63M-1-2405 - Qualifications for tax credit -- Procedure. - Utah Statutes

63M-1-2405. Qualifications for tax credit -- Procedure.
(1) The office shall certify a business entity's or local government entity's eligibility for atax credit as provided in this section.
(2) A business entity or local government entity seeking to receive a tax credit shallprovide the office with:
(a) an application for a tax credit certificate;
(b) (i) for a business entity, documentation of the new state revenues from the businessentity's new commercial project that were paid during the preceding calendar year; or
(ii) for a local government entity, documentation of the new state revenues from the newcommercial project within the local government entity that were paid during the precedingcalendar year;
(c) if a local government entity seeks to assign the tax credit to a communitydevelopment and renewal agency in accordance with Section 63M-1-2404, a statement providingthe name and taxpayer identification number of the community development and renewal agencyto which the local government entity seeks to assign the tax credit;
(d) (i) with respect to a business entity, a document that expressly directs and authorizesthe State Tax Commission to disclose the business entity's returns and other information thatwould otherwise be subject to confidentiality under Section 59-1-403 or Section 6103, InternalRevenue Code, to the office;
(ii) with respect to a local government entity that seeks to claim the tax credit:
(A) a document that expressly directs and authorizes the State Tax Commission todisclose the local government entity's returns and other information that would otherwise besubject to confidentiality under Section 59-1-403 or Section 6103, Internal Revenue Code, to theoffice; and
(B) if the new state revenues collected as a result of a new commercial project areattributable in whole or in part to a new or expanded industrial, manufacturing, distribution, orbusiness service within a new commercial project within the local government, a documentsigned by an authorized representative of the new or expanded industrial, manufacturing,distribution, or business service that:
(I) expressly directs and authorizes the State Tax Commission to disclose the returns ofthat new or expanded industrial, manufacturing, distribution, or business service and otherinformation that would otherwise be subject to confidentiality under Section 59-1-403 or Section6103, Internal Revenue Code, to the office; and
(II) lists the taxpayer identification number of that new or expanded industrial,manufacturing, distribution, or business service; or
(iii) with respect to a local government entity that seeks to assign the tax credit to acommunity development and renewal agency:
(A) a document signed by the members of the governing body of the communitydevelopment and renewal agency that expressly directs and authorizes the State Tax Commissionto disclose the returns of the community development and renewal agency and other informationthat would otherwise be subject to confidentiality under Section 59-1-403 or Section 6103,Internal Revenue Code, to the office; and
(B) if the new state revenues collected as a result of a new commercial project areattributable in whole or in part to a new or expanded industrial, manufacturing, distribution, orbusiness service within a new commercial project within the community development and

renewal agency, a document signed by an authorized representative of the new or expandedindustrial, manufacturing, distribution, or business service that:
(I) expressly directs and authorizes the State Tax Commission to disclose the returns ofthat new or expanded industrial, manufacturing, distribution, or business service and otherinformation that would otherwise be subject to confidentiality under Section 59-1-403 or Section6103, Internal Revenue Code, to the office; and
(II) lists the taxpayer identification number of that new or expanded industrial,manufacturing, distribution, or business service; and
(e) for a business entity only, documentation that the business entity has satisfied theperformance benchmarks outlined in the agreement described in Subsection 63M-1-2404(3)(a),including:
(i) significant capital investment;
(ii) the creation of high paying jobs;
(iii) significant purchases from Utah vendors and providers; or
(iv) any combination of Subsections (2)(e)(i), (ii), and (iii).
(3) (a) The office shall submit the documents described in Subsection (2)(d) to the StateTax Commission.
(b) Upon receipt of a document described in Subsection (2)(d), the State TaxCommission shall provide the office with the returns and other information requested by theoffice that the State Tax Commission is directed or authorized to provide to the office inaccordance with Subsection (2)(d).
(4) If, after review of the returns and other information provided by the State TaxCommission, the office determines that the returns and other information are inadequate toprovide a reasonable justification for authorizing a tax credit, the office shall either:
(a) deny the tax credit; or
(b) inform the business entity or local government entity that the returns or otherinformation were inadequate and ask the business entity or local government entity to submitnew documentation.
(5) If after review of the returns and other information provided by the State TaxCommission, the office determines that the returns and other information provided by thebusiness entity or local government entity provide reasonable justification for authorizing a taxcredit, the office shall, based upon the returns and other information:
(a) determine the amount of the tax credit to be granted to the business entity, localgovernment entity, or if the local government entity assigns the tax credit in accordance withSection 63M-1-2404, to the community development and renewal agency to which the localgovernment entity assigns the tax credit;
(b) issue a tax credit certificate to the business entity, local government entity, or if thelocal government entity assigns the tax credit in accordance with Section 63M-1-2404, to thecommunity development and renewal agency to which the local government entity assigns thetax credit; and
(c) provide a duplicate copy of the tax credit certificate to the State Tax Commission.
(6) A business entity, local government entity, or community development and renewalagency may not claim a tax credit unless the business entity, local government entity, orcommunity development and renewal agency has a tax credit certificate issued by the office.
(7) (a) A business entity, local government entity, or community development and

renewal agency may claim a tax credit in the amount listed on the tax credit certificate on its taxreturn.
(b) A business entity, local government entity, or community development and renewalagency that claims a tax credit under this section shall retain the tax credit certificate inaccordance with Section 59-7-614.2 or 59-10-1107.

Amended by Chapter 104, 2010 General Session
Amended by Chapter 164, 2010 General Session
Amended by Chapter 164, 2010 General Session, (Coordination Clause)