Targeted Business Income Tax Credit (code 40)

UC §63N-2-305

A refundable credit is available to businesses providing a community investment project that includes one or more of the following criteria in addition to the normal operations of the business:

  • Substantial new employment;
  • New capital development; or
  • A combination of substantial new employment and new capital development.

For more information, see Utah Code Sections 63N-2-302 and 63N-2-304.

A business applicant claiming this credit must file an application with the local zone administrator by June 1 of the tax year.

The business applicant must:

  1. Be located in an enterprise zone and a county with a population of less than 25,000, and an unemployment rate at least one percentage point higher than the state average for six months or more of each calendar year;
  2. Have a facility located in the enterprise zone and in which at least 51% of the employees reside;
  3. Provide a community investment project within the enterprise zone, and a portion of the community investment project during each taxable year for which the credit is claimed; and
  4. Not be engaged in construction, retail trade or public utility activities.

Note: You cannot claim this refundable credit in a year you have claimed or carried forward the non-refundable Enterprise Zone Tax Credit or the non-refundable Recycling Market Development Zones Tax Credit.

When claiming the credit, complete form TC-40TB, Targeted Business Tax Credit, certified by the Governor’s Office of Economic Development. Do not submit this with your return. Keep it with your tax records.

Enter the credit on Utah TC-40A, Part 5, using code 40.

For more information, contact:

Governor’s Office of Economic Development
60 E South Temple, 3rd Floor
PO Box 146950
Salt Lake City, UT 84114-6950
(801) 538-8804