R357-15-5. Application Review and Authorization Process for an Enterprise Zone Tax Credit

  (1) The Office shall review all submitted applications within a reasonable amount of time and approve or deny the application

  (a) The Office shall review all tax credits claimed and documentation provided.

  (b) The Office may request additional documentation or information if the Office determines that further verification is required.

  i. Failure to comply with a request for additional documentation may result in a denial of the application.

  (2) The Office will issue tax credit certificates for all tax credits for which an applicant has applied, qualified and been approved by the Office.

  (a) This Office may issue a partial approval if only parts of the application are determined to qualify.

  (3) The Office must provide written notice that includes its reasoning when denying any or a portion of a tax credit application.

  (4) If approved in whole or in part, the Office shall provide any necessary documents and instructions, approved by the Utah Tax Commission, for claiming the tax credit.

  (5)(a) When a business entity is seeking to receive a tax credit for the purchase of a qualified business use vehicle, in conformity with Subsection 63N-2-213(7)(f), the office shall not grant a tax credit for the trade-in value of a qualified business use vehicle that the business entity traded into the purchase of the vehicle for which the tax credit is being sought.

  (b) The amount claimed towards investment in a qualified business use vehicle or a motor vehicle described in subsection R357-15-4(3)(b)(v)is determined as acquisition cost, less any trade in value in accordance with subsection R357-15-5(5), multiplied by the business use percentage.

  (6) The trade in value in a purchase may be claimed towards a state tax credit for private capital investment that is qualifying investment in plant, equipment, or other depreciable property when, in the purchase that qualifies as investment by the business entity, there was traded in:

  (a) plant, equipment, or other depreciable property that qualifies for depreciation on IRS Form 4562 and is not a qualified business use vehicle;

  (b) a qualified business use vehicle that was traded in by an individual who is an owner or officer of the applying business entity; or

  (c) a building, property, or other real estate investment that qualifies for depreciation on IRS Form 4562.

  (6) The Office may deny claims of investment for software purchases that are cloud services or software as a service.

  (7) The Office may deny claims for investment purchased prior to the three previous taxable years.

  (8) The Office may deny claims for Investments purchased from another entity with the same ownership.

  (9) The Office may deny claims if the only connection to an enterprise zone for a business entity is a P.O. Box.

  (10) The Office may deny claims for investment that was transferred from personal use to business use unless the original investment and personal use occurred within the same taxable year the asset was placed into service by the applying business entity.

  (11) The Office may deny claims for state tax credits under Subsections 63N-2-213(7)(a)-(f) if 51% of a business entity's employees that are employed at facilities, that are within a designated enterprise zone, of a business entity do not reside within the county in which the enterprise zone is located or an enterprise zone that is immediately adjacent or contiguous to the county in which the enterprise zone is located as per section 63N-2-212.