Paige Smith | Published May 13, 2025 6 Min
Doing business in Utah? The Beehive State offers a range of helpful business tax incentive programs and credits that you should be aware of. Browse the list below to learn more!
Business tax credits and incentives in Utah
Hiring and expansion tax credits
Economic Development Tax Increment Financing Tax Credit
The Economic Development Tax Increment Financing (EDTIF) program is designed for companies seeking to expand within urban counties in Utah. The post-performance tax credit is equal to up to 30% of the new state revenues a company generates from a business expansion project over a five to 10-year period.
Only companies in the following five targeted industries are eligible to apply:
- Advanced manufacturing
- Aerospace and defense
- Financial services
- Life sciences and healthcare
- Software and information technology
Other qualification requirements center around location, job creation, and wages. Companies must be located in Salt Lake, Davis, Utah, Washington, or Weber counties, create a certain number of full-time jobs during their expansion project, and ensure their wages are at least 110% of their county’s average wages.
Learn more about the credit here.
Related: Check out these tips for hiring employees efficiently and legally in Utah.
Rural Economic Development Tax Increment Financing Tax Credit
The Rural Economic Development Tax Increment Financing (REDTIF) Tax Credit is an addition to the EDTIF program. Instead of catering to companies in urban counties, the REDTIF program supports companies expanding in rural counties within Utah, including Box Elder, Cache, Iron, Summit, and Tooele counties.
Businesses that qualify can receive a post-performance tax credit equal to 30-50% of the state revenues generated from their expansion project.
Unlike the EDTIF, businesses don’t have to belong to one of the state’s targeted industries to qualify for the REDTIF. They just need to meet the minimum job creation threshold and pay at least 100% of the county’s average wages.
See more program details here.
Pro tip: Double-check your state’s latest minimum wage requirements before hiring.
Rural Employment Development Incentive
Utah’s Rural Employment Development Incentive (REDI) program supports businesses that create new, high-paying jobs in rural areas of the state. Those include cities and towns with a population of 10,000 or less in Weber, Davis, Utah, and Washington counties.
To qualify for the incentive, businesses must create new positions that meet the below requirements:
- Located in a rural area
- Full-time (at least 30 hours per week)
- Pay at least 100% of the county’s average annual wage, not including healthcare and other benefits
- Retained for at least 12 consecutive months
Based on the county where the employee lives, businesses can receive a grant of between $4,000 and $6,000 per employee, totaling up to $250,000 in incentives per year. Get additional details on the REDI program here.
Investment tax credits
Technology and Life Science Tax Credit
The Technology and Life Science Tax Credit is available to investors in Utah who invest in qualifying technology and life science companies. That includes—but is not limited to—companies in fields such as health tech, digital health, biotechnology, and medical imaging.
The tax credit is a post-performance credit, equal to up to 35% of the investment over a three-year period. Eligible investors can get a credit for up to 10% of the purchase price of the qualifying ownership interest in the year they purchase it, up to 10% in the second year, and up to 15% in the third year. The maximum credit an investor can get per year is $350,000.
To qualify, investors need to invest at least $25,000 in a qualified company and not have more than a 30% ownership interest at the time of their investment. Find out how to apply for the credit here.
General business tax credits
Credit for Increasing Research Activities in Utah
Utah companies that invest in qualified research and development (R&D) activities might qualify for the state’s research tax credit. Eligible companies can get a credit for one or more of the following:
- 5% of qualified expenses for increasing research activities in Utah above a base amount
- 5% of certain payments made to a qualified organization increasing basic research in Utah above a base amount
- 7.5% of qualified research expenses in Utah for the current tax year
Learn more about the federal R&D tax credit and what it takes to qualify.
Renewable Energy Systems Tax Credit
The Renewable Energy Systems Tax Credit—administered by the Utah Office of Energy Development—is available to companies using alternative energy for their commercial building installation projects.
Commercial installation projects using solar, wind, geothermal, hydro, biomass, or certain renewable thermal technologies can qualify for a tax credit equal to 10% of the cost of the energy, up to $50,000. Learn more about the credit here.
Using alternative energy is just one way to practice environmental sustainability in your business. Here are five other practical strategies.
Utah film tax credits
Motion Picture Incentive Program
Production companies working in Utah can qualify for the Utah Film Commission’s Motion Picture Incentive Program (MPIP), which offers eligible companies a tax credit or cash rebate on in-state spending.
Eligible projects can get a credit or rebate equal to 20-25% of their qualified expenditures. To qualify for the incentive program, production companies must spend at least $500,000 in Utah and ensure that at least 75% of the project’s cast and crew are Utah residents. Eligible projects include:
- Feature films and documentaries made for commercial platforms
- Episodic pilots, series, or episodes
- Short films and music videos
- Reality television
Get more details on the program here.
Community Film Incentive Program
The Community Film Incentive Program (CFIP) is a post-performance cash rebate designed to support newer filmmakers in Utah. The program is geared toward production projects in Utah with smaller budgets, between $100,000 and $500,000.
Eligible projects—which include feature films, documentaries, short films, and TV—can get a cash rebate equal to 20% of their eligible in-state expenditures.
To qualify, projects need to meet the following criteria:
- The director, writer, or producer must be a Utah resident
- At least 85% of the cast and crew must be Utah residents, earning at least $100 a day
Learn more about the incentive and how to apply here.
Business tax exemptions
Manufacturing Sales and Use Tax Exemption
Eligible manufacturing businesses in Utah don’t have to pay sales and use tax on purchases of machinery, equipment, and repair or replacement parts. See details here.
Local business tax credits in Utah
Some cities and counties in Utah have their own business tax incentives and tax credits. Search the economic development section of your city’s website to discover what your options are.
Business financing in Utah
If you need capital or flexible credit to invest in your business’s growth, state resources might help. Utah has a variety of business loans and grants designed for small and large operations alike. For a complete list, look no further than Gusto’s guide to grants and loans in the Beehive State.
