R357-3-106. Economic Development Tax Credit Process

  (1) All annual tax credits shall be based on actual incremental taxes paid by the business entity or withheld on behalf of employees of a new commercial project.

  (2) GOED shall propose a tax credit structure based on the factors set forth in this rule in a combination GOED deems the most effective and beneficial in weighing the benefits of the State, local community, and company.

  (a) GOED shall propose the tax credit terms and structure to the Board prior to making a final offer to the business entity.

  (3) If the Executive Director approves an Economic Development Tax Credit, GOED shall provide a tax credit offer letter to a business entity that includes:

  (a) the proposed terms of the Economic Development Tax Credit, including the maximum amount of aggregate annual tax credits and the time period over which the Tax Credits may be claimed;

  (b) a statement that the company must demonstrate sufficient growth and supply; and

  (c) documentation that will be required each incentive year in order to claim a tax credit for the following tax year.

  (4) If the applicant intends to accept the incentive offer, it shall counter-execute the tax credit offer letter.

  (5) If the Executive Director denies an application for an Economic Development Tax Credit, GOED shall provide a letter to the business entity that includes:

  (a) notice of the application denial;

  (b) reason for denial; and

  (c) notice that the business entity can reapply for a tax credit if changes to the proposed new commercial project are made.

  (6) GOED will establish a baseline with the company that consists of the count of full-time employees and state revenue reflective of presence in the state prior to board approval date. Basline must be established prior to awarding a tax credit.

  (7) A company with an active contract, who desires a tax credit, must provide an annual report for the incentive year in the format and method as directed by GOED, with a level of accuracy comparable with information GOED obtains from the Department of Workforces Services and the Tax Commission, that at a minimum must contain:

  (a) a list of all individuals in Utah that received compensation at the company and/or project with their position, start date, termination date, hours paid, wages paid, benefits paid and employer withholding taxes paid or an aggregate list that provides qualification and legislative reporting required for 63N-2-106, as determined GOED.

  (b) the requested amount of tax revenue to be rebated from withholding, sales and use, vendor paid sales tax and income tax verified as paid, remitted and receipted to the state.