File No. 34929
This rule was published in the July 1, 2011, issue (Vol. 2011, No. 13) of the Utah State Bulletin.
Governor, Economic Development
Technology and Life Science Economic Development and Related Tax Credits
Notice of 120-Day (Emergency) Rule
DAR File No.: 34929
Filed: 06/15/2011 04:21:30 PM
Purpose of the rule or reason for the change:
Section 63M-1-2907 requires a rule establishing the criteria to prioritize the issuance of tax credits and the procedures for documenting the Governor's Office of Economic Development's application of the criteria. This rule is being filed to address H.B. 496 from the 2011 General Session of the Utah State Legislature which funded tax credits for technology and life sciences companies. (DAR NOTE: H.B. 496 (2011) was effective 05/10/2011.)
Summary of the rule or change:
This rule establishes the criteria for an entity to qualify for the technology and life sciences tax credit. (DAR NOTE: A corresponding proposed new Rule R357-6 is under DAR No. 34930 in this issue, July 1, 2011, of the Bulletin.)
Emergency rule reason and justification:
Regular rulemaking procedures would place the agency in violation of federal or state law.
Justification: While this tax credit became official on 05/10/2011, submissions for entities wishing to apply to receive it are due on 07/01/2011. Therefore this emergency rule is submitted in order to have it in place immediately so those wishing to apply can do so.
State statutory or constitutional authorization for this rule:
- Section 63M-1-2907
Anticipated cost or savings to:
the state budget:
There are no immediate anticipated costs or savings to the state budget due to this rule. However, should companies receive a tax credit, it will be paid out based on the criteria outlined in the rule which can result in costs to the state. It is worth noting that this incentive is post-performance and the percentage paid out is less than a company actually pays in to the economy.
There are no immediate anticipated costs or savings to local government. However, should these companies receive an incentive and do a project in Utah, the local government(s) where they decide to do their projects should greatly benefit economically.
The rule anticipates issuing tax credit certificates up to $1,300,000 to small businesses and investors in small businesses.
persons other than small businesses, businesses, or local governmental entities:
There are no direct anticipated costs or savings to persons other than small businesses. However, once projects are approved they could result in positive economic benefits for all persons in the state of Utah.
Compliance costs for affected persons:
There are no anticipated compliance costs for affected persons because the rule outlines an internal review procedure.
Comments by the department head on the fiscal impact the rule may have on businesses:
The rule implements a statutory mandate to issue tax credits to qualifying technology and life sciences applicants. By design, the rule seeks to attract capital and investment into Utah's growing technology and life sciences industries. This rule will grow, expand, and capitalize Utah technology and life sciences companies.
Spencer Eccles, Executive Director, Governor�s Off
The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:Governor
324 S State
SALT LAKE CITY, UT 84111
Direct questions regarding this rule to:
- Greg Hartley at the above address, by phone at 801-538-8743, by FAX at 801-538-8888, or by Internet E-mail at email@example.com
This rule is effective on:
Spencer Eccles, Executive Director
R357. Governor, Economic Development.
The Portable Document Format (PDF) version of the Bulletin is the official version. The PDF version of this issue is available at https://rules.utah.gov/publicat/bull-pdf/2011/b20110701.pdf. The HTML edition of the Bulletin is a convenience copy. Any discrepancy between the PDF version and HTML version is resolved in favor of the PDF version.
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For questions regarding the content or application of this rule, please contact Greg Hartley at the above address, by phone at 801-538-8743, by FAX at 801-538-8888, or by Internet E-mail at firstname.lastname@example.org.