Tax and Incentives
Northern Utah offers a competitive tax environment supported by targeted state and local incentives designed to encourage investment, job creation, and workforce development. Together, these programs help businesses grow, reduce operating costs, and partner with local communities to support long-term economic success.
Tax Key Statistics
4.55%
Corp Tax Rate
4.5%
Individual Income Tax Rate
7.42%
Combined State and Average Local Sales Tax Rate
$2,492
Combined State and Local Individual Property Tax Average
Tax Incentives
Economic Development Tax Increment Financing, State program (EDTIF)
The Utah Governor’s Office of Economic Opportunity’s Tax Increment Financing (EDTIF) program helps foster and develop key industry sectors in the state, provide additional employment opportunities, and improve the state’s economy. Incentives are offered as tax credit rebates or grants. They’re disbursed after the company meets contractual performance benchmarks such as job creation, new capital expenditure, and payment of state taxes. The tax credit is a post-performance, refundable tax credit rebate for up to 30% of new state revenues (sales, corporate, and withholding taxes paid to the state) over the life of the project (up to 20 years, but typically 5-10 years). For more information visit: State of Utah site or email business@utah.gov
Corporate Partnerships & The Custom Fit Program
How do Utah businesses and educational institutions work together to create a talent ready workforce? One crucial way is through the Custom Fit program, a training resource for local businesses. Custom Fit has delivered tailored training solutions to businesses for over forty years to support workforce development and enhance Utah’s economic vitality. Custom Fit offers customized training to meet the specific needs of businesses. Whether technical training, safety certifications, computer skills, leadership development, service improvements, or any other skill, a Custom Fit office will collaborate with your company to create a personalized training plan.
Administered through a dynamic partnership between the Utah System of Higher Education, the state of Utah, and local businesses, Custom Fit is supported by annual appropriations from the Utah Legislature.
For more information visit Utah Colleges of Applied Technology site
Local Incentives (Tax Increment Financing)
Cities and counties may award incentives to companies locating in Economic Development Community Reinvestment Areas (CRA) or Redevelopment Areas (RDA). Incentive dollars are generated through the creation of a net-new property tax increment that a development will generate. For example, when a company constructs a new building, its property tax increment is the result of the assessed value of the building multiplied by the property tax rate. Incentives are awarded as a percentage of the tax increment created by the development.
Incentive value will vary widely based on the parameters of a given project area (CRA/RDA). On average in Utah, the percent rebate ranges from 50-75% and the term of the project area is 10-20 years.
Authorizing agencies vary widely by community. Under the CRA statute, every taxing entity has the ability to opt-in or out of a given project. Most communities will have taxing entities representing the City, County, School District, Fire & Safety and various Special Assessment Districts (library, water, etc.). They can all be considered “authorizing agencies.”
Most taxing entities meet monthly to review TIF requests. It is generally recommended to socialize a project with each taxing entity at least 2-3 months prior to requesting a rebate. Each community and taxing entity may have unique requirements for what they will, and will not, incent. “Incentive statutes” by taxing entity vary and need to be handled in a “one-by-one” fashion.
Funding available to a given project is based on the amount of investment in real and personal property, net-new property tax increment created (the local millage rate on average in Utah is between 1.25-1.5%) and the percent rebate granted by the individual taxing entities.
The local economic developer in the community under consideration will be your liaison in navigating the TIF process. They will work with you to create a project prospectus, area budgets and support you in the individual “asks” to local taxing entities.
West Weber Utah Inland Port Project Area
The West Weber Utah Inland Port Project Area is a proposed industrial development on the eastern shores of the Great Salt Lake near the area known as Little Mountain. The project area totals 9,000 acres and is located entirely within the boundaries of Weber County. This Project Area enjoys a very strategic location with access to: Interstate 15, Interstate 84, US Highway 89, Union Pacific rail, and a nearby regional airport. This is also a future site for a connection with the West Davis Corridor. Given the proximity to the Great Salt Lake and the presence of wetlands, a wetlands strategy has been established to ensure their protection.
Visit West Weber’s UIPA website for more information.
