59-7-614.2 - Refundable economic development tax credit.
59-7-614.2. Refundable economic development tax credit.
(1) As used in this section:
(a) "Business entity" means a taxpayer that meets the definition of "business entity" asdefined in Section 63M-1-2403 or 63M-1-2803.
(b) "Community development and renewal agency" is as defined in Section 17C-1-102.
(c) "Local government entity" is as defined in Section 63M-1-2403.
(d) "Office" means the Governor's Office of Economic Development.
(2) Subject to the other provisions of this section, a business entity, local governmententity, or community development and renewal agency may claim a refundable tax credit foreconomic development.
(3) The tax credit under this section is the amount listed as the tax credit amount on thetax credit certificate that the office issues to the business entity, local government entity, orcommunity development and renewal agency for the taxable year.
(4) A community development and renewal agency may claim a tax credit under thissection only if a local government entity assigns the tax credit to the community developmentand renewal agency in accordance with Section 63M-1-2404.
(5) (a) In accordance with any rules prescribed by the commission under Subsection(5)(b), the commission shall make a refund to the following that claim a tax credit under thissection:
(i) a local government entity;
(ii) a community development and renewal agency; or
(iii) a business entity if the amount of the tax credit exceeds the business entity's taxliability for a taxable year.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, thecommission may make rules providing procedures for making a refund to a business entity, localgovernment entity, or community development and renewal agency as required by Subsection(5)(a).
(6) (a) On or before October 1, 2013, and every five years after October 1, 2013, the UtahTax Review Commission shall study the tax credit allowed by this section and makerecommendations to the Revenue and Taxation Interim Committee and the Workforce Servicesand Community and Economic Development Interim Committee concerning whether the taxcredit should be continued, modified, or repealed.
(b) For purposes of the study required by this Subsection (6), the office shall provide thefollowing information to the Utah Tax Review Commission:
(i) the amount of tax credit that the office grants to each business entity, localgovernment entity, or community development and renewal agency for each calendar year;
(ii) the criteria that the office uses in granting a tax credit;
(iii) (A) for a business entity, the new state revenues generated by the business entity forthe calendar year; or
(B) for a local government entity, regardless of whether the local government entityassigns the tax credit in accordance with Section 63M-1-2404, the new state revenues generatedas a result of a new commercial project within the local government entity for each calendar year;
(iv) the information contained in the office's latest report to the Legislature under Section63M-1-2406 or 63M-1-2806; and
(v) any other information that the Utah Tax Review Commission requests.
(c) The Utah Tax Review Commission shall ensure that its recommendations underSubsection (6)(a) include an evaluation of:
(i) the cost of the tax credit to the state;
(ii) the purpose and effectiveness of the tax credit; and
(iii) the extent to which the state benefits from the tax credit.
Amended by Chapter 164, 2010 General Session