Utah Business Incentives and Where to Start

If your company is weighing a move to Utah or a big expansion here, someone will ask about incentives. The honest short answer is that Utah's main state incentives reward performance after the fact. They are not a check you get for showing up. That shapes how you should plan, and when you should start the conversation.

This post explains how the state programs generally work, based on what the state's own pages and statutes say today, and where to start. It is general information, not tax or legal advice. Talk to your tax advisor and attorney, and confirm current rules with the state, before you rely on any of it.

The big idea: performance first, credit later

Utah's state economic development office, the Governor's Office of Economic Development at business.utah.gov, describes its flagship programs as post-performance tax credits. In a 2021 release, the office put it plainly: Utah "does not provide up-front EDTIF cash incentives". A company first creates the jobs and pays the related state taxes, the state confirms the results, and only then can the company claim a partial credit.

State law points the same way. Utah Code Section 63N-2-107 requires the office to report the minimum number of new jobs that must be created "before any tax credit is awarded."

What that means for you:

• Incentives do not fund your move-in. Your lease, purchase, build-out and hiring costs come first, out of your own budget.
• Nothing is automatic. Awards go through review and approval, and the payout depends on hitting the targets in your agreement.
• Your targets have to be realistic. If the business plan changes, the credit you actually earn can change with it.

How approval works

According to the state's Business Recruitment and Expansion page, the process for its main tax credit programs runs in stages:

1. A pre-application review with the office.
2. A formal application.
3. Review by an incentive committee.
4. A vote by the Economic Opportunity Board in a public meeting, with final sign-off by the office's executive director.

So an incentive is subject to state approval at every step, and the board's vote happens in public. Plan your announcement and your site timeline around that.

The main state programs, in plain English

These are programs the state's page describes today. Rules, eligibility and caps change, so check the official page for current terms rather than relying on this summary.

EDTIF (Economic Development Tax Increment Financing)

• Created by the Utah Legislature in 2005, per the state's page.
• A post-performance, refundable tax credit based on a share of the new state tax revenue your project creates.
• In the state's urban counties, the project must be in one of five targeted industries the page lists: aerospace and defense; fintech; tech (AI, quantum, blockchain); life sciences and healthcare; and energy and minerals.
• New jobs must meet a wage test tied to the county average wage (the page sets the urban test at 110% of the county average).

REDTIF (Rural Economic Development Tax Increment Financing)

• The rural version of EDTIF. The state's page says rural projects can qualify for larger incentives, and targeted industries are preferred but not required.

Industrial Assistance Account (IAA)

• A grant or loan program the page describes as available by invitation only, after the program administrator reviews the request.

A newer condition worth knowing

The state's page says that, starting January 1, 2024, companies in EDTIF and REDTIF must provide 20 hours of community service per new high-paying job per year for the life of the incentive. If you are modeling the value of an award, include the cost of meeting that commitment.

Don't forget the local side

State programs are only part of the picture. Utah Code Section 63N-2-104 ties the creation of an economic development zone to support from the local government, including local incentives under that government's incentive policy. In practice, the city or county where your site sits matters. Local leaders, planning staff and utility providers all play a part in whether a project moves quickly.

That is one reason site selection and incentives should be planned together rather than one after the other.

Where to start

1. Write down your project in numbers you can defend

Before anyone can tell you whether a program fits, you need a rough project profile:

• How many new jobs, and over what period.
• Expected wages for those jobs.
• Capital investment: building, equipment and improvements.
• Timeline: when you need to be operating.
• The other states or locations you are seriously considering.

Keep the numbers honest. Inflated targets can mean a smaller credit later, or none at all.

2. Talk to EDCUtah early

EDCUtah is a statewide economic development organization that works with companies expanding or relocating in Utah. Its expansion page says its corporate expansion services "are free to all clients," and lists help with Utah economic data, custom research, site visit coordination, and incentives and financing options. It is a sensible first call when a project is still taking shape.

3. Go to the source for the programs

The state's Business Recruitment and Expansion page lists the programs, eligibility rules and contact details. Ask program staff directly:

• Does my project fit any program, and which one?
• What are the wage and job thresholds for my county?
• What is the review timeline from first meeting to board vote?
• Does signing a lease, buying property or announcing the project before approval affect eligibility?

That last question matters. Get the answer before you commit to a site.

4. Keep your site search on a parallel track

Incentive review and site selection overlap. The state and local partners will want to know where you plan to locate, and your real estate timeline has deadlines of its own. A tenant or buyer representative can line up sites, keep options open while approvals move, and time commitments so you are not locked in too early. If you are new to that kind of help, here is how tenant representation works. If you are deciding whether to rent, own or build, see lease vs. buy vs. build-to-suit.

Common mistakes to avoid

• Treating an incentive as part of your opening budget. It arrives later, if at all, and only after you perform.
• Announcing too early. Some steps happen in public meetings. Coordinate timing with program staff.
• Committing to a site before asking about eligibility. Ask first.
• Forgetting local partners. City and county support can matter as much as the state program.
• Skipping professional advice. Tax credits interact with your tax position. Bring in your CPA and attorney early.

The bottom line

Utah's main state incentives are earned, not handed out. They are post-performance, subject to state approval, and depend on meeting the job, wage and investment terms in a written agreement. Start with a realistic project profile, call EDCUtah and the state office early, and run your site search alongside the incentive conversation. You can find more on how we help companies search for space on the Utah Site Selection home page.

This article is general information about public programs. It is not tax, legal or financial advice, and it does not promise any incentive or amount.

Start your Utah site search

If you are planning a Utah expansion or relocation, we can help you build a site list that fits your timeline and work alongside your incentive conversations. Call or text 801-664-3370 to talk with Stockton Farnsworth, Utah Associate Broker, Team Utah Commercial, brokered by RE/MAX Associates.

General education only, not legal, tax, investment or appraisal advice. Information is believed reliable but not guaranteed. Written by Stockton Farnsworth, Utah Associate Broker, Team Utah Commercial, brokered by RE/MAX Associates.