Utah Governor’s Office of Economic Development

Rural Development Grant

The purpose of this grant is to further economic development in rural areas in Utah.  Rural areas are defined as counties having a total population under 30,000 and an average annual household income under $60,000.

No deadlines for grant applications.

Rural Development Grant Application

Rural Fast Track Program

The Rural Fast Track (RFT) Program is a post-performance grant available to small companies in rural Utah.  The program provides an efficient way for existing, small companies to receive incentives for creating high paying jobs in the rural areas of the state and to further promote business and economic development.

Rural Fast Track Application

Business Incentives

Enterprise Zones

The Utah Enterprise Zone Program was established in 1988. An enterprise zone comprises an area identified by local elected and economic development officials and designated by the state. Under the program, certain types of businesses locating to, or expanding in a designated zone may claim state income tax credits provided in the law.

Recycling Market Development Zones

In 1996, the Utah Legislature created the Utah Recycling Market Development Zone Program which focuses on recycling as an economic development tool.  As more products are recycled and used to manufacture new products the economy will be stimulated through new company expansion or formation and the creation of additional jobs. The zone legislation was established to incent businesses to use recycled materials in their manufacturing processes and create new products for sale.  It also benefits business or individuals that collect, process, distribute recycled materials.  Composting is considered to be eligible recycling operation.

Economic Development Tax Increment Financing (EDTIF)

Approved in 2005, EDTIF is a state incentive program that allows local governments to create "economic development zones" in order to encourage job creation and capital investment.  New or existing businesses creating new jobs or significant capital investment within these zones may apply for a partial rebate (30%) for up to 20 years of taxes paid to the state.  The rebate may apply to "new state income" generated by the job growth or capital investment, including the payroll tax of the new employees, corporate income tax, and sales tax.  Qualifying companies must create new jobs paying at least the median state wage.  All EDTIF incentives are evaluated and approved by the Governor's Office of Economic Development Board. (Section 63-38f-1304)

Utah Aerospace and Aviation Tax Increment Financing (AATIF) program was created to encourage the growth of the aerospace and aviation manufacturing industry in Utah.  Companies creating new aerospace and aviation manufacturing jobs in Utah may apply for a partial rebate (30%) for up to 20 years on state revenues.  The rebate may apply to "new state income" generated by the job growth or capital investment, including the payroll tax of the new employees, corporate income tax, and sales tax.  Carbon County Airport is certified to participate in AATIF.  Qualifying companies must create new jobs paying at least the median state wage.  All EDTIF incentives are evaluated and approved by the Governor's Office of Economic Development Board.

Research Tax Credits

Provides an income tax credit of up to 6% of a taxpayer's Qualified Research Expenses for the tax year in excess of the Taxpayer's Base Amount.  The definitions are the same as defined in the Internal Revenue Code, Section 41(c-g) (Utah Code Section 59-10-132)

Sales and Use Tax Exemptions

Manufacturers (SIC 200-3999) are exempt from paying sales tax on the purchase of new equipment.  The purchase of replacement manufacturing equipment is also exempt from sale tax.  Previously paid sales tax can possibly be refunded.  This amounts to a 6%+ cost savings.

Custom Fit Training

The Custom Fit Program provides training for new or expanding companies.  A Custom Fit representative will discuss with the company the training needs anticipated and then develop a specific customized training plan to meet those needs.  The required training can take place at a variety of locations including the business or a local institution.  Often training is provided in both locations.  The program is designed to be flexible to meet the specific needs of the company.

Short Term Intensive Training (STIT)

STIT programs are customized and designed to meet full-time job openings.  Programs are usually less than one year in length and will be designed to meet the specific training needs of a company while matching needs with people seeking employment.  STIT gives the option of training at 50%-70% discount of normal training costs.

Industrial Assistance Fund (IAF)

The State Industrial Assistance Fund (IAF) that can be used for relocation costs.  This incentive can be earned as Utah jobs created meet the IAF requirements resulting in higher quality jobs, and as Utah purchases.  Two programs are applicable: 1) rural Utah program with funding up to $100,000 for relocation expenses; IAF will pay employee moving costs to disadvantaged areas outside the Wasatch Front, St. George, or Cedar City and 2) Corporate Funding which is dependent on the amount of Utah purchases and wages.

Industrial Development Bond Guidelines

Industrial Development Bonds (IDB's) are a financing tool used by private sector developers for manufacturing facilities.  The applicant must meet federal guidelines; however, the State of Utah has no additional requirements.  The federal tax code places a limit of $10.0 million per project on IDB financing.  The Internal Revenue Code also specifies that the sum of all other IDBs used by the developer cannot exceed $40 million nation-wide.  95% of bond proceeds must be used for manufacturing facilities.  The end purchaser of an Industrial Development Bond does not pay Federal Income Tax; consequently, the savings passed through may result in lower cost of money to the company.

Job Service

The local Job Service office utilizes a computerized job matching system that quickly screens applicants to ensure that they meet the qualifications set by a company.