Targeted Business (code 40)

A refundable credit is available to businesses providing a community investment project as defined in Utah Codes §63M-1-501, §63M-1-502 and §63M-1-503. 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, in which at least 51% of the employees reside in an enterprise zone county;
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.

Complete information on this credit is located in Utah Codes §63M-1-501, §63M-1-502 and §63M-1-503.

If an individual claims this credit, the individual may not claim a nonrefundable enterprise zone or nonrefundable recycling market development zone tax credit.

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

For more information, contact:

Governor's Office of Economic Development
324 South State Street, Suite 500
Salt Lake City, UT 84111
(801) 538-8775
goed.utah.gov/incentives/enterprise_zones