The Utah Governor’s Office of Economic Opportunity announced today that Utah-based businesses continued to perform and further invest in the state during the 2024 fiscal year (FY 2024).
The Economic Opportunity office administers the Utah Legislature’s post-performance Economic Development Tax Increment Financing (EDTIF) and Rural Economic Development Tax Increment Financing (REDTIF) program. The program provides a refundable tax credit for businesses performing and creating high-paying jobs in exchange for a temporary reduction in their marginal tax rates. Temporary reductions are up to 30% of new state tax revenues for businesses operating in select targeted industries on the Wasatch Front and Washington County and up to 50% of new state tax revenues for most projects in rural areas. New state tax revenue includes Utah sales, corporate income, and state payroll withholding taxes during a defined period (typically five to 10 years).
Utah’s average capital expenditure per project rose this fiscal year compared to typical years due to increased investments in strategically targeted industries such as Aerospace and Defense, Information Technology, and Advanced Manufacturing. From July 2023 to June 2024, 20 companies participated in the state’s board-approved tax credit program and are collectively projected to create 8,549 new jobs, make $2.4 billion in new capital investments, pay $539 million in new state tax revenue, and provide $6.2 billion in new state wages over the next 20 years.
“Utah’s economic growth trajectory is set for continued prosperity as we surpass records and set new benchmarks,” said Ryan Starks, executive director of the Utah Governor’s Office of Economic Opportunity. “I commend our team for their ongoing efforts in driving investments through the EDTIF and REDTIF tax incentive programs, which are strengthening diverse industries.”
Created by the Legislature in 2005, the EDTIF program is for companies offering high-wage jobs, offering salaries at least 110% of the average county wage and 100% of the average rural county wage. By design, the program has a multiplier effect, creating additional jobs supporting corporate expansion across Utah’s diverse economy.
In FY 2024, the tax incentive program remained strong. Utah maintained its status as one of the best locations for businesses looking to expand. Trends for the year included projects that chose locations away from the Wasatch Front and into rural Utah. Incentivized new projects in rural Utah are projected to provide similar, if not more pay, than projects in more urban areas of Utah.
The REDTIF tax credit program is a rural modification of the EDTIF program that allows projects located in rural areas to pay at least 100% of the county average wage to qualify for more significant incentives. With this tool, the state has seen unprecedented economic opportunities flow to its more rural communities. Nine of the 20 approved projects occurred in rural counties, including more than 1,200 high-paid jobs and more than $700 million in capital investment.
The tax credit is available to Utah companies expanding and other businesses relocating or establishing additional operations in Utah and is reviewed by the Economic Opportunity board. Utah-based companies have most often used the tax credit. Since its inception, about two-thirds of the program’s tax credits have gone to Utah-based companies to help them expand and create more jobs for Utahns.
“The great state of Utah continues to attract and retain companies that bring a diverse collection of high-paying jobs that will positively impact our economy,” said Carine Clark, Economic Opportunity office board chair. “This is the direct result of our combined efforts to improve Utah’s strategic economic plans.”
Learn more about the state’s post-performance EDTIF/REDTIF program here.
