Economic Development Finance
Salt Lake City and the State of Utah offer numerous incentives to encourage investment and create an atmosphere for new job creation. The Salt Lake City Economic Development Manager will work with you to provide detailed information on incentive programs and facilitate the city development process. Below you will find economic incentives that are offered through Salt Lake City and State programs.
Salt Lake City Financing and Incentives
Economic Development Loan Fund
The Economic Development Loan Fund stimulates business development and expansion, encourages private investment, promotes economic development, and enhances neighborhood vitality in Salt Lake City by making low-interest loans available to businesses.
Salt Lake City Redevelopment Agency
The Salt Lake City Redevelopment Agency (RDA) was created for the purpose of improving the environment of the city and creating better urban living conditions by mitigating blight. The RDA has developed a variety of loan programs for building renovation, new construction, and tax increment financing to assist property owners within Redevelopment Project Areas.
Foreign Trade Zone (FTZ) #30
Salt Lake City is the only city in the state with a Foreign Trade Zone. Strategically situated near the Salt Lake City Airport, the zone offers companies the ability to defer, reduce or eliminate customs duties on product stored within the General Purpose Zone of FTZ #30. The FTZ also offers logistic and administrative benefits through procedures such as weekly Customs entry summaries and associated reduced transaction costs.
Industrial Revenue Bond Program
Industrial revenue bonds are a special tax-exempt form of financing made available by the State of Utah and issued through Salt Lake City Corporation to finance qualified projects at interest rates substantially below comparable commercial rates.
This program is an incentive that businesses with a direct tie to recycling are aware of and consider when choosing a location. Momentum Recycling, Metech Recycling and SpringBack Utah have all used the incentive to begin operation in SLC, within our zone designation.
Economic Development Area (EDA)/Urban Renewal Area (URA)
All public entities that are entitled to property tax (school districts, counties, cities, libraries, etc.) can agree to rebate their increment back to the new development for a specified period of time as a way to promote development. In a Community Development Area (CDA), public entities can choose to opt-in on a property tax rebate if they see fit.
The Industrial Assistance Fund was created in 1991 to encourage the creation of good jobs in the State of Utah. The incentive is based on job creation for jobs paying higher than county median wages and is a post performance award.
Aerospace Aviation Tax Increment Financing (AATIF)
The Aerospace Aviation Tax Increment Funding was created by the State of Utah Legislature in 2003 to encourage the development of the Aerospace Ecosystem.
Economic Development Zone Tax Increment Finance
(EDTIF) The incentive is used for projects in specific targeted industries (list of industries) in urban areas and projects. Only 30% may be rebated to the company over the life of the project and a company cannot receive a rebate of more than 50% of the total state revenue generated in any one year. The incentive typically lasts 5 years and cannot last more than 10 years. The incentive may not be used for retail distribution projects.
Custom Fit Training
Custom Fit training money is used to help companies train their employees and is administered generally through state colleges and state applied technology centers.
Private Activity Bond (PAB)
The Private Activity Bond is Utah's tax-exempt bonding authority creating a lower cost, long-term source of capital under the Federal Tax Act of 1986.
The Motion Picture Incentive Fund's purpose is to attract film production with a post-performance rebate plan.
Research Tax Credits
Companies doing qualified research in Utah are eligible for incomes tax credits of up to 6% of qualified research expenses. Qualified research expenses include wages, machinery, software, and equipment.
Sales Tax Exemption for Manufacturing Equipment
Manufacturers (SIC 2000-3999) are exempt from sales tax on the purchase of new equipment for Utah Plant start-up. Replacement manufacturing equipment purchases are also exempt from sales tax.