Utah Governor’s Office of Economic Development

Policy

• Post-performance nonrefundable tax credit of up to 35% of the amount of the investment issued over three years
• The tax credit is issued on an annual basis by the Governor’s Office of Economic Development for
  • Up to 10% of the purchase price of the qualifying ownership interest in the year the qualifying ownership interest is purchased
  • Up to 10% of the purchase price in the second year after the qualifying ownership interest is purchased
  • Up to 15% in the third year after the qualifying ownership interest is purchased

• All eligible investors may apply, no restrictions on investor group size
• Requires a single cash, or other property besides stock or securities, investment in a Utah Small Business on or after August 1, 2011 of at least $25,000
• Investment in Utah Small Business 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
• Not permitted to sell the qualifying investment during any of the taxable years for which the credit is being claimed
• Eligible life sciences establishments, defined by the following NAICS codes: 33911 (Medical Equipment and Supplies Manufacturing), 334510 (Electromedical and Electrotherapeutic Apparatus Manufacturing), 334517 (Irradiation Apparatus Manufacturing)
• Eligible investor or pass-through entity issued common stock or preferred stock by the Utah Small Business
• Own less than 30% of the Utah Small Business as of August 1, 2011
• Tax credit issued on an annual basis after compliance documentation is provided to, and approved by, the Governor’s Office of Economic Development
• No tax credit may exceed $350,000 in any taxable year
• Not permitted to carry forward or carry back
• Not permitted to claim both the tax credit and a capital loss if the Utah Small Business fails, dissolves or otherwise goes out of business
• Through purchase agreement, operating agreements or other means please document your overall investment and percentage ownership of entity
• 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

2007 NAICS Code 33911 Medical Equipment and Supplies Manufacturing

• Establishments primarily engaged in manufacturing medical equipment and supplies such as laboratory apparatus and furniture, surgical and medical instruments, surgical appliances and supplies, dental equipment and supplies, orthodontic goods, dentures, and orthodontic appliances

2007 NAICS Code 334510 Electromedical and Electrotherapeutic Apparatus Manufacturing

• Establishments primarily engaged in manufacturing electromedical and electrotherapeutic apparatus, such as magnetic resonance imaging equipment, medical ultrasound equipment, pacemakers, hearing aids, electrocardiographs, and electromedical endoscopic equipment

2007 NAICS Code 334517 Irradiation Apparatus Manufacturing

• Establishments primarily engaged in manufacturing irradiation apparatus and tubes for applications, such as medical diagnostic, medical therapeutic, industrial, research and scientific evaluation. Irradiation can take the form of beta-rays, gamma-rays, X-rays, or other ionizing radiation

Taxable Year UCA 59-7-101(26)(a)

• The calendar year or the fiscal year ending during such calendar year upon the basis of which the adjusted income is computed
•  In the case of a return made for a fractional part of a year under this chapter or under rules prescribed by the commission, "taxable year" includes the period for which such return is made

Utah Small Business Corporation UCA 59-10-1022

• The aggregate amount of money and other property received by the corporation for stock, as a contribution to capital, and as paid-in surplus, does not exceed $2,500,000
• Has its commercial domicile in Utah