{"data":{"id":"us-ut/utah-code-63n-2-104.2","jurisdiction":"us-ut","citation":"Utah Code § 63N-2-104.2","heading":"Written agreement -- Contents -- Grounds for amendment or termination.","body":"(1) If the office determines that a business entity is eligible for a tax credit under Section 63N-2-104.1, the office may enter into a written agreement with the business entity that:\n(a) establishes performance benchmarks for the business entity to claim a tax credit, including any minimum wage requirements;\n(b) specifies the maximum amount of tax credit that the business entity may be authorized for a taxable year and over the life of the new commercial project, subject to the limitations in Section 63N-2-104.3;\n(c) establishes the length of time the business entity may claim a tax credit;\n(d) requires the business entity to retain records supporting a claim for a tax credit for at least four years after the business entity claims the tax credit;\n(e) requires the business entity to submit to audits for verification of any tax credit claimed; and\n(f) requires the business entity, in order to claim a tax credit, to meet the requirements of Section 63N-2-105.\n(2) In establishing the terms of a written agreement, including the duration and amount of tax credit that the business entity may be authorized to receive, the office shall:\n(a) authorize the tax credit in a manner that provides the most effective incentive for the new commercial project;\n(b) consider the following factors:\n(i) whether the new commercial project provides vital or specialized support to supply chains;\n(ii) whether the new commercial project provides an innovative product, technology, or service;\n(iii) the number and wages of new incremental jobs associated with the new commercial project;\n(iv) the amount of financial support provided by local government entities for the new commercial project;\n(v) the amount of capital expenditures associated with the new commercial project;\n(vi) whether the new commercial project returns jobs transferred overseas;\n(vii) the rate of unemployment in the county in which the new commercial project is located;\n(viii) whether the new commercial project creates a remote work opportunity;\n(ix) whether the new commercial project is located in a development zone created by a local government entity as described in Subsection 63N-2-104(2);\n(x) whether the business entity commits to hiring Utah workers for the new commercial project;\n(xi) whether the business entity adopts a corporate citizenry plan or supports initiatives in the state that advance education, gender equality, diversity and inclusion, work-life balance, environmental or social good, or other similar causes;\n(xii) whether the business entity's headquarters are located within the state;\n(xiii) the likelihood of other business entities relocating to another state as a result of the new commercial project;\n(xiv) the necessity of the tax credit for the business entity's expansion in the state or relocation from another state;\n(xv) whether the proposed new commercial project might reasonably be expected to occur in the foreseeable future without the tax credit; and\n(xvi) the location and impact of the new commercial project on existing and planned transportation facilities, existing and planned housing, including affordable housing, and public infrastructure; and\n(c) consult with the GOED board.\n(3) In determining the amount of tax credit that a business entity may be authorized to receive under a written agreement, the office may:\n(a) authorize a higher or optimized amount of tax credit for a new commercial project located within a development zone created by a local government entity as described in Subsection 63N-2-104(2); and\n(b) establish by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, a process by which the office closely approximates the amount of taxes the business entity paid under Title 59, Chapter 12, Sales and Use Tax Act, for a capital project.\n(4) If the office identifies any of the following events after entering into a written agreement with a business entity, the office and the business entity shall amend, or the office may terminate, the written agreement:\n(a) a change in the business entity's organization resulting from a merger with or acquisition of another entity located in the state;\n(b) a material increase in the business entity's retail operations that results in new state revenue not subject to the incentive; or\n(c) an increase in the business entity's operations that:\n(i) is outside the scope of the written agreement or outside the boundaries of a development zone; and\n(ii) results in new state revenue not subject to the incentive.","path":["Title 63N Economic Opportunity Act","Chapter 63N-2 Tax Credit Incentives for Economic Development","Part 63N-2-1 Economic Development Tax Increment Financing"],"source_url":"https://le.utah.gov/xcode/Title63N/Chapter2/63N-2-S104.2.html","current_through":"2026 General Session","vintage":"","retrieved_at":"2026-09-03T11:34:34Z","sha256":"297bf587d0c38408f33a64d5b01d7ebc65cd968bc33dfc205869146b7dbf53fa","source_id":"us-ut","stale":false,"prev":"us-ut/utah-code-63n-2-104.1","next":"us-ut/utah-code-63n-2-104.3"},"notice":"GroundRules: Original legal text. Not legal advice."}