Utah Governor’s Office of Economic Development

Policy

• Post-performance nonrefundable tax credit of up to 5% of capital gain if the gross proceeds of the capital gain transaction result from the sale of the qualifying investment
• All eligible investors may apply, no restrictions on investor group size
• Requires a cash, or other property besides stock or securities, investment in a Utah Small Business on or after August 1, 2011
• Required to hold the investment for at least two taxable years before selling
• Eligible investor or pass-through entity must be issued common stock or preferred stock by the Utah Small Business
• The Utah Small Business in which you are making an investment must be capitalized at under $2,500,000.00 as of August 1, 2011
• Utah Small Business must employ at least 50% of its employees in the State of Utah each day of the taxable year and be domiciled in Utah
• Eligible life sciences establishments, defined by the following NAICS codes: 33911 (Medical Equipment and Supplies Manufacturing), 334510 (Electromedical and Electrotherapeutic Apparatus Manufacturing), and 334517 (Irradiation Apparatus Manufacturing)
• Not permitted to carry forward or carry back
• Please provide offering documents, subscription agreements or other evidence of future capital investment in the eligible Utah Small Business
• Provide letter of support for project from local municipality if the investment involves physical expansion of the business.  To find contact information for your local economic development professional please visit the following website: http://www.edcutah.org/documents/EDDirectory_010411.pdf or call Sherri Martell at (801) 328-8839 or email at smartell@edcutah.org
• Applications will be prioritized and awarded based on recommendations by an independent review committee and approval by the GOED Board