63M-1-413 - State tax credits.
63M-1-413. State tax credits.
(1) Subject to the limitations of Subsections (2) through (4), the following nonrefundabletax credits against a tax under Title 59, Chapter 7, Corporate Franchise and Income Taxes, orTitle 59, Chapter 10, Individual Income Tax Act, are applicable in an enterprise zone:
(a) a tax credit of $750 may be claimed by a business entity for each new full-timeposition filled for not less than six months during a given tax year;
(b) an additional $500 tax credit may be claimed if the new position pays at least 125%of:
(i) the county average monthly nonagricultural payroll wage for the respective industry asdetermined by the Department of Workforce Services; or
(ii) if the county average monthly nonagricultural payroll wage is not available for therespective industry, the total average monthly nonagricultural payroll wage in the respectivecounty where the enterprise zone is located;
(c) an additional tax credit of $750 may be claimed if the new position is in a businessentity that adds value to agricultural commodities through manufacturing or processing;
(d) an additional tax credit of $200 may be claimed for two consecutive years for eachnew employee who is insured under an employer-sponsored health insurance program if theemployer pays at least 50% of the premium cost for two consecutive years;
(e) a tax credit of 50% of the value of a cash contribution to a private nonprofitcorporation, except that the credit claimed may not exceed $100,000:
(i) that is exempt from federal income taxation under Section 501(c)(3), InternalRevenue Code;
(ii) whose primary purpose is community and economic development; and
(iii) that has been accredited by the board of directors of the Utah Rural DevelopmentCouncil;
(f) a tax credit of 25% of the first $200,000 spent on rehabilitating a building in theenterprise zone that has been vacant for two years or more; and
(g) an annual investment tax credit of 10% of the first $250,000 in investment, and 5% ofthe next $1,000,000 qualifying investment in plant, equipment, or other depreciable property.
(2) (a) Subject to the limitations of Subsection (2)(b), a business entity claiming a taxcredit under Subsections (1)(a) through (d) may claim the tax credit for 30 full-time employeepositions or less in each of its taxable years.
(b) A business entity that received a tax credit for its full-time employee positions underSubsections (1)(a) through (d) may claim an additional tax credit for a full-time employeeposition under Subsections (1)(a) through (d) if:
(i) the business entity creates a new full-time employee position;
(ii) the total number of full-time employee positions at the business entity is greater thanthe number of full-time employee positions previously claimed by the business entity underSubsections (1)(a) through (d); and
(iii) the total number of tax credits the business entity has claimed for its current taxableyear, including the new full-time employee position for which the claimant, estate, or trust that isa business entity is claiming a tax credit, is less than or equal to 30.
(c) A business entity existing in an enterprise zone on the date of its designation shallcalculate the number of full-time positions based on the average number of employees reportedto the Department of Workforce Services.
(d) Construction jobs are not eligible for the tax credits under Subsections (1)(a) through(d).
(3) If the amount of a tax credit under this section exceeds a business entity's tax liabilityunder this chapter for a taxable year, the amount of the tax credit exceeding the liability may becarried forward for a period that does not exceed the next three taxable years.
(4) (a) If a business entity is located in a county that met the requirements of Subsections63M-1-404(1)(b) and (c) but did not qualify as an enterprise zone prior to January 1, 1998,because the county was located in a metropolitan statistical area in more than one state, thebusiness entity:
(i) shall qualify for tax credits for a taxable year beginning on or after January 1, 1997,but beginning before December 31, 1997;
(ii) may claim a tax credit as described in Subsection (4)(a) in a taxable year beginningon or after January 1, 1997, but beginning before December 31, 1997; and
(iii) may qualify for tax credits for any taxable year beginning on or after January 1,1998, if the county is designated as an enterprise zone in accordance with this part.
(b) If a business entity claims a tax credit under Subsection (4)(a)(ii), the business entity:
(i) may claim the tax credit by filing for the taxable year beginning on or after January 1,1997, but beginning before December 31, 1997:
(A) a return under Title 59, Chapter 7, Corporate Franchise and Income Taxes;
(B) an amended return under Title 59, Chapter 7, Corporate Franchise and Income Taxes;
(C) a return under Title 59, Chapter 10, Individual Income Tax Act; or
(D) an amended return under Title 59, Chapter 10, Individual Income Tax Act; and
(ii) may carry forward the tax credit to a taxable year beginning on or after January 1,1998, in accordance with Subsection (3).
(5) The tax credits under Subsections (1)(a) through (g) may not be claimed by abusiness entity engaged in retail trade or by a public utilities business.
(6) A business entity may not claim or carry forward a tax credit available under this partfor a taxable year during which the business entity has claimed the targeted business income taxcredit available under Section 63M-1-504.
Renumbered and Amended by Chapter 382, 2008 General Session