Utah Governor’s Office of Economic Development

Policy

• Post-performance refundable tax credit of up to the amount of the new state revenue generated for the project for three consecutive years as long as new state revenues are generated in those years, less considerations based on economic modeling, including costs and benefits to state and local governments
• Three general factors in calculation of new state revenue: corporate or partnership income tax (State of Utah is approximately 5%); wage withholding tax (State of Utah is approximately 5%) less 25%; state portion of sales tax (both direct and indirect, the State of Utah portion is approximately 4.7% of the total sales tax percentage charged by a local municipality)
• All eligible business entities may apply (persons will be bound by the same requirements as business entities), no restrictions on history or profitability
• Eligible life sciences establishments, defined by the following NAICS codes: 33911 (Medical Equipment and Supplies Manufacturing), 334510 (Electromedical and Electrotherapeutic Apparatus Manufacturing), 334517 (Irradiation Apparatus Manufacturing) and 334413 (Semiconductor)
• Requires new products or projects which begin in Utah after August 1, 2011
• Business must employ at least 50% of its employees in the State of Utah each day of the taxable year for each taxable year that a tax credit is authorized
• Not permitted to carry forward or carry back
• Provide letter of support for project from local municipality if the investment involves physical expansion of the business.  To find contact information for your local economic development professional please visit the following website: http://www.edcutah.org/documents/EDDirectory_010411.pdf or call Sherri Martell at (801) 328-8839 or email at smartell@edcutah.org
• If available, please include financial statements, profits & loss statements, and current balance sheet or tax return information
• If available, please include trade/credit references
• Eligible applicants are not permitted to utilize more than one incentive per new product or project
• Applications will be prioritized and awarded based on recommendations by an independent review committee and approval by the GOED Board

2007 NAICS Code 33911 Medical Equipment and Supplies Manufacturing

• Establishments primarily engaged in manufacturing medical equipment and supplies.
• Examples of products made by these establishments are laboratory apparatus and furniture, surgical and medical instruments, surgical appliances and supplies, dental equipment and supplies, orthodontic goods, dentures, and orthodontic appliances.

2007 NAICS Code 334510 Electromedical and Electrotherapeutic Apparatus Manufacturing

• Establishments primarily engaged in manufacturing electromedical and electrotherapeutic apparatus, such as magnetic resonance imaging equipment, medical ultrasound equipment, pacemakers, hearing aids, electrocardiographs, and electromedical endoscopic equipment.

2007 NAICS Code 334517 Irradiation Apparatus Manufacturing

• Establishments primarily engaged in manufacturing irradiation apparatus and tubes for applications, such as medical diagnostic, medical therapeutic, industrial, research and scientific evaluation. Irradiation can take the form of beta-rays, gamma-rays, X-rays, or other ionizing radiation.

2007 NAICS Code 334413 Semiconductor

• Establishments primarily engaged in manufacturing semiconductors and related solid state devices.
• Examples of products made by these establishments are integrated circuits, memory chips, microprocessors, diodes, transistors, solar cells and other optoelectronic devices.

Taxable Year UCA 59-7-101(26)(a)

• The calendar year or the fiscal year ending during such calendar year upon the basis of which the adjusted income is computed
•  In the case of a return made for a fractional part of a year under this chapter or under rules prescribed by the commission, "taxable year" includes the period for which such return is made