate Sponsor: Daniel McCay

6     

7     LONG TITLE
8     General Description:
9          This bill modifies provisions related to the Governor's Office of Economic
10     Development.
11     Highlighted Provisions:
12          This bill:
13          ▸     defines terms and modifies definitions;
14          ▸     modifies provisions related to tax credit incentives for economic development;
15          ▸     repeals provisions related to the Alternative Energy Manufacturing Tax Credit Act;
16     and
17          ▸     makes technical changes.
18     Money Appropriated in this Bill:
19          None
20     Other Special Clauses:
21          This bill provides retrospective operation.
22          This bill provides coordination clauses.
23     Utah Code Sections Affected:
24     AMENDS:
25          59-7-159, as enacted by Laws of Utah 2016, Third Special Session, Chapter 1
26          59-10-137, as enacted by Laws of Utah 2016, Third Special Session, Chapter 1
27          59-10-1025, as last amended by Laws of Utah 2016, Third Special Session, Chapter 1
28          63N-1-102, as renumbered and amended by Laws of Utah 2015, Chapter 283
29          63N-2-103, as last amended by Laws of Utah 2016, Chapter 350
30          63N-2-202, as last amended by Laws of Utah 2016, Chapter 11
31          63N-4-302, as enacted by Laws of Utah 2017, Chapter 274
32          63N-4-402, as enacted by Laws of Utah 2018, Chapter 340
33     REPEALS:
34          59-7-614.8, as last amended by Laws of Utah 2016, Third Special Session, Chapter 1
35          59-10-1030, as last amended by Laws of Utah 2016, Third Special Session, Chapter 1
36          63N-2-701, as renumbered and amended by Laws of Utah 2015, Chapter 283
37          63N-2-702, as renumbered and amended by Laws of Utah 2015, Chapter 283
38          63N-2-703, as last amended by Laws of Utah 2018, Chapter 149
39          63N-2-704, as renumbered and amended by Laws of Utah 2015, Chapter 283
40          63N-2-705, as renumbered and amended by Laws of Utah 2015, Chapter 283
41     Utah Code Sections Affected by Coordination Clause:
42          63N-2-103, as last amended by Laws of Utah 2016, Chapter 350
43     

44     Be it enacted by the Legislature of the state of Utah:
45          Section 1. Section 59-7-159 is amended to read:
46          59-7-159. Review of credits allowed under this chapter.
47          (1) As used in this section, "committee" means the Revenue and Taxation Interim
48     Committee.
49          (2) (a) The committee shall review the tax credits described in this chapter as provided
50     in Subsection (3) and make recommendations concerning whether the tax credits should be
51     continued, modified, or repealed.
52          (b) In conducting the review required under Subsection (2)(a), the committee shall:
53          (i) schedule time on at least one committee agenda to conduct the review;
54          (ii) invite state agencies, individuals, and organizations concerned with the tax credit
55     under review to provide testimony;
56          (iii) (A) invite the Governor's Office of Economic Development to present a summary
57     and analysis of the information for each tax credit regarding which the Governor's Office of
58     Economic Development is required to make a report under this chapter; and
59          (B) invite the Office of the Legislative Fiscal Analyst to present a summary and
60     analysis of the information for each tax credit regarding which the Office of the Legislative
61     Fiscal Analyst is required to make a report under this chapter;
62          (iv) ensure that the committee's recommendations described in this section include an
63     evaluation of:
64          (A) the cost of the tax credit to the state;
65          (B) the purpose and effectiveness of the tax credit; and
66          (C) the extent to which the state benefits from the tax credit; and
67          (v) undertake other review efforts as determined by the committee chairs or as
68     otherwise required by law.
69          (3) (a) On or before November 30, 2017, and every three years after 2017, the
70     committee shall conduct the review required under Subsection (2) of the tax credits allowed
71     under the following sections:
72          (i) Section 59-7-601;
73          (ii) Section 59-7-607;
74          (iii) Section 59-7-612;
75          (iv) Section 59-7-614.1; and
76          (v) Section 59-7-614.5.
77          (b) On or before November 30, 2018, and every three years after 2018, the committee
78     shall conduct the review required under Subsection (2) of the tax credits allowed under the
79     following sections:
80          (i) Section 59-7-609;
81          (ii) Section 59-7-614.2;
82          (iii) Section 59-7-614.10;
83          (iv) Section 59-7-617;
84          (v) Section 59-7-619; and
85          (vi) Section 59-7-620.
86          (c) On or before November 30, 2019, and every three years after 2019, the committee
87     shall conduct the review required under Subsection (2) of the tax credits allowed under the
88     following sections:
89          (i) Section 59-7-605;
90          (ii) Section 59-7-610;
91          (iii) Section 59-7-614;
92          (iv) Section 59-7-614.7; and
93          [(v) Section 59-7-614.8; and]
94          [(vi)] (v) Section 59-7-618.
95          (d) (i) In addition to the reviews described in this Subsection (3), the committee shall
96     conduct a review of a tax credit described in this chapter that is enacted on or after January 1,
97     2017.
98          (ii) The committee shall complete a review described in this Subsection (3)(d) three
99     years after the effective date of the tax credit and every three years after the initial review date.
100          Section 2. Section 59-10-137 is amended to read:
101          59-10-137. Review of credits allowed under this chapter.
102          (1) As used in this section, "committee" means the Revenue and Taxation Interim
103     Committee.
104          (2) (a) The committee shall review the tax credits described in this chapter as provided
105     in Subsection (3) and make recommendations concerning whether the tax credits should be
106     continued, modified, or repealed.
107          (b) In conducting the review required under Subsection (2)(a), the committee shall:
108          (i) schedule time on at least one committee agenda to conduct the review;
109          (ii) invite state agencies, individuals, and organizations concerned with the tax credit
110     under review to provide testimony;
111          (iii) (A) invite the Governor's Office of Economic Development to present a summary
112     and analysis of the information for each tax credit regarding which the Governor's Office of
113     Economic Development is required to make a report under this chapter; and
114          (B) invite the Office of the Legislative Fiscal Analyst to present a summary and
115     analysis of the information for each tax credit regarding which the Office of the Legislative
116     Fiscal Analyst is required to make a report under this chapter;
117          (iv) ensure that the committee's recommendations described in this section include an
118     evaluation of:
119          (A) the cost of the tax credit to the state;
120          (B) the purpose and effectiveness of the tax credit; and
121          (C) the extent to which the state benefits from the tax credit; and
122          (v) undertake other review efforts as determined by the committee chairs or as
123     otherwise required by law.
124          (3) (a) On or before November 30, 2017, and every three years after 2017, the
125     committee shall conduct the review required under Subsection (2) of the tax credits allowed
126     under the following sections:
127          (i) Section 59-10-1004;
128          (ii) Section 59-10-1010;
129          (iii) Section 59-10-1015;
130          (iv) Section 59-10-1025;
131          (v) Section 59-10-1027;
132          (vi) Section 59-10-1031;
133          (vii) Section 59-10-1032;
134          (viii) Section 59-10-1035;
135          (ix) Section 59-10-1104;
136          (x) Section 59-10-1105; and
137          (xi) Section 59-10-1108.
138          (b) On or before November 30, 2018, and every three years after 2018, the committee
139     shall conduct the review required under Subsection (2) of the tax credits allowed under the
140     following sections:
141          (i) Section 59-10-1005;
142          (ii) Section 59-10-1006;
143          (iii) Section 59-10-1012;
144          (iv) Section 59-10-1013;
145          (v) Section 59-10-1022;
146          (vi) Section 59-10-1023;
147          (vii) Section 59-10-1028;
148          (viii) Section 59-10-1034;
149          (ix) Section 59-10-1037; and
150          (x) Section 59-10-1107.
151          (c) On or before November 30, 2019, and every three years after 2019, the committee
152     shall conduct the review required under Subsection (2) of the tax credits allowed under the
153     following sections:
154          (i) Section 59-10-1007;
155          (ii) Section 59-10-1009;
156          (iii) Section 59-10-1014;
157          (iv) Section 59-10-1017;
158          (v) Section 59-10-1018;
159          (vi) Section 59-10-1019;
160          (vii) Section 59-10-1024;
161          (viii) Section 59-10-1029;
162          [(ix) Section 59-10-1030;]
163          [(x)] (ix) Section 59-10-1033;
164          [(xi)] (x) Section 59-10-1036;
165          [(xii)] (xi) Section 59-10-1106; and
166          [(xiii)] (xii) Section 59-10-1111.
167          (d) (i) In addition to the reviews described in this Subsection (3), the committee shall
168     conduct a review of a tax credit described in this chapter that is enacted on or after January 1,
169     2017.
170          (ii) The committee shall complete a review described in this Subsection (3)(d) three
171     years after the effective date of the tax credit and every three years after the initial review date.
172          Section 3. Section 59-10-1025 is amended to read:
173          59-10-1025. Nonrefundable tax credit for investment in certain life science
174     establishments.
175          (1) As used in this section:
176          (a) "Commercial domicile" means the principal place from which the trade or business
177     of a Utah small business corporation is directed or managed.
178          (b) "Eligible claimant, estate, or trust" means the same as that term is defined in
179     Section 63N-2-802.
180          (c) "Life science establishment" means an establishment primarily engaged in the
181     development or manufacture of products in one or more of the following categories:
182          (i) biotechnologies;
183          (ii) medical devices;
184          (iii) medical diagnostics; and
185          (iv) pharmaceuticals.
186          (d) "Office" means the Governor's Office of Economic Development.
187          (e) "Pass-through entity" means the same as that term is defined in Section 59-10-1402.
188          (f) "Pass-through entity taxpayer" means the same as that term is defined in Section
189     59-10-1402.
190          (g) "Qualifying ownership interest" means an ownership interest that is:
191          (i) (A) common stock;
192          (B) preferred stock; or
193          (C) an ownership interest in a pass-through entity;
194          (ii) originally issued to:
195          (A) an eligible claimant, estate, or trust; or
196          (B) a pass-through entity if the eligible claimant, estate, or trust that claims a tax credit
197     under this section was a pass-through entity taxpayer of the pass-through entity on the day on
198     which the qualifying ownership interest was issued and remains a pass-through entity taxpayer
199     of the pass-through entity until the last day of the taxable year for which the eligible claimant,
200     estate, or trust claims a tax credit under this section; and
201          (iii) issued:
202          (A) by a Utah small business corporation;
203          (B) on or after January 1, 2011; and
204          (C) for money or other property, except for stock or securities.
205          (h) (i) Except as provided in Subsection (1)(h)(ii), "Utah small business corporation"
206     means the same as that term is defined in Section 59-10-1022.
207          (ii) For purposes of this section, a corporation under Section 1244(c)(3)(A), Internal
208     Revenue Code, is considered to include a pass-through entity.
209          (2) Subject to the other provisions of this section, for a taxable year beginning on or
210     after January 1, 2011, an eligible claimant, estate, or trust that holds a tax credit certificate
211     issued to the eligible claimant, estate, or trust in accordance with Section 63N-2-808 for that
212     taxable year may claim a nonrefundable tax credit in an amount up to 35% of the purchase
213     price of a qualifying ownership interest in a Utah small business corporation by the claimant,
214     estate, or trust if:
215          (a) the qualifying ownership interest is issued by a Utah small business corporation that
216     is a life science establishment;
217          (b) the qualifying ownership interest in the Utah small business corporation is
218     purchased for at least $25,000;
219          (c) the eligible claimant, estate, or trust owned less than 30% of the qualifying
220     ownership interest of the Utah small business corporation at the time of the purchase of the
221     qualifying ownership interest; and
222          (d) on each day of the taxable year in which the purchase of the qualifying ownership
223     interest was made, the Utah small business corporation described in Subsection (2)(a) has at
224     least 50% of its employees in the state.
225          (3) Subject to Subsection (4), the tax credit under Subsection (2):
226          (a) may only be claimed by an eligible claimant, estate, or trust:
227          (i) for a taxable year for which the eligible claimant, estate, or trust holds a tax credit
228     certificate issued in accordance with Section 63N-2-808; and
229          (ii) subject to obtaining a tax credit certificate for each taxable year as required by
230     Subsection (3)(a)(i), for a period of three taxable years as follows:
231          (A) the tax credit in the taxable year in which the purchase of the qualifying ownership
232     interest was made may not exceed 10% of the purchase price of the qualifying ownership
233     interest;
234          (B) the tax credit in the taxable year after the taxable year described in Subsection
235     (3)(a)(ii)(A) may not exceed 10% of the purchase price of the qualifying ownership interest;
236     and
237          (C) the tax credit in the taxable year two years after the taxable year described in
238     Subsection (3)(a)(ii)(A) may not exceed 15% of the purchase price of the qualifying ownership
239     interest; and
240          (b) may not exceed the lesser of:
241          (i) the amount listed on the tax credit certificate issued in accordance with Section
242     63N-2-808; or
243          (ii) $350,000 in a taxable year.
244          (4) An eligible claimant, estate, or trust may not claim a tax credit under this section
245     for a taxable year if the eligible claimant, estate, or trust:
246          (a) has sold any of the qualifying ownership interest during the taxable year; or
247          (b) does not hold a tax credit certificate for that taxable year that is issued to the
248     eligible claimant, estate, or trust by the office in accordance with Section 63N-2-808.
249          (5) If a Utah small business corporation in which an eligible claimant, estate, or trust
250     purchases a qualifying ownership interest fails, dissolves, or otherwise goes out of business, the
251     eligible claimant, estate, or trust may not claim both the tax credit provided in this section and
252     a capital loss on the qualifying ownership interest.
253          (6) If an eligible claimant is a pass-through entity taxpayer that files a return under
254     Chapter 7, Corporate Franchise and Income Taxes, the eligible claimant may claim the tax
255     credit under this section on the return filed under Chapter 7, Corporate Franchise and Income
256     Taxes.
257          (7) A claimant, estate, or trust may not carry forward or carry back a tax credit under
258     this section.
259          (8) (a) In accordance with Section 59-10-137, the Revenue and Taxation Interim
260     Committee shall study the tax credit allowed by this section and make recommendations
261     concerning whether the tax credit should be continued, modified, or repealed.
262          (b) Except as provided in Subsection (8)(c), for purposes of the study required by this
263     Subsection (8), the office shall provide the following information, if available to the office, to
264     the Office of the Legislative Fiscal Analyst by electronic means:
265          (i) the amount of tax credit that the office grants to each eligible business entity for
266     each taxable year;
267          (ii) the amount of eligible new state tax revenues generated by each eligible product or
268     project;
269          (iii) estimates for each of the next three calendar years of the following:
270          (A) the amount of tax credit that the office will grant;
271          (B) the amount of eligible new state tax revenues that will be generated; and
272          (C) the number of new incremental jobs within the state that will be generated; and
273          [(iv) the information contained in the office's latest report under Section 63N-2-705;
274     and]
275          [(v)] (iv) any other information that the Office of the Legislative Fiscal Analyst
276     requests.
277          (c) (i) In providing the information described in Subsection (8)(b), the office shall
278     redact information that identifies a recipient of a tax credit under this section.
279          (ii) If, notwithstanding the redactions made under Subsection (8)(c)(i), reporting the
280     information described in Subsection (8)(b) might disclose the identity of a recipient of a tax
281     credit, the office may file a request with the Revenue and Taxation Interim Committee to
282     provide the information described in Subsection (8)(b) in the aggregate for all entities that
283     receive the tax credit under this section.
284          (d) As part of the study required by this Subsection (8), the Office of the Legislative
285     Fiscal Analyst shall report to the Revenue and Taxation Interim Committee a summary and
286     analysis of the information provided to the Office of the Legislative Fiscal Analyst by the
287     office under Subsection (8)(b).
288          (e) The Revenue and Taxation Interim Committee shall ensure that the
289     recommendations described in Subsection (8)(a) include an evaluation of:
290          (i) the cost of the tax credit under this section;
291          (ii) the purpose and effectiveness of the tax credit; and
292          (iii) the extent to which the state benefits from the tax credit.
293          Section 4. Section 63N-1-102 is amended to read:
294          63N-1-102. Definitions.
295          As used in this title:
296          (1) "Baseline jobs" means the number of full-time employee positions that existed
297     within a business entity in the state before the date on which a project related to the business
298     entity is approved by the office or by the board.
299          (2) "Baseline state revenue" means the amount of state tax revenue collected from a
300     business entity or the employees of a business entity during the year before the date on which a
301     project related to the business entity is approved by the office or by the board.
302          [(1)] (3) "Board" means the Board of Business and Economic Development created in
303     Section 63N-1-401.
304          [(2)] (4) "Council" means the Governor's Economic Development Coordinating
305     Council created in Section 63N-1-501.
306          [(3)] (5) "Executive director" means the executive director of the office.
307          (6) "Full-time employee" means an employment position that is filled by an employee
308     who works at least 30 hours per week and:
309          (a) may include an employment position filled by more than one employee, if each
310     employee who works less than 30 hours per week is provided benefits comparable to a
311     full-time employee; and
312          (b) may not include an employment position that is shifted from one jurisdiction in the
313     state to another jurisdiction in the state.
314          (7) "High paying job" means a newly created full-time employee position where the
315     aggregate average annual gross wage of the employment position, not including health care or
316     other paid or unpaid benefits, is at least 110% of the average wage of the county in which the
317     employment position exists.
318          (8) "Incremental job" means a full-time employment position in the state that:
319          (a) did not exist within a business entity in the state before the beginning of a project
320     related to the business entity; and
321          (b) is created in addition to the number of baseline jobs that existed within a business
322     entity.
323          (9) "New state revenue" means the state revenue collected from a business entity or a
324     business entity's employees during a calendar year minus the baseline state revenue calculation.
325          [(4)] (10) "Office" or "GOED" means the Governor's Office of Economic
326     Development.
327          (11) "State revenue" means state tax liability paid by a business entity or a business
328     entity's employees under any combination of the following provisions:
329          (a) Title 59, Chapter 7, Corporate Franchise and Income Taxes;
330          (b) Title 59, Chapter 10, Part 1, Determination and Reporting of Tax Liability and
331     Information;
332          (c) Title 59, Chapter 10, Part 2, Trusts and Estates;
333          (d) Title 59, Chapter 10, Part 4, Withholding of Tax; and
334          (e) Title 59, Chapter 12, Sales and Use Tax Act.
335          Section 5. Section 63N-2-103 is amended to read:
336          63N-2-103. Definitions.
337          As used in this part:
338          (1) "Business entity" means a person that enters into an agreement with the office to
339     initiate a new commercial project in Utah that will qualify the person to receive a tax credit
340     under Section 59-7-614.2 or 59-10-1107.
341          (2) "Community reinvestment agency" has the same meaning as that term is defined in
342     Section 17C-1-102.
343          (3) "Development zone" means an economic development zone created under Section
344     63N-2-104.
345          [(4) "High paying jobs" means:]
346          [(a) with respect to a business entity, the aggregate average annual gross wages, not
347     including healthcare or other paid or unpaid benefits, of newly created full-time employment
348     positions in a business entity that are at least 110% of the average wage of a community in
349     which the employment positions will exist;]
350          [(b) with respect to a county, the aggregate average annual gross wages, not including
351     healthcare or other paid or unpaid benefits, of newly created full-time employment positions in
352     a new commercial project within the county that are at least 110% of the average wage of the
353     county in which the employment positions will exist; or]
354          [(c) with respect to a city or town, the aggregate average annual gross wages, not
355     including healthcare or other paid or unpaid benefits of newly created full-time employment
356     positions in a new commercial project within the city or town that are at least 110% of the
357     average wages of the city or town in which the employment positions will exist.]
358          [(5)] (4) "Local government entity" means a county, city, or town that enters into an
359     agreement with the office to have a new commercial project that:
360          (a) is initiated within the county's, city's, or town's boundaries; and
361          (b) qualifies the county, city, or town to receive a tax credit under Section 59-7-614.2.
362          [(6)] (5) (a) "New commercial project" means an economic development opportunity
363     that involves new or expanded industrial, manufacturing, distribution, or business services in
364     Utah.
365          (b) "New commercial project" does not include retail business.
366          [(7) (a) "New incremental jobs" means full-time employment positions that are filled
367     by employees who work at least 30 hours per week and that are:]
368          [(i) with respect to a business entity, created in addition to the baseline count of
369     employment positions that existed within the business entity before the new commercial
370     project;]
371          [(ii) with respect to a county, created as a result of a new commercial project with
372     respect to which the county or a community development and renewal agency seeks to claim a
373     tax credit under Section 59-7-614.2; or]
374          [(iii) with respect to a city or town, created as a result of a new commercial project
375     with respect to which the city, town, or a community development and renewal agency seeks to
376     claim a tax credit under Section 59-7-614.2.]
377          [(b) "New incremental jobs" may include full-time equivalent positions that are filled
378     by more than one employee, if each employee who works less than 30 hours per week is
379     provided benefits comparable to a full-time employee.]
380          [(c) "New incremental jobs" does not include jobs that are shifted from one jurisdiction
381     in the state to another jurisdiction in the state.]
382          [(8) "New state revenues" means:]
383          [(a) with respect to a business entity:]
384          [(i) incremental new state sales and use tax revenues that a business entity pays under
385     Title 59, Chapter 12, Sales and Use Tax Act, as a result of a new commercial project in a
386     development zone;]
387          [(ii) incremental new state tax revenues that a business entity pays as a result of a new
388     commercial project in a development zone under:]
389          [(A) Title 59, Chapter 7, Corporate Franchise and Income Taxes;]
390          [(B) Title 59, Chapter 10, Part 1, Determination and Reporting of Tax Liability and
391     Information;]
392          [(C) Title 59, Chapter 10, Part 2, Trusts and Estates;]
393          [(D) Title 59, Chapter 10, Part 4, Withholding of Tax; or]
394          [(E) a combination of Subsections (8)(a)(ii)(A) through (D);]
395          [(iii) incremental new state tax revenues paid as individual income taxes under Title
396     59, Chapter 10, Part 1, Determination and Reporting of Tax Liability and Information, by
397     employees of a new or expanded industrial, manufacturing, distribution, or business service
398     within a new commercial project as evidenced by payroll records that indicate the amount of
399     employee income taxes withheld and transmitted to the State Tax Commission by the new or
400     expanded industrial, manufacturing, distribution, or business service within the new
401     commercial project; or]
402          [(iv) a combination of Subsections (8)(a)(i) through (iii); or]
403          [(b) with respect to a local government entity:]
404          [(i) incremental new state sales and use tax revenues that are collected under Title 59,
405     Chapter 12, Sales and Use Tax Act, as a result of a new commercial project in a development
406     zone;]
407          [(ii) incremental new state tax revenues that are collected as a result of a new
408     commercial project in a development zone under:]
409          [(A) Title 59, Chapter 7, Corporate Franchise and Income Taxes;]
410          [(B) Title 59, Chapter 10, Part 1, Determination and Reporting of Tax Liability and
411     Information;]
412          [(C) Title 59, Chapter 10, Part 2, Trusts and Estates;]
413          [(D) Title 59, Chapter 10, Part 4, Withholding of Tax; or]
414          [(E) a combination of Subsections (8)(b)(ii)(A) through (D);]
415          [(iii) incremental new state tax revenues paid as individual income taxes under Title
416     59, Chapter 10, Part 1, Determination and Reporting of Tax Liability and Information, by
417     employees of a new or expanded industrial, manufacturing, distribution, or business service
418     within a new commercial project as evidenced by payroll records that indicate the amount of
419     employee income taxes withheld and transmitted to the State Tax Commission by the new or
420     expanded industrial, manufacturing, distribution, or business service within the new
421     commercial project; or]
422          [(iv) a combination of Subsections (8)(b)(i) through (iii).]
423          [(9)] (6) "Significant capital investment" means an amount of at least $10,000,000 to
424     purchase capital or fixed assets, which may include real property, personal property, and other
425     fixtures related to a new commercial project:
426          (a) that represents an expansion of existing operations in the state; or
427          (b) that maintains or increases the business entity's existing work force in the state.
428          [(10)] (7) "Tax credit" means an economic development tax credit created by Section
429     59-7-614.2 or 59-10-1107.
430          [(11)] (8) "Tax credit amount" means the amount the office lists as a tax credit on a tax
431     credit certificate for a taxable year.
432          [(12)] (9) "Tax credit certificate" means a certificate issued by the office that:
433          (a) lists the name of the business entity, local government entity, or community
434     development and renewal agency to which the office authorizes a tax credit;
435          (b) lists the business entity's, local government entity's, or community development and
436     renewal agency's taxpayer identification number;
437          (c) lists the amount of tax credit that the office authorizes the business entity, local
438     government entity, or community development and renewal agency for the taxable year; and
439          (d) may include other information as determined by the office.
440          Section 6. Section 63N-2-202 is amended to read:
441          63N-2-202. Definitions.
442          As used in this part:
443          (1) "Business entity" means an entity, sole proprietorship, or individual:
444          (a) including a claimant, estate, or trust; and
445          (b) under which or by whom business is conducted or transacted.
446          (2) "Claimant" means a resident or nonresident person that has:
447          (a) Utah taxable income as defined in Section 59-7-101; or
448          (b) state taxable income under Title 59, Chapter 10, Part 1, Determination and
449     Reporting of Tax Liability and Information.
450          (3) "County applicant" means the governing authority of a county that meets the
451     requirements for designation as an enterprise zone under Section 63N-2-204.
452          (4) "Estate" means a nonresident estate or a resident estate that has state taxable
453     income under Title 59, Chapter 10, Part 2, Trusts and Estates.
454          (5) "Municipal applicant" means the governing authority of a city or town that meets
455     the requirements for designation as an enterprise zone under Section 63N-2-204.
456          [(6) "New full-time employee position" means a position that has been newly created
457     in addition to the highest baseline count of employment positions that existed within the
458     business entity during the previous three taxable years and is filled by an employee working at
459     least 30 hours per week:]
460          [(a) for a period of at least six consecutive months; and]
461          [(b) where the period ends in the tax year for which the credit is claimed.]
462          [(7)] (6) "Nonrefundable tax credit" or "tax credit" means a tax credit that a business
463     entity may:
464          (a) claim:
465          (i) as provided by statute; and
466          (ii) in an amount that does not exceed the business entity's tax liability for a taxable
467     year under:
468          (A) Title 59, Chapter 7, Corporate Franchise and Income Taxes; or
469          (B) Title 59, Chapter 10, Individual Income Tax Act; and
470          (b) carry forward or carry back:
471          (i) if allowed by statute; and
472          (ii) to the extent that the amount of the tax credit exceeds the business entity's tax
473     liability for a taxable year under:
474          (A) Title 59, Chapter 7, Corporate Franchise and Income Taxes; or
475          (B) Title 59, Chapter 10, Individual Income Tax Act.
476          [(8)] (7) "Tax incentives" or "tax benefits" means the nonrefundable tax credits
477     described in Section 63N-2-213.
478          [(9)] (8) "Trust" means a nonresident trust or a resident trust that has state taxable
479     income under Title 59, Chapter 10, Part 2, Trusts and Estates.
480          Section 7. Section 63N-4-302 is amended to read:
481          63N-4-302. Definitions.
482          As used in this part:
483          (1) (a) "Affiliate" means a person that directly, or indirectly through one or more
484     intermediaries, controls, is controlled by, or is under common control with another person.
485          (b) For the purposes of this part, a person controls another person if the person holds,
486     directly or indirectly, the majority voting or ownership interest in the controlled person or has
487     control over the day-to-day operations of the controlled person by contract or by law.
488          (2) "Claimant" means a resident or nonresident person that has state taxable income.
489          (3) "Closing date" means the date on which a rural investment company has collected
490     all of the investments described in Subsection 63N-4-303(7).
491          (4) (a) "Credit-eligible contribution" means an investment of cash by a claimant in a
492     rural investment company that is or will be eligible for a tax credit as evidenced by notification
493     issued by the office under Subsection 63N-4-303(5)(c).
494          (b) The investment shall purchase an equity interest in the rural investment company or
495     purchase, at par value or premium, a debt instrument issued by the rural investment company
496     that has a maturity date at least five years after the closing date.
497          (5) "Eligible small business" means a business that at the time of an initial growth
498     investment in the business by a rural investment company:
499          (a) has fewer than 150 employees;
500          (b) has less than $10,000,000 in net income for the preceding taxable year;
501          (c) maintains the business's principal business operations in the state; and
502          (d) is engaged in an industry related to:
503          (i) aerospace;
504          (ii) defense;
505          (iii) energy and natural resources;
506          (iv) financial services;
507          (v) life sciences;
508          (vi) outdoor products;
509          (vii) software development;
510          (viii) information technology;
511          (ix) manufacturing; or
512          (x) agribusiness.
513          (6) (a) "Excess return" means the difference between:
514          (i) the present value of all growth investments made by a rural investment company on
515     the day the rural investment company applies to exit the program under Section 63N-4-309,
516     including the present value of all distributions and gains from the growth investments; and
517          (ii) the sum of the amount of the original growth investment and an amount equal to
518     any projected increase in the equity holder's federal or state tax liability, including penalties and
519     interest, related to the equity holder's ownership, management, or operation of the rural
520     investment company.
521          (b) If the amount calculated in Subsection (6)(a) is less than zero, the excess return is
522     equal to zero.
523          (7) "Federally licensed rural business investment company" means a person licensed as
524     a rural business investment company under 7 U.S.C. Sec. 2009cc.
525          (8) "Federally licensed small business investment company" means a person licensed
526     as a small business investment company under 15 U.S.C. Sec. 681.
527          (9) (a) "Full-time employee" means an employee that throughout the year works at
528     least 30 hours per week or meets the customary practices accepted by that industry as full time.
529          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
530     office may make rules that establish additional hour or other criteria to determine what
531     constitutes a full-time employee.
532          (10) "Growth investment" means any capital or equity investment in an eligible small
533     business or any loan made from the investment authority to an eligible small business with a
534     stated maturity at least one year after the date of issuance.
535          (11) (a) "High wage" means a wage that is at least 100% of the county average wage.
536          (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
537     office may make rules that establish additional criteria to determine what constitutes a high
538     wage.
539          (12) "Investment authority" means the minimum amount of investment a rural
540     investment company must make in eligible small businesses in order for credit-eligible
541     contributions to the rural investment company to qualify for a rural job creation tax credit
542     under Section 59-7-621 or 59-10-1038.
543          (13) (a) "New annual jobs" means the difference between:
544          (i) (A) the monthly average of full-time employees that are paid a high wage at an
545     eligible small business for the preceding calendar year; or
546          (B) if the preceding calendar year contains the initial growth investment, the monthly
547     average of full-time employees that are paid a high wage at an eligible small business for the
548     months including and after the initial growth investment and before the end of the preceding
549     calendar year; and
550          (ii) the number of full-time employees that are paid a high wage at the eligible small
551     business on the date of the initial growth investment.
552          (b) If the amount calculated in Subsection (2)(a) is less than zero, the new annual jobs
553     amount is equal to zero.
554          (14) (a) "Principal business operations" means the location where at least 60% of a
555     business's employees work or where employees that are paid at least 60% of a business's
556     payroll work.
557          (b) For the purposes of this part, an out-of-state business that agrees to relocate
558     employees to this state to establish the business's principal business operations in this state
559     using the proceeds of a growth investment is considered to have the business's principal
560     business operations in this state if the business satisfies the requirements of Subsection (14)(a)
561     within 180 days after receiving the growth investment, unless the office agrees to a later date.
562          (15) "Program" means the provisions of this part applicable to a rural investment
563     company.
564          (16) "Rural county" means any county in this state except Salt Lake, Utah, Davis,
565     Weber, Washington, Cache, Tooele, and Summit counties.
566          (17) "Rural investment company" means a person approved by the office under Section
567     63N-4-303.
568          (18) (a) "State reimbursement amount" means the difference between:
569          (i) 50% of the rural investment company's credit-eligible capital contributions; and
570          (ii) the product of:
571          (A) the total sum of new annual jobs reported to the state in the rural investment
572     company's exit report described in Section 63N-4-309; and
573          (B) $20,000.
574          (b) If the amount calculated in Subsection (18)(a) is less than zero, the state
575     reimbursement amount is equal to zero.
576          (19) "Tax credit" means a rural job creation tax credit created by Section 59-7-621 or
577     59-10-1038.
578          (20) "Tax credit certificate" means a certificate issued by the office that:
579          (a) lists the name of the person to which the office authorizes a tax credit;
580          (b) lists the person's taxpayer identification number;
581          (c) lists the amount of tax credit that the office authorizes the person to claim for the
582     taxable year; and
583          (d) may include other information as determined by the office.
584          Section 8. Section 63N-4-402 is amended to read:
585          63N-4-402. Definitions.
586          As used in this part:
587          (1) (a) "Business entity" means a sole proprietorship, partnership, association, joint
588     venture, corporation, firm, trust, foundation, or other organization or entity used in carrying on
589     a business.
590          (b) "Business entity" does not include a business primarily engaged in the following:
591          (i) construction;
592          (ii) staffing;
593          (iii) retail trade; or
594          (iv) public utility activities.
595          [(2) "Immediate family member" means a spouse, child, parent, sibling, grandparent, or
596     grandchild.]
597          [(3) "New full-time employee position" means a position that has been newly created
598     in addition to the highest baseline count of employment positions that existed within a business
599     entity during the previous taxable year and is filled by an employee working at least 30 hours
600     per week:]
601          [(a) in a county of the fourth, fifth, or sixth class;]
602          [(b) for a period of at least 12 consecutive months;]
603          [(c) in a position that does not primarily involve:]
604          [(i) construction;]
605          [(ii) retail trade; or]
606          [(iii) public utility activities;]
607          [(d) where the annual gross wage of the position, not including healthcare or other paid
608     or unpaid benefits, is at least 125% of the average wage of the county in which the position
609     exists; and]
610          [(e) who is not an immediate family member of an owner or officer of the business
611     entity.]
612          [(4)] (2) (a) "Owner or officer" means an individual who owns an ownership interest in
613     an entity or holds a position where the person has authority to manage, direct, control, or make
614     decisions for:
615          (i) the entity or a portion of the entity; or
616          (ii) an employee, agent, or independent contractor of the entity.
617          (b) "Owner or officer" includes:
618          (i) a member of a board of directors or other governing body of an entity; or
619          (ii) a partner in any type of partnership.
620          [(5)] (3) "Rural employment expansion grant" means a grant available under this part.
621          Section 9. Repealer.
622          This bill repeals:
623          Section 59-7-614.8, Nonrefundable alternative energy manufacturing tax credit.
624          Section 59-10-1030, Nonrefundable alternative energy manufacturing tax credit.
625          Section 63N-2-701, Title.
626          Section 63N-2-702, Definitions.
627          Section 63N-2-703, Tax credits.
628          Section 63N-2-704, Qualifications for tax credit -- Procedure.
629          Section 63N-2-705, Reporting.
630          Section 10. Retrospective operation.
631          This bill has retrospective operation for a taxable year beginning on or after January 1,
632     2019.
633          Section 11. Coordinating H.B. 264 with H.B. 433 -- Substantive and technical
634     amendments.
635          If this H.B. 264 and H.B. 433, Inland Port Amendments, both pass and become law, it
636     is the intent of the Legislature that the Office of Legislative Research and General Counsel
637     shall prepare the Utah Code database for publication by amending Section 63N-2-103 to read:
638     "63N-2-103. Definitions.
639          As used in this part:
640          (1) "Authority project area" means a project area of the inland port authority.
641          [(1)] (2) "Business entity" means a person that enters into an agreement with the office
642     to initiate a new commercial project in Utah that will qualify the person to receive a tax credit
643     under Section 59-7-614.2 or 59-10-1107.
644          [(2)] (3) "Community reinvestment agency" [has the same meaning] means the same as
645     that term is defined in Section 17C-1-102.
646          [(3)] (4) "Development zone" means an economic development zone created under
647     Section 63N-2-104.
648          (5) "Inland port authority" means the Utah Inland Port Authority, created in Section
649     11-58-201.
650          [(4) "High paying jobs" means:]
651          [(a) with respect to a business entity, the aggregate average annual gross wages, not
652     including healthcare or other paid or unpaid benefits, of newly created full-time employment
653     positions in a business entity that are at least 110% of the average wage of a community in
654     which the employment positions will exist;]
655          [(b) with respect to a county, the aggregate average annual gross wages, not including
656     healthcare or other paid or unpaid benefits, of newly created full-time employment positions in
657     a new commercial project within the county that are at least 110% of the average wage of the
658     county in which the employment positions will exist; or]
659          [(c) with respect to a city or town, the aggregate average annual gross wages, not
660     including healthcare or other paid or unpaid benefits of newly created full-time employment
661     positions in a new commercial project within the city or town that are at least 110% of the
662     average wages of the city or town in which the employment positions will exist.]
663          [(5)] (6) "Local government entity" means a county, city, [or] town, or inland port
664     authority that enters into an agreement with the office to have a new commercial project that:
665          (a) is initiated within [the county's, city's, or town's boundaries; and]:
666          (i) the boundary of the county, city, or town; or
667          (ii) the project area of the inland port authority; and
668          (b) qualifies the county, city, [or] town, or inland port authority to receive a tax credit
669     under Section 59-7-614.2.
670          [(6)] (7) (a) "New commercial project" means an economic development opportunity
671     that involves new or expanded industrial, manufacturing, distribution, or business services in
672     Utah.
673          (b) "New commercial project" does not include retail business.
674          [(7) (a) "New incremental jobs" means full-time employment positions that are filled
675     by employees who work at least 30 hours per week and that are:]
676          [(i) with respect to a business entity, created in addition to the baseline count of
677     employment positions that existed within the business entity before the new commercial
678     project;]
679          [(ii) with respect to a county, created as a result of a new commercial project with
680     respect to which the county or a community development and renewal agency seeks to claim a
681     tax credit under Section 59-7-614.2; or]
682          [(iii) with respect to a city or town, created as a result of a new commercial project
683     with respect to which the city, town, or a community development and renewal agency seeks to
684     claim a tax credit under Section 59-7-614.2.]
685          [(b) "New incremental jobs" may include full-time equivalent positions that are filled
686     by more than one employee, if each employee who works less than 30 hours per week is
687     provided benefits comparable to a full-time employee.]
688          [(c) "New incremental jobs" does not include jobs that are shifted from one jurisdiction
689     in the state to another jurisdiction in the state.]
690          [(8) "New state revenues" means:]
691          [(a) with respect to a business entity:]
692          [(i) incremental new state sales and use tax revenues that a business entity pays under
693     Title 59, Chapter 12, Sales and Use Tax Act, as a result of a new commercial project in a
694     development zone;]
695          [(ii) incremental new state tax revenues that a business entity pays as a result of a new
696     commercial project in a development zone under:]
697          [(A) Title 59, Chapter 7, Corporate Franchise and Income Taxes;]
698          [(B) Title 59, Chapter 10, Part 1, Determination and Reporting of Tax Liability and
699     Information;]
700          [(C) Title 59, Chapter 10, Part 2, Trusts and Estates;]
701          [(D) Title 59, Chapter 10, Part 4, Withholding of Tax; or]
702          [(E) a combination of Subsections (8)(a)(ii)(A) through (D);]
703          [(iii) incremental new state tax revenues paid as individual income taxes under Title
704     59, Chapter 10, Part 1, Determination and Reporting of Tax Liability and Information, by
705     employees of a new or expanded industrial, manufacturing, distribution, or business service
706     within a new commercial project as evidenced by payroll records that indicate the amount of
707     employee income taxes withheld and transmitted to the State Tax Commission by the new or
708     expanded industrial, manufacturing, distribution, or business service within the new
709     commercial project; or]
710          [(iv) a combination of Subsections (8)(a)(i) through (iii); or]
711          [(b) with respect to a local government entity:]
712          [(i) incremental new state sales and use tax revenues that are collected under Title 59,
713     Chapter 12, Sales and Use Tax Act, as a result of a new commercial project in a development
714     zone;]
715          [(ii) incremental new state tax revenues that are collected as a result of a new
716     commercial project in a development zone under:]
717          [(A) Title 59, Chapter 7, Corporate Franchise and Income Taxes;]
718          [(B) Title 59, Chapter 10, Part 1, Determination and Reporting of Tax Liability and
719     Information;]
720          [(C) Title 59, Chapter 10, Part 2, Trusts and Estates;]
721          [(D) Title 59, Chapter 10, Part 4, Withholding of Tax; or]
722          [(E) a combination of Subsections (8)(b)(ii)(A) through (D);]
723          [(iii) incremental new state tax revenues paid as individual income taxes under Title
724     59, Chapter 10, Part 1, Determination and Reporting of Tax Liability and Information, by
725     employees of a new or expanded industrial, manufacturing, distribution, or business service
726     within a new commercial project as evidenced by payroll records that indicate the amount of
727     employee income taxes withheld and transmitted to the State Tax Commission by the new or
728     expanded industrial, manufacturing, distribution, or business service within the new
729     commercial project; or]
730          [(iv) a combination of Subsections (8)(b)(i) through (iii).]
731          [(9)] (8) "Significant capital investment" means an amount of at least $10,000,000 to
732     purchase capital or fixed assets, which may include real property, personal property, and other
733     fixtures related to a new commercial project:
734          (a) that represents an expansion of existing operations in the state; or
735          (b) that maintains or increases the business entity's existing work force in the state.
736          [(10)] (9) "Tax credit" means an economic development tax credit created by Section
737     59-7-614.2 or 59-10-1107.
738          [(11)] (10) "Tax credit amount" means the amount the office lists as a tax credit on a
739     tax credit certificate for a taxable year.
740          [(12)] (11) "Tax credit certificate" means a certificate issued by the office that:
741          (a) lists the name of the business entity, local government entity, or community
742     development and renewal agency to which the office authorizes a tax credit;
743          (b) lists the business entity's, local government entity's, or community development and
744     renewal agency's taxpayer identification number;
745          (c) lists the amount of tax credit that the office authorizes the business entity, local
746     government entity, or community development and renewal agency for the taxable year; and
747          (d) may include other information as determined by the office."
748          Section 12. Coordinating H.B. 264 with S.B. 269 -- Substantive and technical
749     amendments.
750          If this H.B. 264 and S.B. 269, Military Development Authority, both pass and become
751     law, it is the intent of the Legislature that the Office of Legislative Research and General
752     Counsel shall prepare the Utah Code database for publication by amending Section 63N-2-103
753     to read:
754     "63N-2-103. Definitions.
755          As used in this part:
756          (1) "Authority project area" means a project of the Military Installation Development
757     Authority, created in Section 63H-1-201.
758          [(1)] (2) "Business entity" means a person that enters into an agreement with the office
759     to initiate a new commercial project in Utah that will qualify the person to receive a tax credit
760     under Section 59-7-614.2 or 59-10-1107.
761          [(2)] (3) "Community reinvestment agency" [has the same meaning] means the same as
762     that term is defined in Section 17C-1-102.
763          [(3)] (4) "Development zone" means an economic development zone created under
764     Section 63N-2-104.
765          [(4) "High paying jobs" means:]
766          [(a) with respect to a business entity, the aggregate average annual gross wages, not
767     including healthcare or other paid or unpaid benefits, of newly created full-time employment
768     positions in a business entity that are at least 110% of the average wage of a community in
769     which the employment positions will exist;]
770          [(b) with respect to a county, the aggregate average annual gross wages, not including
771     healthcare or other paid or unpaid benefits, of newly created full-time employment positions in
772     a new commercial project within the county that are at least 110% of the average wage of the
773     county in which the employment positions will exist; or]
774          [(c) with respect to a city or town, the aggregate average annual gross wages, not
775     including healthcare or other paid or unpaid benefits of newly created full-time employment
776     positions in a new commercial project within the city or town that are at least 110% of the
777     average wages of the city or town in which the employment positions will exist.]
778          (5) "Local government entity" means:
779          (a) a county, city, or town that enters into an agreement with the office to have a new
780     commercial project that:
781          [(a)] (i) is initiated within the county's, city's, or town's boundaries; and
782          [(b)] (ii) qualifies the county, city, or town to receive a tax credit under Section
783     59-7-614.2[.]; or
784          (b) the Military Installation Development Authority, if the Military Installation
785     Development Authority enters into an agreement described in Subsection (5)(a).
786          (6) (a) "New commercial project" means an economic development opportunity that
787     involves new or expanded industrial, manufacturing, distribution, or business services in Utah.
788          (b) "New commercial project" does not include retail business.
789          [(7) (a) "New incremental jobs" means full-time employment positions that are filled
790     by employees who work at least 30 hours per week and that are:]
791          [(i) with respect to a business entity, created in addition to the baseline count of
792     employment positions that existed within the business entity before the new commercial
793     project;]
794          [(ii) with respect to a county, created as a result of a new commercial project with
795     respect to which the county or a community development and renewal agency seeks to claim a
796     tax credit under Section 59-7-614.2; or]
797          [(iii) with respect to a city or town, created as a result of a new commercial project
798     with respect to which the city, town, or a community development and renewal agency seeks to
799     claim a tax credit under Section 59-7-614.2.]
800          [(b) "New incremental jobs" may include full-time equivalent positions that are filled
801     by more than one employee, if each employee who works less than 30 hours per week is
802     provided benefits comparable to a full-time employee.]
803          [(c) "New incremental jobs" does not include jobs that are shifted from one jurisdiction
804     in the state to another jurisdiction in the state.]
805          [(8) "New state revenues" means:]
806          [(a) with respect to a business entity:]
807          [(i) incremental new state sales and use tax revenues that a business entity pays under
808     Title 59, Chapter 12, Sales and Use Tax Act, as a result of a new commercial project in a
809     development zone;]
810          [(ii) incremental new state tax revenues that a business entity pays as a result of a new
811     commercial project in a development zone under:]
812          [(A) Title 59, Chapter 7, Corporate Franchise and Income Taxes;]
813          [(B) Title 59, Chapter 10, Part 1, Determination and Reporting of Tax Liability and
814     Information;]
815          [(C) Title 59, Chapter 10, Part 2, Trusts and Estates;]
816          [(D) Title 59, Chapter 10, Part 4, Withholding of Tax; or]
817          [(E) a combination of Subsections (8)(a)(ii)(A) through (D);]
818          [(iii) incremental new state tax revenues paid as individual income taxes under Title
819     59, Chapter 10, Part 1, Determination and Reporting of Tax Liability and Information, by
820     employees of a new or expanded industrial, manufacturing, distribution, or business service
821     within a new commercial project as evidenced by payroll records that indicate the amount of
822     employee income taxes withheld and transmitted to the State Tax Commission by the new or
823     expanded industrial, manufacturing, distribution, or business service within the new
824     commercial project; or]
825          [(iv) a combination of Subsections (8)(a)(i) through (iii); or]
826          [(b) with respect to a local government entity:]
827          [(i) incremental new state sales and use tax revenues that are collected under Title 59,
828     Chapter 12, Sales and Use Tax Act, as a result of a new commercial project in a development
829     zone;]
830          [(ii) incremental new state tax revenues that are collected as a result of a new
831     commercial project in a development zone under:]
832          [(A) Title 59, Chapter 7, Corporate Franchise and Income Taxes;]
833          [(B) Title 59, Chapter 10, Part 1, Determination and Reporting of Tax Liability and
834     Information;]
835          [(C) Title 59, Chapter 10, Part 2, Trusts and Estates;]
836          [(D) Title 59, Chapter 10, Part 4, Withholding of Tax; or]
837          [(E) a combination of Subsections (8)(b)(ii)(A) through (D);]
838          [(iii) incremental new state tax revenues paid as individual income taxes under Title
839     59, Chapter 10, Part 1, Determination and Reporting of Tax Liability and Information, by
840     employees of a new or expanded industrial, manufacturing, distribution, or business service
841     within a new commercial project as evidenced by payroll records that indicate the amount of
842     employee income taxes withheld and transmitted to the State Tax Commission by the new or
843     expanded industrial, manufacturing, distribution, or business service within the new
844     commercial project; or]
845          [(iv) a combination of Subsections (8)(b)(i) through (iii).]
846          [(9)] (7) "Significant capital investment" means an amount of at least $10,000,000 to
847     purchase capital or fixed assets, which may include real property, personal property, and other
848     fixtures related to a new commercial project:
849          (a) that represents an expansion of existing operations in the state; or
850          (b) that maintains or increases the business entity's existing work force in the state.
851          [(10)] (8) "Tax credit" means an economic development tax credit created by Section
852     59-7-614.2 or 59-10-1107.
853          [(11)] (9) "Tax credit amount" means the amount the office lists as a tax credit on a tax
854     credit certificate for a taxable year.
855          [(12)] (10) "Tax credit certificate" means a certificate issued by the office that:
856          (a) lists the name of the business entity, local government entity, or community
857     development and renewal agency to which the office authorizes a tax credit;
858          (b) lists the business entity's, local government entity's, or community development and
859     renewal agency's taxpayer identification number;
860          (c) lists the amount of tax credit that the office authorizes the business entity, local
861     government entity, or community development and renewal agency for the taxable year; and
862          (d) may include other information as determined by the office."
863          Section 13. Coordinating H.B. 264, H.B. 433, and S.B. 269 -- Substantive and
864     technical amendments.
865          If this H.B. 264, and H.B. 433, Inland Port Amendments, and S.B. 269, Military
866     Development Authority, all pass and become law, it is the intent of the Legislature that:
867          (1) this coordination clause supersedes the other coordination clauses in this H.B. 264
868     and the coordination clause in S.B. 269, Military Development Authority; and
869          (2) the Office of Legislative Research and General Counsel shall prepare the Utah
870     Code database for publication by amending Section 63N-2-103 to read:
871     "63N-2-103. Definitions.
872          As used in this part:
873          (1) "Authority" means:
874          (a) the Utah Inland Port Authority, created in Section 11-58-201; or
875          (b) the Military Installation Development Authority, created in Section 63H-1-201.
876          (2) "Authority project area" means a project area of:
877          (a) the Utah Inland Port Authority, created in Section 11-58-201; or
878          (b) the Military Installation Development Authority, created in Section 63H-1-201.
879          [(1)] (3) "Business entity" means a person that enters into an agreement with the office
880     to initiate a new commercial project in Utah that will qualify the person to receive a tax credit
881     under Section 59-7-614.2 or 59-10-1107.
882          [(2)] (4) "Community reinvestment agency" has the same meaning as that term is
883     defined in Section 17C-1-102.
884          [(3)] (5) "Development zone" means an economic development zone created under
885     Section 63N-2-104.
886          [(4) "High paying jobs" means:]
887          [(a) with respect to a business entity, the aggregate average annual gross wages, not
888     including healthcare or other paid or unpaid benefits, of newly created full-time employment
889     positions in a business entity that are at least 110% of the average wage of a community in
890     which the employment positions will exist;]
891          [(b) with respect to a county, the aggregate average annual gross wages, not including
892     healthcare or other paid or unpaid benefits, of newly created full-time employment positions in
893     a new commercial project within the county that are at least 110% of the average wage of the
894     county in which the employment positions will exist; or]
895          [(c) with respect to a city or town, the aggregate average annual gross wages, not
896     including healthcare or other paid or unpaid benefits of newly created full-time employment
897     positions in a new commercial project within the city or town that are at least 110% of the
898     average wages of the city or town in which the employment positions will exist.]
899          [(5)] (6) "Local government entity" means a county, city, [or] town, or authority that
900     enters into an agreement with the office to have a new commercial project that:
901          (a) is initiated within:
902          (i) [the county's, city's, or town's boundaries] the boundary of the county, city, or town;
903     or
904          (ii) an authority project area; and
905          (b) qualifies the county, city, [or] town, or authority to receive a tax credit under
906     Section 59-7-614.2.
907          [(6)] (7) (a) "New commercial project" means an economic development opportunity
908     that involves new or expanded industrial, manufacturing, distribution, or business services in
909     Utah.
910          (b) "New commercial project" does not include retail business.
911          [(7) (a) "New incremental jobs" means full-time employment positions that are filled
912     by employees who work at least 30 hours per week and that are:]
913          [(i) with respect to a business entity, created in addition to the baseline count of
914     employment positions that existed within the business entity before the new commercial
915     project;]
916          [(ii) with respect to a county, created as a result of a new commercial project with
917     respect to which the county or a community development and renewal agency seeks to claim a
918     tax credit under Section 59-7-614.2; or]
919          [(iii) with respect to a city or town, created as a result of a new commercial project
920     with respect to which the city, town, or a community development and renewal agency seeks to
921     claim a tax credit under Section 59-7-614.2.]
922          [(b) "New incremental jobs" may include full-time equivalent positions that are filled
923     by more than one employee, if each employee who works less than 30 hours per week is
924     provided benefits comparable to a full-time employee.]
925          [(c) "New incremental jobs" does not include jobs that are shifted from one jurisdiction
926     in the state to another jurisdiction in the state.]
927          [(8) "New state revenues" means:]
928          [(a) with respect to a business entity:]
929          [(i) incremental new state sales and use tax revenues that a business entity pays under
930     Title 59, Chapter 12, Sales and Use Tax Act, as a result of a new commercial project in a
931     development zone;]
932          [(ii) incremental new state tax revenues that a business entity pays as a result of a new
933     commercial project in a development zone under:]
934          [(A) Title 59, Chapter 7, Corporate Franchise and Income Taxes;]
935          [(B) Title 59, Chapter 10, Part 1, Determination and Reporting of Tax Liability and
936     Information;]
937          [(C) Title 59, Chapter 10, Part 2, Trusts and Estates;]
938          [(D) Title 59, Chapter 10, Part 4, Withholding of Tax; or]
939          [(E) a combination of Subsections (8)(a)(ii)(A) through (D);]
940          [(iii) incremental new state tax revenues paid as individual income taxes under Title
941     59, Chapter 10, Part 1, Determination and Reporting of Tax Liability and Information, by
942     employees of a new or expanded industrial, manufacturing, distribution, or business service
943     within a new commercial project as evidenced by payroll records that indicate the amount of
944     employee income taxes withheld and transmitted to the State Tax Commission by the new or
945     expanded industrial, manufacturing, distribution, or business service within the new
946     commercial project; or]
947          [(iv) a combination of Subsections (8)(a)(i) through (iii); or]
948          [(b) with respect to a local government entity:]
949          [(i) incremental new state sales and use tax revenues that are collected under Title 59,
950     Chapter 12, Sales and Use Tax Act, as a result of a new commercial project in a development
951     zone;]
952          [(ii) incremental new state tax revenues that are collected as a result of a new
953     commercial project in a development zone under:]
954          [(A) Title 59, Chapter 7, Corporate Franchise and Income Taxes;]
955          [(B) Title 59, Chapter 10, Part 1, Determination and Reporting of Tax Liability and
956     Information;]
957          [(C) Title 59, Chapter 10, Part 2, Trusts and Estates;]
958          [(D) Title 59, Chapter 10, Part 4, Withholding of Tax; or]
959          [(E) a combination of Subsections (8)(b)(ii)(A) through (D);]
960          [(iii) incremental new state tax revenues paid as individual income taxes under Title
961     59, Chapter 10, Part 1, Determination and Reporting of Tax Liability and Information, by
962     employees of a new or expanded industrial, manufacturing, distribution, or business service
963     within a new commercial project as evidenced by payroll records that indicate the amount of
964     employee income taxes withheld and transmitted to the State Tax Commission by the new or
965     expanded industrial, manufacturing, distribution, or business service within the new
966     commercial project; or]
967          [(iv) a combination of Subsections (8)(b)(i) through (iii).]
968          [(9)] (8) "Significant capital investment" means an amount of at least $10,000,000 to
969     purchase capital or fixed assets, which may include real property, personal property, and other
970     fixtures related to a new commercial project:
971          (a) that represents an expansion of existing operations in the state; or
972          (b) that maintains or increases the business entity's existing work force in the state.
973          [(10)] (9) "Tax credit" means an economic development tax credit created by Section
974     59-7-614.2 or 59-10-1107.
975          [(11)] (10) "Tax credit amount" means the amount the office lists as a tax credit on a
976     tax credit certificate for a taxable year.
977          [(12)] (11) "Tax credit certificate" means a certificate issued by the office that:
978          (a) lists the name of the business entity, local government entity, or community
979     development and renewal agency to which the office authorizes a tax credit;
980          (b) lists the business entity's, local government entity's, or community development and
981     renewal agency's taxpayer identification number;
982          (c) lists the amount of tax credit that the office authorizes the business entity, local
983     government entity, or community development and renewal agency for the taxable year; and
984          (d) may include other information as determined by the office."