Targeted Business (code 40)

A refundable credit is available to businesses providing a community investment project as defined in Utah Codes §63-38f-501, §63-38f-502 and §63-38f-503. A business applicant seeking to claim this credit must file an application with the local zone administrator by June 1 of the tax year.

The business applicant must meet the following criteria:

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

Complete information on this credit is located in Utah Codes §63-38f-501, §63-38f-502 and §63-38f-503.

If an individual claims this credit, the individual may not claim an enterprise zone tax credit or 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:

To obtain form TC-40TB, certification or for additional 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