7 LONG TITLE
8 General Description:
9 This bill modifies provisions related to economic development.
10 Highlighted Provisions:
11 This bill:
12 ▸ requires the Unified Economic Opportunity Commission, instead of the Business
13 and Economic Development Subcommittee, to identify targeted industries for
14 economic development in the state;
15 ▸ modifies provisions related to the issuance of economic development tax credits by
16 the Governor's Office of Economic Opportunity (GO Utah office), including by:
17 • defining and modifying terms;
18 • limiting tax credit eligibility to certain projects involving targeted industries,
19 located within rural areas or approved by the Unified Economic Opportunity
21 • repealing provisions allowing a local government entity or community
22 reinvestment agency to receive a tax credit;
23 • allowing a local government entity to create an economic development zone for
24 the purpose of incentivizing projects within the local government entity's
26 • allowing the GO Utah office to issue tax credits for projects that establish
27 remote work opportunities in the state;
28 • requiring the GO Utah office to conduct an economic impact study to determine
29 a business entity's eligibility for a tax credit;
30 • establishing requirements for the GO Utah office to enter into a written
31 agreement with a business entity, including factors for the GO Utah office to
32 consider in determining the duration and amount of tax credit;
33 • modifying provisions related to the process for a business entity to claim a tax
34 credit; and
35 • allowing the GO Utah office to make rules for purposes of administration; and
36 ▸ makes technical and conforming changes.
37 Money Appropriated in this Bill:
39 Other Special Clauses:
40 This bill provides a special effective date.
41 Utah Code Sections Affected:
43 59-7-614.2, as last amended by Laws of Utah 2021, Chapter 282
44 63N-1a-102, as last amended by Laws of Utah 2021, Chapter 381 and renumbered and
45 amended by Laws of Utah 2021, Chapter 282
46 63N-1a-202, as enacted by Laws of Utah 2021, Chapter 282
47 63N-1a-301, as renumbered and amended by Laws of Utah 2021, Chapter 282
48 63N-2-102, as last amended by Laws of Utah 2015, Chapter 344 and renumbered and
49 amended by Laws of Utah 2015, Chapter 283
50 63N-2-103, as last amended by Laws of Utah 2021, Chapters 282 and 381
51 63N-2-104, as last amended by Laws of Utah 2021, Chapters 282, 381 and last
52 amended by Coordination Clause, Laws of Utah 2021, Chapter 282
53 63N-2-105, as last amended by Laws of Utah 2021, Chapters 282 and 381
54 63N-2-107, as last amended by Laws of Utah 2021, Chapters 282 and 382
55 63N-3-102, as last amended by Laws of Utah 2021, Chapter 282
56 63N-3-111, as last amended by Laws of Utah 2021, Chapters 282 and 382
58 63N-2-104.1, Utah Code Annotated 1953
59 63N-2-104.2, Utah Code Annotated 1953
60 63N-2-104.3, Utah Code Annotated 1953
61 63N-2-110, Utah Code Annotated 1953
63 63N-2-108, as last amended by Laws of Utah 2016, Chapter 350
65 Be it enacted by the Legislature of the state of Utah:
66 Section 1. Section 59-7-614.2 is amended to read:
67 59-7-614.2. Refundable economic development tax credit.
68 (1) As used in this section:
69 (a) "Business entity" means a taxpayer that meets the definition of "business entity" as
70 defined in Section 63N-2-103.
80 (2) Subject to the other provisions of this section, a business entity[
83 (3) The tax credit under this section is the amount listed as the tax credit amount on the
84 tax credit certificate that the office issues to the business entity[
99 (4) (a) In accordance with any rules prescribed by the commission under Subsection
100 (4)(b), the commission shall make a refund to a business entity that claims a tax credit under
101 this section if the amount of the tax credit exceeds the business entity's tax liability for a
102 taxable year.
103 (b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
104 commission may make rules providing procedures for making a refund to a business entity as
105 required by Subsection (4)(a).
107 Committee shall study the tax credit allowed by this section and make recommendations
108 concerning whether the tax credit should be continued, modified, or repealed.
109 (b) Except as provided in Subsection [
110 this Subsection [
111 office, to the Revenue and Taxation Interim Committee by electronic means:
112 (i) the amount of tax credit that the office grants to each business entity[
114 (ii) the criteria that the office uses in granting a tax credit;
121 (iii) the new state revenue generated by the business entity for the calendar year;
122 (iv) estimates for each of the next three calendar years of the following:
123 (A) the amount of tax credits that the office will grant;
124 (B) the amount of new state revenue that will be generated; and
125 (C) the number of new incremental jobs within the state that will be generated;
126 (v) the information contained in the office's latest report under Section 63N-2-106; and
127 (vi) any other information that the Revenue and Taxation Interim Committee requests.
128 (c) (i) In providing the information described in Subsection [
129 redact information that identifies a recipient of a tax credit under this section.
130 (ii) If, notwithstanding the redactions made under Subsection [
131 the information described in Subsection [
132 a tax credit, the office may file a request with the Revenue and Taxation Interim Committee to
133 provide the information described in Subsection [
134 entities [
135 (d) The Revenue and Taxation Interim Committee shall ensure that the
136 recommendations described in Subsection [
137 (i) the cost of the tax credit to the state;
138 (ii) the purpose and effectiveness of the tax credit; and
139 (iii) the extent to which the state benefits from the tax credit.
140 Section 2. Section 63N-1a-102 is amended to read:
141 63N-1a-102. Definitions.
142 As used in this title:
143 (1) "Baseline jobs" means the number of full-time employee positions that existed
144 within a business entity in the state before the date on which a project related to the business
145 entity is approved by the office or by the GO Utah board.
146 (2) "Baseline state revenue" means the amount of state tax revenue collected from a
147 business entity or the employees of a business entity during the year before the date on which a
148 project related to the business entity is approved by the office or by the GO Utah board.
149 (3) "Commission" means the Unified Economic Opportunity Commission created in
150 Section 63N-1a-201.
151 (4) "Economic opportunity agency" includes:
152 (a) the Department of Workforce Services;
153 (b) the Department of Cultural and Community Engagement;
154 (c) the Department of Commerce;
155 (d) the Department of Natural Resources;
156 (e) the Office of Energy Development;
157 (f) the State Board of Education;
158 (g) institutions of higher education;
159 (h) the Utah Multicultural Commission;
160 (i) the World Trade Center Utah;
161 (j) local government entities;
162 (k) associations of governments;
163 (l) the Utah League of Cities and Towns;
164 (m) the Utah Association of Counties;
165 (n) the Economic Development Corporation of Utah;
166 (o) the Small Business Administration;
167 (p) chambers of commerce;
168 (q) industry associations;
169 (r) small business development centers; and
170 (s) other entities identified by the commission or the executive director.
171 (5) "Executive director" means the executive director of the office.
172 (6) "Full-time employee" means an employment position that is filled by an employee
173 who works at least 30 hours per week and:
174 (a) may include an employment position filled by more than one employee, if each
175 employee who works less than 30 hours per week is provided benefits comparable to a
176 full-time employee; and
177 (b) may not include an employment position that is shifted from one jurisdiction in the
178 state to another jurisdiction in the state.
179 (7) "GO Utah board" means the Business and Economic Development Subcommittee
180 created in Section 63N-1b-202.
181 (8) "High paying job" means a newly created full-time employee position where the
182 aggregate average annual gross wage of the employment position, not including health care or
183 other paid or unpaid benefits, is:
184 (a) at least 110% of the average wage of the county in which the employment position
185 exists; or
186 (b) for an employment position related to a project described in Chapter 2, Part 1,
187 Economic Development Tax Increment Financing, and that is located within the boundary of a
188 county of the third, fourth, fifth, or sixth class, or located within a municipality in a county of
189 the second class and where the municipality has a population of 10,000 or less:
190 (i) at least 100% of the average wage of the county in which the employment position
191 exists; or
192 (ii) an amount determined by rule made by the office in accordance with Title 63G,
193 Chapter 3, Utah Administrative Rulemaking Act, if the office determines the project is in a
194 county experiencing economic distress.
195 (9) (a) "Incremental job" means a full-time employment position in the state that:
196 (i) did not exist within a business entity in the state before the beginning of a project
197 related to the business entity; and
198 (ii) is created in addition to the number of baseline jobs that existed within a business
200 (b) "Incremental job" includes a full-time employment position where the employee is
202 (i) directly by a business entity; or
203 (ii) by a professional employer organization, as defined in Section 31A-40-102, on
204 behalf of a business entity.
205 (10) "New state revenue" means the state revenue collected from a business entity or a
206 business entity's employees during a calendar year minus the baseline state revenue calculation.
207 (11) "Office" or "GO Utah office" means the Governor's Office of Economic
209 (12) "State revenue" means state tax liability paid by a business entity or a business
210 entity's employees under any combination of the following provisions:
211 (a) Title 59, Chapter 7, Corporate Franchise and Income Taxes;
212 (b) Title 59, Chapter 10, Part 1, Determination and Reporting of Tax Liability and
214 (c) Title 59, Chapter 10, Part 2, Trusts and Estates;
215 (d) Title 59, Chapter 10, Part 4, Withholding of Tax; and
216 (e) Title 59, Chapter 12, Sales and Use Tax Act.
217 (13) "State strategic goals" means the strategic goals listed in Section 63N-1a-103.
218 (14) "Statewide economic development strategy" means the economic development
219 strategy developed by the commission in accordance with Section 63N-1a-202.
220 (15) "Targeted industry" means an industry or group of industries targeted by the
221 commission under Section 63N-1a-202, for economic development in the state.
222 Section 3. Section 63N-1a-202 is amended to read:
223 63N-1a-202. Commission duties.
224 (1) The commission shall:
225 (a) develop, coordinate, and lead a comprehensive statewide economic development
226 strategy that:
227 (i) unifies and coordinates economic development efforts in the state;
228 (ii) includes key performance indicators for long-term progress toward the state
229 strategic goals;
230 (iii) establishes reporting and accountability processes for the key performance
231 indicators; and
232 (iv) ensures the success of the statewide economic development strategy is shared
233 among the urban and rural areas of the state;
234 (b) receive feedback, input, and reports from economic opportunity agencies regarding
235 programs related to the statewide economic development strategy;
236 (c) develop the statewide economic strategy in view of the state water policy described
237 in Section 73-1-21, including the state's commitment to appropriate conservation, efficient and
238 optimal use of water resources, infrastructure development and improvement, optimal
239 agricultural use, water quality, reasonable access to recreational activities, effective wastewater
240 treatment, and protecting and restoring healthy ecosystems;
241 (d) direct and facilitate changes to or recommend elimination of economic
242 development programs to ensure alignment with the mission and vision described in Section
244 (e) at least once every five years, identify [
246 industries shall be targeted for economic development in the state;
247 (f) establish strategies for the recruitment and retention of targeted [
248 industries while respecting the different needs of rural and urban areas throughout the state;
249 (g) establish strategies for supporting entrepreneurship and small business development
250 in the state;
251 (h) analyze the state's projected long-term population and economic growth and plan
252 for the anticipated impacts of the projected growth in a manner that improves quality of life
253 and is consistent with the statewide economic development strategy and state strategic goals;
254 (i) identify gaps and potential solutions related to improving infrastructure, especially
255 as related to the state's projected long-term population growth;
256 (j) support the development of a prepared workforce that can support [
258 (k) coordinate and develop strategies that assist education providers and industry to
259 cooperate in supporting students in developing market relevant skills to meet industry needs;
260 (l) develop strategies and plans to ensure comprehensive economic development efforts
261 are targeted to the unique needs of rural areas of the state;
262 (m) study the unique needs of multicultural communities throughout the state and
263 develop household-level plans to ensure residents of the state can participate in economic
264 opportunities in the state;
265 (n) ensure the commission's efforts are, to the extent practicable, data-driven and
267 (o) support an integrated international trade strategy for the state;
268 (p) facilitate coordination among public, private, and nonprofit economic opportunity
269 agencies; and
270 (q) in performing the commission's duties, consider the recommendations of the
271 subcommittees described in Chapter 1b, Commission Subcommittees.
272 (2) The commission shall provide a report to the office for inclusion in the office's
273 annual written report described in Section 63N-1a-306, that includes:
274 (a) the statewide economic development strategy;
275 (b) a description of how the commission fulfilled the commission's statutory purposes
276 and duties during the year, including any relevant findings;
277 (c) the key performance indicators included in the statewide economic development
278 strategy, including data showing the extent to which the indicators are being met; and
279 (d) any legislative recommendations.
280 Section 4. Section 63N-1a-301 is amended to read:
281 63N-1a-301. Creation of office -- Responsibilities.
282 (1) There is created the Governor's Office of Economic Opportunity.
283 (2) The office is:
284 (a) responsible for implementing the statewide economic development strategy
285 developed by the commission; and
286 (b) the industrial and business promotion authority of the state.
287 (3) The office shall:
288 (a) consistent with the statewide economic development strategy, coordinate and align
289 into a single effort the activities of the economic opportunity agencies in the field of economic
291 (b) provide support and direction to economic opportunity agencies in establishing
292 goals, metrics, and activities that align with the statewide economic development strategy;
293 (c) administer and coordinate state and federal economic development grant programs;
294 (d) promote and encourage the economic, commercial, financial, industrial,
295 agricultural, and civic welfare of the state;
296 (e) promote and encourage the employment of workers in the state and the purchase of
297 goods and services produced in the state by local businesses;
298 (f) act to create, develop, attract, and retain business, industry, and commerce in the
299 state, in accordance with the statewide economic development plan and commission directives;
300 (g) act to enhance the state's economy;
301 (h) act to assist strategic industries that are likely to drive future economic growth;
302 (i) assist communities in the state in developing economic development capacity and
303 coordination with other communities;
304 (j) identify areas of education and workforce development in the state that can be
305 improved to support economic and business development;
306 (k) consistent with direction from the commission, develop core strategic priorities for
307 the office, which may include:
308 (i) enhancing statewide access to entrepreneurship opportunities and small business
310 (ii) focusing industry recruitment and expansion [
311 targeted industries;
312 (iii) ensuring that in awarding competitive economic development incentives the office
313 accurately measures the benefits and costs of the incentives; and
314 (iv) assisting communities with technical support to aid those communities in
315 improving economic development opportunities;
316 (l) submit an annual written report as described in Section 63N-1a-306; and
317 (m) perform other duties as provided by the Legislature.
318 (4) In order to perform its duties under this title, the office may:
319 (a) enter into a contract or agreement with, or make a grant to, a public or private
320 entity, including a municipality, if the contract or agreement is not in violation of state statute
321 or other applicable law;
322 (b) except as provided in Subsection (4)(c), receive and expend funds from a public or
323 private source for any lawful purpose that is in the state's best interest; and
324 (c) solicit and accept a contribution of money, services, or facilities from a public or
325 private donor, but may not use the contribution for publicizing the exclusive interest of the
327 (5) Money received under Subsection (4)(c) shall be deposited [
328 Fund as dedicated credits of the office.
329 (6) (a) The office shall:
330 (i) obtain the advice of the GO Utah board before implementing a change to a policy,
331 priority, or objective under which the office operates; and
332 (ii) provide periodic updates to the commission regarding the office's efforts under
333 Subsections (3)(a) and (b).
334 (b) Subsection (6)(a)(i) does not apply to the routine administration by the office of
335 money or services related to the assistance, retention, or recruitment of business, industry, or
336 commerce in the state.
337 Section 5. Section 63N-2-102 is amended to read:
338 63N-2-102. Purpose.
339 This part is enacted to:
340 (1) foster and develop [
342 and to [
346 (2) create high paying employment opportunities in the state;
347 (3) provide tax credits to attract new commercial projects and new jobs in economic
348 development zones in the state; and
349 (4) provide a cooperative and unified working relationship between state and local
350 economic development efforts.
351 Section 6. Section 63N-2-103 is amended to read:
352 63N-2-103. Definitions.
353 As used in this part:
361 with the office to initiate a new commercial project in Utah that will qualify the person to
362 receive a tax credit under Section 59-7-614.2 or 59-10-1107.
363 (b) With respect to a tax credit authorized by the office in accordance with Subsection
365 (2) "Commercial or industrial zone" means an area zoned agricultural, commercial,
366 industrial, manufacturing, business park, research park, or other appropriate business related
367 use in a general plan that contemplates future growth.
371 Section 63N-2-104.
390 (4) "Local government entity" means a county, city, town, or metro township.
391 (5) "New commercial project" means an economic development opportunity that:
392 (a) involves a targeted industry;
393 (b) is located within:
394 (i) a county of the third, fourth, fifth, or sixth class; or
395 (ii) a municipality that has a population of 10,000 or less and the municipality is
396 located within a county of the second class; or
397 (c) involves an economic development opportunity that the commission determines to
398 be eligible for a tax credit under this part.
399 (6) "Remote work opportunity" means a new commercial project that:
400 (a) does not require a physical office in the state where employees associated with the
401 new commercial project are required to work; and
402 (b) requires employees associated with the new commercial project to:
403 (i) work remotely from a location within the state; and
404 (ii) maintain residency in the state.
407 fixtures related to a new commercial project that represents an expansion of existing operations
408 in the state or that increases the business entity's existing workforce in the state[
419 59-7-614.2 or 59-10-1107.
421 credit certificate for a taxable year.
423 (a) lists the name of the business entity[
425 (b) lists the business entity's[
427 (c) lists the amount of tax credit that the office authorizes the business entity[
429 (d) may include other information as determined by the office.
430 (11) "Written agreement" means a written agreement entered into between the office
431 and a business entity under Section 63N-2-104.2.
432 Section 7. Section 63N-2-104 is amended to read:
433 63N-2-104. Creation of economic development zones.
434 (1) The office may create an economic development zone in the state if the following
435 requirements are satisfied:
441 (a) the area is located within a commercial or industrial zone;
442 (b) the local government entity having jurisdiction over the area supports the creation
443 of the development zone; and
444 (c) the local government entity described in Subsection (1)(b) provides or commits to
445 provide local incentives [
446 accordance with the [
448 (2) A local government entity may, for the purpose of incentivizing new commercial
449 projects within the local government entity's boundaries, create an economic development zone
450 if the following requirements are satisfied:
451 (a) the area is located:
452 (i) within a commercial or industrial zone; and
453 (ii) within the geographic boundaries of the local government entity;
454 (b) the local government entity adopts a long-term plan that addresses the following
455 planning elements within the area:
456 (i) transportation and infrastructure;
457 (ii) workforce development; and
458 (iii) housing needs; and
459 (c) the office approves the local government entity's request to create the development
550 Section 8. Section 63N-2-104.1 is enacted to read:
551 63N-2-104.1. Eligibility for tax credit -- Economic impact study.
552 (1) The office shall certify a business entity's eligibility for a tax credit as provided in
553 this section.
554 (2) A business entity is eligible to receive a tax credit for a new commercial project if:
555 (a) the new commercial project:
556 (i) (A) is located and provides direct investment within the geographic boundaries of a
557 development zone; or
558 (B) creates a remote work opportunity;
559 (ii) includes the creation of high paying jobs in the state, significant capital investment
560 in the state, or significant purchases from vendors, contractors, or service providers in the state,
561 or a combination of these three economic factors; and
562 (iii) generates new state revenues; and
563 (b) the business entity has not claimed a High Cost Infrastructure Development Tax
564 Credit under Section 79-6-603 for the same new commercial project.
565 (3) The office shall conduct a study of the economic impacts associated with a new
566 commercial project to determine whether a business entity meets the requirements of
567 Subsection (2).
568 (4) In determining whether a new commercial project meets the requirements of
569 Subsection (2)(a)(ii), the office may attribute an incremental job or a high paying job to a new
570 commercial project regardless of whether the job is performed in person, within a development
571 zone, or remotely from elsewhere in the state.
572 Section 9. Section 63N-2-104.2 is enacted to read:
573 63N-2-104.2. Written agreement -- Contents -- Grounds for amendment or
575 (1) If the office determines that a business entity is eligible for a tax credit under
576 Section 63N-2-104.1, the office may enter into a written agreement with the business entity
578 (a) establishes performance benchmarks for the business entity to claim a tax credit,
579 including any minimum wage requirements;
580 (b) specifies the maximum amount of tax credit that the business entity may be
581 authorized for a taxable year and over the life of the new commercial project, subject to the
582 limitations in Section 63N-2-104.3;
583 (c) establishes the length of time the business entity may claim a tax credit;
584 (d) requires the business entity to retain records supporting a claim for a tax credit for
585 at least four years after the business entity claims the tax credit;
586 (e) requires the business entity to submit to audits for verification of any tax credit
587 claimed; and
588 (f) requires the business entity, in order to claim a tax credit, to meet the requirements
589 of Section 63N-2-105.
590 (2) In establishing the terms of a written agreement, including the duration and amount
591 of tax credit that the business entity may be authorized to receive, the office shall:
592 (a) authorize the tax credit in a manner that provides the most effective incentive for
593 the new commercial project;
594 (b) consider the following factors:
595 (i) whether the new commercial project provides vital or specialized support to supply
597 (ii) whether the new commercial project provides an innovative product, technology, or
599 (iii) the number and wages of new incremental jobs associated with the new
600 commercial project;
601 (iv) the amount of financial support provided by local government entities for the new
602 commercial project;
603 (v) the amount of capital expenditures associated with the new commercial project;
604 (vi) whether the new commercial project returns jobs transferred overseas;
605 (vii) the rate of unemployment in the county in which the new commercial project is
607 (viii) whether the new commercial project creates a remote work opportunity;
608 (ix) whether the new commercial project is located in a development zone created by a
609 local government entity as described in Subsection 63N-2-104(2);
610 (x) whether the business entity commits to hiring Utah workers for the new
611 commercial project;
612 (xi) whether the business entity adopts a corporate citizenry plan or supports initiatives
613 in the state that advance education, gender equality, diversity and inclusion, work-life balance,
614 environmental or social good, or other similar causes;
615 (xii) whether the business entity's headquarters are located within the state;
616 (xiii) the likelihood of other business entities relocating to another state as a result of
617 the new commercial project;
618 (xiv) the necessity of the tax credit for the business entity's expansion in the state or
619 relocation from another state; and
620 (xv) the location and impact of the new commercial project on existing and planned
621 transportation facilities, existing and planned housing, including affordable housing, and public
622 infrastructure; and
623 (c) consult with the GO Utah board.
624 (3) (a) In determining the amount of tax credit that a business entity may be authorized
625 to receive under a written agreement, the office may:
626 (i) authorize a higher or optimized amount of tax credit for a new commercial project
627 located within a development zone created by a local government entity as described in
628 Subsection 63N-2-104(2); and
629 (ii) establish by rule made in accordance with Title 63G, Chapter 3, Utah
630 Administrative Rulemaking Act, a process by which the office closely approximates the
631 amount of taxes the business entity paid under Title 59, Chapter 12, Sales and Use Tax Act, for
632 a capital project.
633 (b) The office may apply a process described in Subsection (3)(a)(ii) to a business
634 entity only with respect to a new or amended written agreement that takes effect on or after
635 January 1, 2022.
636 (4) If the office identifies any of the following events after entering into a written
637 agreement with a business entity, the office and the business entity shall amend, or the office
638 may terminate, the written agreement:
639 (a) a change in the business entity's organization resulting from a merger with or
640 acquisition of another entity located in the state;
641 (b) a material increase in the business entity's retail operations that results in new state
642 revenue not subject to the incentive; or
643 (c) an increase in the business entity's operations that:
644 (i) is outside the scope of the written agreement or outside the boundaries of a
645 development zone; and
646 (ii) results in new state revenue not subject to the incentive.
647 Section 10. Section 63N-2-104.3 is enacted to read:
648 63N-2-104.3. Limitations on tax credit amount.
649 (1) Except as provided in Subsection (2)(a), for a new commercial project that is
650 located within the boundary of a county of the first or second class, the office may not
651 authorize a tax credit that exceeds:
652 (a) 50% of the new state revenues from the new commercial project in any given year;
653 (b) 30% of the new state revenues from the new commercial project over the lesser of
654 the life of a new commercial project or 20 years; or
655 (c) 35% of the new state revenues from the new commercial project over the lesser of
656 the life of a new commercial project or 20 years, if:
657 (i) the new commercial project brings 2,500 or more new incremental jobs to the state;
658 (ii) the amount of capital expenditures associated with the new commercial project is
659 $1,000,000,000 or more; and
660 (iii) the commission approves the tax credit.
661 (2) If the office authorizes a tax credit for a new commercial project located within the
662 boundary of:
663 (a) a municipality with a population of 10,000 or less located within a county of the
664 second class and that is experiencing economic hardship as determined by the office, the office
665 shall authorize a tax credit of up to 50% of new state revenues from the new commercial
666 project over the lesser of the life of the new commercial project or 20 years;
667 (b) a county of the third class, the office shall authorize a tax credit of up to 50% of
668 new state revenues from the new commercial project over the lesser of the life of the new
669 commercial project or 20 years; and
670 (c) a county of the fourth, fifth, or sixth class, the office shall authorize a tax credit of
671 50% of new state revenues from the new commercial project over the lesser of the life of the
672 new commercial project or 20 years.
673 Section 11. Section 63N-2-105 is amended to read:
674 63N-2-105. Requirements for claiming tax credit -- Application for tax credit
675 certificate -- Procedure.
678 (1) A business entity may claim a tax credit under this part if the office:
679 (a) determines that the business entity is eligible for a tax credit under Section
681 (b) enters into a written agreement with the business entity in accordance with Section
682 63N-2-104.2; and
683 (c) issues a tax credit certificate to the business entity in accordance with this section.
684 (2) A business entity [
686 (a) an application for a tax credit certificate, including a certification, by an officer of
687 the business entity, of any signature on the application;
688 (b) [
689 business entity's new commercial project that were paid during a calendar year; [
693 (c) known or expected detriments to the state or existing businesses in the state;
700 disclose to the office the business entity's returns and other information that would otherwise
701 be subject to confidentiality under Section 59-1-403 or Section 6103, Internal Revenue Code;
704 Workforce Services to disclose to the office the business entity's unemployment insurance
705 contribution reports that would otherwise be subject to confidentiality under Section
706 35A-4-312; and
707 (f) documentation that the business entity has satisfied the performance benchmarks
708 outlined in the written agreement.
752 (3) (a) (i) The office shall submit the [
755 State Tax Commission shall provide the office with the returns and other information requested
756 by the office that the State Tax Commission is directed or authorized to provide to the office in
757 accordance with Subsection [
758 (b) (i) The office shall submit the document described in Subsection (2)(e) to the
759 Department of Workforce Services.
760 (ii) Upon receipt of the document described in Subsection (2)(e), the Department of
761 Workforce Services shall provide the office with the information that the Department of
762 Workforce Services is directed or authorized to provide to the office in accordance with
763 Subsection (2)(e).
764 (4) If the returns and other information provided under Subsections (2) and (3) provide
765 the office with a reasonable justification for authorizing or continuing a tax credit, the office
767 (a) determine the amount of the tax credit to be granted to the business entity,
768 consistent with the terms of the written agreement;
769 (b) issue a tax credit certificate to the business entity; and
770 (c) provide a digital record of the tax credit certificate to the State Tax Commission.
818 (b) A business entity[
819 that claims a tax credit under this section shall retain the tax credit certificate in accordance
820 with Section 59-7-614.2 or 59-10-1107.
821 Section 12. Section 63N-2-107 is amended to read:
822 63N-2-107. Reports of new state revenues, partial rebates, and tax credits.
823 (1) Before October 1 of each year, the office shall submit a report to the Governor's
824 Office of Planning and Budget, the Office of the Legislative Fiscal Analyst, and the Division of
825 Finance identifying:
826 (a) (i) the total estimated amount of new state revenues created from new commercial
827 projects [
828 (ii) the estimated amount of new state revenues from new commercial projects [
830 (A) sales tax;
831 (B) income tax; and
832 (C) corporate franchise and income tax; and
833 (iii) the minimum number of new incremental jobs and high paying jobs that will be
834 created before any tax credit is awarded; and
835 (b) the total estimated amount of tax credits that the office projects that business
837 under this part.
838 (2) By the first business day of each month, the office shall submit a report to the
839 Governor's Office of Planning and Budget, the Office of the Legislative Fiscal Analyst, and the
840 Division of Finance identifying:
841 (a) each new written agreement that the office entered into [
843 (b) the estimated amount of new state revenues that will be generated under each
844 written agreement described in Subsection (2)(a);
845 (c) the estimated maximum amount of tax credits that a business entity[
847 agreement described in Subsection (2)(a); and
848 (d) the minimum number of new incremental jobs and high paying jobs that will be
849 created before any tax credit is awarded.
850 (3) At the reasonable request of the Governor's Office of Planning and Budget, the
851 Office of the Legislative Fiscal Analyst, or the Division of Finance, the office shall provide
852 additional information about the tax credit, new incremental jobs and high paying jobs, costs,
853 and economic benefits related to this part, if the information is part of a public record as
854 defined in Section 63G-2-103.
855 (4) By June 30, the office shall submit to the Economic Development and Workforce
856 Services Interim Committee, the Business, Economic Development, and Labor Appropriations
857 Subcommittee, and the governor, a written report that provides an overview of the
858 implementation and efficacy of the statewide economic development strategy, including an
859 analysis of the extent to which the office's programs are aligned with the prevailing economic
860 conditions expected in the next fiscal year.
861 Section 13. Section 63N-2-110 is enacted to read:
862 63N-2-110. Rulemaking authority.
863 The office may make rules in accordance with Title 63G, Chapter 3, Utah
864 Administrative Rulemaking Act, as necessary to administer this part.
865 Section 14. Section 63N-3-102 is amended to read:
866 63N-3-102. Definitions.
867 As used in this part:
868 (1) "Administrator" means the executive director or the executive director's designee.
869 (2) "Economic opportunities" means unique business situations or community
870 circumstances, including the development of recreation infrastructure and the promotion of the
871 high tech sector in the state, which lend themselves to the furtherance of the economic interests
872 of the state by providing a catalyst or stimulus to the growth or retention, or both, of commerce
873 and industry in the state, including retention of companies whose relocation outside the state
874 would have a significant detrimental economic impact on the state as a whole, regions of the
875 state, or specific components of the state as determined by the GO Utah board.
876 (3) "Restricted Account" means the restricted account known as the Industrial
877 Assistance Account created in Section 63N-3-103.
881 Section 15. Section 63N-3-111 is amended to read:
882 63N-3-111. Annual policy considerations.
886 governments, the governor, and the Legislature regarding policies and initiatives that promote
887 the economic development of targeted industries.
889 include public and private stakeholders to solicit input on policy guidance and best practices in
890 encouraging the economic development of targeted industries.
891 (2) In evaluating the economic impact of applications for assistance, the GO Utah
892 board shall use an econometric cost-benefit model.
893 (3) The GO Utah board may establish:
894 (a) minimum interest rates to be applied to loans granted that reflect a fair social rate of
895 return to the state comparable to prevailing market-based rates such as the prime rate, U.S.
896 Government T-bill rate, or bond coupon rate as paid by the state, adjusted by social indicators
897 such as the rate of unemployment; and
898 (b) minimum applicant expense ratios, as long as they are at least equal to those
899 required under Subsection 63N-3-105(1)(b).
900 Section 16. Repealer.
901 This bill repeals:
902 Section 63N-2-108, Expenditure of amounts received by a local government entity
903 or community reinvestment agency as a tax credit -- Commingling of tax credit amounts
904 with certain other amounts.
905 Section 17. Effective date.
906 This bill takes effect on May 4, 2022, except that the amendments to Section
907 59-7-614.2 in this bill take effect for a taxable year beginning on or after January 1, 2022.