59-10-1107 - Refundable economic development tax credit.
59-10-1107. Refundable economic development tax credit.
(1) As used in this section:
(a) "Business entity" means a claimant, estate, or trust that meets the definition of"business entity" as defined in Section 63M-1-2403 or 63M-1-2803.
(b) "Office" means the Governor's Office of Economic Development.
(2) Subject to the other provisions of this section, a business entity may claim arefundable tax credit for economic development.
(3) The tax credit under this section is the amount listed as the tax credit amount on thetax credit certificate that the office issues to the business entity for the taxable year.
(4) (a) In accordance with any rules prescribed by the commission under Subsection(4)(b), the commission shall make a refund to a business entity that claims a tax credit under thissection if the amount of the tax credit exceeds the business entity's tax liability for a taxable year.
(b) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, thecommission may make rules providing procedures for making a refund to a business entity asrequired by Subsection (4)(a).
(5) (a) On or before October 1, 2013, and every five years after October 1, 2013, the UtahTax Review Commission shall study the tax credit allowed by this section and makerecommendations to the Revenue and Taxation Interim Committee and the Workforce Servicesand Community and Economic Development Interim Committee concerning whether the taxcredit should be continued, modified, or repealed.
(b) For purposes of the study required by this Subsection (5), the office shall provide thefollowing information to the Utah Tax Review Commission:
(i) the amount of tax credit the office grants to each taxpayer for each calendar year;
(ii) the criteria the office uses in granting a tax credit;
(iii) the new state revenues generated by each taxpayer for each calendar year;
(iv) the information contained in the office's latest report to the Legislature under Section63M-1-2406 or 63M-1-2806; and
(v) any other information that the Utah Tax Review Commission requests.
(c) The Utah Tax Review Commission shall ensure that its recommendations underSubsection (5)(a) include an evaluation of:
(i) the cost of the tax credit to the state;
(ii) the purpose and effectiveness of the tax credit; and
(iii) the extent to which the state benefits from the tax credit.
Amended by Chapter 164, 2010 General Session