Enterprise Zone Tax Credit

Enterprise Zone Tax Credit

Provides Enterprise Zone tax credits in Utah to support capital investment and job creation in rural designated zones.

Utah's Enterprise Zone Tax Credit is a non-refundable state tax incentive administered by the Governor's Office of Economic Opportunity (GOEO) that rewards businesses for locating or expanding in designated rural enterprise zones. The program is statutory and was created to stimulate capital investment and job creation in areas of the state outside major urban centers. All Enterprise Zone designations have now expired, and the program is winding down: the 2026 application cycle accepts only Capital Investment and Employee Credit applications covering the 2023 and 2024 tax years, with a full program sunset in 2027.

Eligible applicants are for-profit businesses expanding or relocating to a designated enterprise zone, excluding retail, public utilities, and construction. Two primary credit streams apply. The New Jobs Credit awards $750 per new full-time position (up to 30 per year), with bonuses of $500 if wages reach 125% of county average, $750 for agricultural value-added manufacturing, and $200 per employee receiving employer-sponsored health insurance. The Capital Investment Credit provides a 25% credit on the first $200,000 spent rehabilitating buildings vacant for at least two years, and a 5% annual credit on the first $750,000 of plant and equipment investment. Credits carry over for up to three years but are not refundable against other tax liabilities.

Because the program is in wind-down mode with no new zone designations being issued, businesses considering this incentive must already operate in a previously designated enterprise zone and have unclaimed credits from the 2023 or 2024 tax years. Applications are submitted to GOEO. Businesses should act before the 2026 cycle closes, as no further application periods are expected. Retailers, public utilities, and construction companies are explicitly excluded. Companies relocating from one rural area to another in a way that reduces existing employment at the origin site are also ineligible.