Press Release
Recently, the Utah Governors Office of Economic Development hosted a meeting to describe and promote the Target Business Income Tax Credit for local ventures.
It is a refundable credit that is available to businesses providing a community investment project that includes one or more of the following criteria in addition to the normal operations of the business:
• Substantial new employment.
• New capital development or a combination of substantial new employment and new capital development.
For more information on the actual parameters of the program, businesses can look up Utah Code Sections 63N-2-302 and 63N-2-304.
Any business applicant claiming this credit must file an application with the local zone administrator by June 1 of the tax year they intend the credit to be used. The business applicant must do the following.
• Be located in an enterprise zone and a county with a population of less than 25,000, and an unemployment rate at least one percentage point higher than the state average for six months or more of each calendar year.
• Have a facility located in the enterprise zone and in which at least 51 percent of the employees reside.
• Provide a community investment project within the enterprise zone, and a portion of the community investment project during each taxable year for which the credit is claimed.
• The business cannot be engaged in construction, retail trade or public utility activities.
An important aspect of this program is that a business cannot claim this refundable credit in a year that they have claimed or carried forward the non-refundable Enterprise Zone Tax Credit or the non-refundable Recycling Market Development Zones Tax Credit.
When claiming the credit, businesses should complete form TC-40TB, Targeted Business Tax Credit, certified by the Governor’s Office of Economic Development. This form would not be submitted with the tax return but would be held in the businesses files.
The credit should be entered on Utah form TC-40A, Part 5, using code 40.
For more information, contact the Castle Country BEAR program.