Tuesday, February 11, 2014

Hello Wayne County Businesses,

Please read this announcement and see if you are the owner of a business that can take advantage of this Targeted Business Tax Credit Incentive!

Wayne County has received Enterprise Zone designation from the Utah Department of Community & Economic Development, in time for eligible businesses to claim the credits on their 2013 tax returns.

The specific areas included in the designation are: private, non-residential land in all unincorporated Wayne County and the towns of: Bicknell, Hanksville, Loa and Torrey. I am working on Lyman becoming an Enterprise Zone.

The Enterprise Zone program provides tax credits primarily for job creation and new investment in plant and equipment for eligible companies located within the designation.

Utah has an incentive called the Targeted Business Tax Credit. Qualifying counties must have unemployment 1% or greater than the state average for at least 6 of the last 12 months AND have a population of UNDER 25,000. The participating companies must be in an enterprise zone and the companies cannot be in construction or retail industries.

There are seven counties that qualify this year; Carbon, Emery, Garfield, Grand, Kane, San Juan, and Wayne. The attached application is simple; the company information and the company’s projections for additional full time equivalent jobs, the amount they are going to pay the additional employees, and the amount the company will invest in equipment and building. Each of these three factors are detailed for years 2014, 2015, and 2016. The projections are cumulative. If they project 5 new employees each year the number of FTE must go up 5 each year reflecting the permanent long term growth.

The applications are entered into a matrix that ranks the economic impact of each proposal in comparison to the other applications. The company with the highest impact is awarded funding along with the next and down the list until we run out of money. There is $300,000 allocated each year in the legislation.

Obviously the more employees, the higher their wages, the more building and equipment the company projects to buy, the more likely they will be allocated the grant. HOWEVER, each year the results must be documented and verified. If the company is short from their projections 1 employee, or $1 of salary or equipment/building they receive nothing for that year.

Remember, as each year progresses the company knows where they are in each category and can adjust accordingly to receive the incentive. The purpose is to incent local real and permanent growth in winning companies.

The maximum award per company over the three years is $100,000. The funds are allocated each year depending on their projections. You and the winning companies are notified of the details.

The applications are due in this office February 28th. Awards will be made the next week.

If you are interested in an application, please contact me at
Phone: 435-836-1315
michellewco@gmail.com

Friday, June 21, 2013