Development director details local business tax credits, incentives
During a recent interview with Delynn Fielding, the county's economic development director detailed the tax incentives available to people doing business in Carbon.
Specific incentives from Carbon County and local cities are available based on project size, new jobs brought into the area and specific needs.
Examples include land costs impact and connection fees, utilities and development costs.
"Not knowing the tax breaks that are available can be very costly for any business," said Fielding. "A local business will receive $27,000 in tax refund for a facility expansion after receiving this information."
Businesses eligible for tax credits exclude construction jobs, retail outlets and public utilities.
A document provided by Fielding detailed the specific tax credits. The benefits include:
The historically underutilized business zone empowerment contracting program stimulates economic development by providing federal contracting preferences to small companies located in Carbon County.
All of Carbon County is designated a Small Business Administration HUB zone.
The designation means that a bid preference of up to 10 percent will be given to small businesses that obtain HUB zone certification, partly by employing staff that live in Carbon County.
Targeted business tax credits.
A section of enterprise zone law allows paying a total of $100,000 paid to a company for new employees and new plant equipment.
The credit is applicable to new and expanding business in Carbon County. Funds will be distributed to the businesses with the highest economic impact to the community.
Up to $8,500 in federal tax credits are available to employers of qualifying employees.
There are several classes of qualifying employees. The tax credit is 35 percent of wages in the first year and 50 percent of wages in the second year.
Additionally employers may receive a credit of $750 for each full-time job created in the agricultural products industry through manufacturing or processing, with an extra $500 available for employers who pay 125 percent of the average county and industry wage.
For example, each lumber mill (an agricultural product) laborer earning $8.40 per hour could receive a $2,000 dollar tax credit if 50 percent of his health insurance was paid by the company the credit would increase to $2,200.
Tax credits are available for all investment in new plant and equipment at 10 percent for the first $250,000 and 5 percent of the next $1000,000.
For example, a $100.000 investment for new equipment in an existing business provides a $10,000 credit on Utah taxes. An expansion of $1,250,000 for a new building and equipment would provide a $75,000 state tax credit.
A tax credit of 25 percent of the first $200,000 spent on rehabilitating a building which has been vacant for at least two years and which is located in an enterprise zone is available.
The building rehabilitation tax credits can be forwarded up to three years.
A 5 percent state tax credit is available on machinery and equipment used on both ends of the recycling stream.
The credit includes the saving of materials to be recycled and/or the using of recycled materials in the production process.
Only 40 percent of tax liability can be offset per year.
Twenty percent of operating cost of the recycling process is available as a tax credit up to $2,000 dollars annually.
Operating costs include wages fuel, utilities, supplies, etc.
It is important to note, however that recycling credits and the enterprise zone credits cannot be used on the same equipment.
The Utah aerospace and aviation tax credit program was created to encourage the growth of the aerospace and aviation manufacturing industry.
Companies creating new aerospace and aviation manufacturing jobs may apply for a partial rebate of 30 percent for up to 20 years in state tax revenues.
The rebate will apply to new income generated in the state by the job growth or capital investment, including payroll tax of new employee.
Manufacturers are exempt from paying sales tax on the purchase of new equipment for plants.
The purchase of replacement manufacturing equipment is also exempt from sales tax.
Previously paid sales tax can possibly be refunded.
The exemption amounts to a 6 percent cost savings.
According to Fielding, even business accountants may not be aware of the incentives that are available to companies operating in the Carbon County area.
For elegibility criteria information, Carbon County businesses may contact Fielding at the Carbon County Community Development Complex, located at 120 East Main in Price.
Some of the business tax credits require a separate application for approval.