All Roll Calls
Yes: 192 • No: 7
UtahH.B. 5072026 General SessionHouseWALLET
State Coordination of Regional and Local Economic Development Projects Amendments
Sponsored By: Calvin Roberts (Republican)
Signed by Governor
Economic DevelopmentCommunity Reinvestment AgenciesElectricityNatural GasPublic UtilitiesPublic Utilities and TechnologyWorkforce ServicesLimited Purpose Local Government EntitiesPolitical Subdivisions (Local Issues)State Tax CommissionRevenue and TaxationUtah Inland Port AuthorityCounty and Municipal FinanceLocal Taxation and FeesTax Increment FinancingPublic Infrastructure DistrictAffordable Housing
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Bill Overview
Analyzed Economic Effects
30 provisions identified: 12 benefits, 4 costs, 14 mixed.
State legal claim limits update biennially
Every even‑numbered year, the state recalculates judgment limits using a weighted inflation formula for consumer prices and medical costs. The new limits are rounded up to the next $100 and cannot be lower than the prior limits. The fiscal analyst sends the amounts by May 1, and rules take effect by July 1; higher limits apply only to claims that happen after the rule date. This process began May 6, 2026.
First home villages: clear housing targets
First home villages must meet strict density, ownership, and affordability goals. At least 51% of developable land must average 30 homes per acre, and half of the homes in that high‑density area must be owner‑occupied. At least 25% of homes in the zone must stay owner‑occupied for 25 years. Inside the zone, at least 12% of owner‑occupied homes and 12% of non‑owner homes must be affordable; at least 20% of any counted extraterritorial homes must be affordable, and these homes can be no more than half of the units used in density calculations. The condo owner‑occupancy rule starts one year after a certificate of occupancy. Effective May 6, 2026.
More affordable, denser homes near transit
The law sets clear housing rules in transit-focused zones. At least 12% of homes must be affordable, with up to 9% for households at or below 80% of county median income and at least 3% for those at or below 60%. At least 51% of the developable land is for homes, averaging 50 units per acre (39 units per acre is allowed at certain transit hubs). At least 25% of units must have more than one bedroom. If the project is phased, each phase must meet the 12% affordable share and include a plan to keep units affordable for the full zone term. Effective May 6, 2026.
Project revenue helps affordable homeownership nearby
The Authority may use up to 10% of a project’s general differential revenue for affordable housing. It may fund a non‑profit to help low‑income people buy or keep homes within 15 miles of the project. The Authority may also share general differential funds with local taxing entities that levy property tax in the project area. Effective May 6, 2026.
Stronger owner consent for infrastructure districts
Creating a public infrastructure district now requires signatures from 100% of surface property owners. Annexation or withdrawal also needs a board resolution and 100% owner consent, with local government approval if outside the creating entity. Any increase to a district’s property tax levy limit needs consent from 100% of surface owners. The governing document must name initial board members; only resident board members may be paid. Residency rules can be waived if all owners consent, there are no residents, or no candidates file; non‑resident appointees must own land (or be an owner’s agent/officer) and be registered voters. Districts must pay their own costs and cannot use eminent domain. Effective May 6, 2026.
More projects qualify, including remote and nonprofits
Effective May 6, 2026, more locations and industries count as a new commercial project, including targeted industries and projects in smaller counties or small towns in second‑class counties. The law defines a remote work opportunity: no physical office is required, but employees must work from inside the state and keep state residency. Nonprofit groups count as business entities for a specific state tax credit and can sign agreements with the office to start qualifying new commercial projects.
How cities can spend zone money
Cities and transit counties must use housing and transit zone funds on listed needs. Money can pay for income‑targeted housing, structured parking, construction, land, and administration. Admin costs are capped at 2% of total funds plus gap‑analysis costs. Up to 1% can build or expand child care facilities. These rules apply beginning May 6, 2026.
How energy zones are approved and overseen
Counties, cities, or regional authorities can apply to create an electrical energy development zone. The council must decide within 60 days and approve if the land is suitable and the plan fits state energy policy with clear timelines and benefits. Agencies can form public‑private partnerships when they promote zone goals. Agencies must budget for the zone, follow audit rules, and give biennial reports starting in the zone’s second year. The creating entity must also report by August 1, and the executive director must send an annual summary and recommendations by October 1. Any financing district used for zone goals must follow the same budget, audit, and reporting rules. Effective May 6, 2026.
Infant at Work pilot ends
The Infant at Work pilot program ends June 30, 2026. After that date, the law that allowed the pilot and its benefits is no longer in effect.
Inland Port: share gains, keep funds local
From May 6, 2026, the Inland Port Authority generally cannot use tax differential from one project area to pay for another project area. For project areas adopted on or after September 30, 2026, the Authority must put 1% to 5% of tax differential revenue into a reinvestment account; older areas may contribute up to 5% if the county or city allows. When the Authority helps fund private development, staff can require developers to share revenue or profits; in remediation areas the board sets a yearly share up to 50% of annual revenues. The base taxable value for authority land uses 2018 (or 2017 for certain areas), and for land outside authority land it uses the last equalized roll before the plan year.
Limits on data center and energy incentives
Effective May 6, 2026, counties and cities cannot offer incentives to large-load data centers unless the site is inside a designated development zone, with exceptions for project areas or agreements made before May 6, 2027. Effective May 6, 2027, local governments cannot give tax increment or personal property tax–funded incentives to large-load data centers, except inside a regionally significant development zone or certain regional programs with caps; counties and cities may use up to 80% of their energy tax revenue as an incentive. Sales and use tax exemptions do not count as incentives. Local incentives for baseload energy projects are limited to designated electrical energy development zones, with exceptions for municipal projects that only serve the city, projects using only intermittent resources, projects that are not nuclear, and plans approved before July 1, 2026.
New rules for public infrastructure districts
When a public infrastructure district finishes required work and pays all debts, the board must dissolve it. Any leftover assets first go to real property owners tied to the district’s costs, then to the entity that will run the infrastructure. If bonds tied to a withdrawn area are still unpaid, those properties keep paying district taxes, fees, or assessments until the bonds are paid. A governing document may switch from appointed to elected board seats when milestones are reached, with elections at the next municipal general election. These rules take effect May 6, 2026.
New rules on records, confidentiality, and fees
Negotiations over business incentives can be kept private if releasing them would cause real economic harm or hurt the government’s competitive position. If you claim business confidentiality, you must do it in writing, explain why, and agree to defend and indemnify the government if access is denied. If a protected record is intentionally disclosed or about to be, the requester can sue to stop it and seek damages; the state sets a cap on such damages by rule starting July 1, 2026 and updating every even year. Courts may award attorney fees to requesters who substantially prevail when the other side acted in bad faith, or assess fees against bad‑faith requesters; fees are only eligible if you gave a written explanation and waited 20 days before incurring them. Effective May 6, 2026.
Deadlines and rules for reinvestment zones
The base year for housing and transit reinvestment zones is the approval year or up to five years earlier; for the capital‑city convention center zone, it is 2023. When a zone overlaps a community reinvestment area, housing and transit zones may capture the difference up to 80%, and convention center zones up to 100%; if the older plan ends first, the zone can capture its increments for the rest of the zone’s term. Cities and public transit counties cannot propose new housing and transit reinvestment zones after January 1, 2028. Cities can propose first home investment zones only through December 31, 2027. Cities may align a first home zone’s boundary with later county parcel boundary changes. Effective May 6, 2026, with proposal cutoffs on the 2027/2028 dates.
Limits and process for transit zones
The law sets size and revenue‑capture limits for housing and transit zones. Commuter rail zones may be no larger than a 1/3‑mile radius and 125 acres; light rail or bus rapid transit zones are limited to a 1/4‑mile radius and 100 acres. Zones may capture up to 80% of property tax increment for limited years, but if housing density is 39–49 units per acre the cap is 60%. A zone must be at least 10 acres. The law defines how sales and use tax increment is measured, requires notice by December 31 before collections start, and allows boundary adjustments only with county‑assessor consultation and within station radii, with any added acreage offset. A parcel’s trigger uses its legal boundary at the time of triggering. Effective May 6, 2026.
How zones raise and spend money
Beginning May 6, 2026, zone revenue can include property tax increment, personal property tax, and county energy excise tax money a county gives the agency. Agencies must spend zone revenue inside the zone or an impacted area if it directly benefits the zone, including for housing, structured parking, construction, public infrastructure, land, and bond payments. Agencies may issue bonds, create financing districts, and use zone funds to secure those bonds. A creating entity must name one agency to manage each approved zone, and the agency must study and recommend ways to raise more zone revenue. Agencies may use up to 3% of annual zone revenue for administration, and some revenue must be sent to the State Reinvestment Restricted Account as the law requires.
Inland Port funds and new environmental limits
The Utah Inland Port Authority can use property tax differential, state receipts, and other funds for operations, financing development, public infrastructure, affordable housing payments, bonds, land buffers, and to require cleaner, higher‑efficiency projects under its standards. The authority must set minimum mitigation and environmental standards. It may not use property tax differential to recruit a business whose new or expanded development will use more than 200,000 gallons of drinking water per day on an annual basis. The authority must consult the local city or county when setting the standards. Effective May 6, 2026.
Caps, timelines, payments for increment zones
When approved, a regionally significant development zone is created and the committee sets boundaries, the maximum years to collect (up to 25), and any revenue caps. Counties must forward the committee‑set share of property tax increment, but not more than 70% for transit‑oriented or first‑home villages, and not more than 60% for economic development zones. Agencies must send 5%–25% of prior‑year property‑tax revenue to the State Reinvestment Account by March 1, and total collection cannot exceed 25 years or extend beyond 40 years after the zone’s effective date. Counties face numeric caps on how many zones they may have. Notice deadlines apply (by October 1 before starting collection and 90 days before triggering a parcel), and agencies must have agreements before sharing zone revenue and must act as the revenue custodian. Effective May 6, 2026.
Money flows and incentives in energy zones
After a zone is designated, starting January 1, the county treasurer shifts set shares of personal property tax and tax increment to the zone agency and reinvestment account, on the same schedule as regular property tax payouts. A county or city can use zone revenue for incentives, infrastructure, and workforce training, and may share it by agreement. Beginning May 6, 2027, incentives to a large load data center are capped at up to 80% of diverted personal property tax revenue, or up to 80% of county or municipal energy tax revenue where those taxes exist. Each year, the property tax differential in an electrical energy development zone goes to the Electrical Energy Development Investment Fund, with splits set by agreement if areas overlap. Regionally significant development zones now count for property tax increment, and the law defines key terms for limits on tax‑increment incentives for large data centers. Agencies may also grant zone revenue to a person under a participation agreement. Effective May 6, 2026.
Special tax rules for data centers
Zones that include large data centers must divert all personal property tax revenue from within the zone. They may request up to 60% of the property tax increment, subject to approval. Proposals must map the zone, assess electrical infrastructure, and include a development plan with projected benefits. Zones may not overlap certain existing project areas. Effective May 6, 2026.
Small zones to boost home ownership
Cities and counties can create a “home ownership promotion zone” of 10 acres or less. The land must be rezoned to allow at least six homes per acre and have no active residential building permits on the day it is created. Zones must be inside the city or unincorporated county, follow planning commission recommendations, and meet notice rules. These zones must be created before January 1, 2028.
First home zone proposals: studies required
First home zone proposals must include goals, needed infrastructure, maps, zoning, a plan for barriers, pedestrian access, and child care. Cities must study parking and land‑use impacts and propose fixes. Within 14 days of receiving a proposal, the Governor’s Office notifies taxing entities and hires an independent gap and pro‑forma review paid by the city; the office may accept up to $20,000 to cover the analysis. After committee approval, the office consults the county assessor on parcel boundary adjustments. A state committee reviews proposals in public meetings. Effective May 6, 2026.
Study future caps on tax increment
A legislative working group must study tax‑increment financing and recommend caps by November 1, 2026. The group is formed by May 30, 2026 and includes local and state voices. The Governor’s Office and legislative staff support the work.
Public database and faster record sharing
Beginning May 6, 2026, the Governor’s Office of Economic Opportunity must run a public online database with yearly data for each agency’s active project areas; filings are due by June 30 each year. The office can hire contractors and charge fees under a posted schedule. Government entities may share protected economic development records with listed state and regional bodies without a nondisclosure agreement, and recipients must keep the records protected. Certain development authorities are treated as local government entities for state- or authority-owned land.
Enterprise Zones end after 2026
The Enterprise Zone Act and a related funding rule are repealed on December 31, 2026. After that date, businesses cannot use enterprise zone incentives.
Local approval and timing rule changes
A county rule that required certain findings for economic development projects is repealed on July 1, 2027. Section 63N-3-605 takes effect May 6, 2026, but applies back to May 4, 2022. A small code title section is also repealed. These changes adjust local approval steps and when a section applies.
All taxing bodies join housing zones
Starting May 6, 2026, when a city creates a home ownership promotion zone, all affected taxing entities must join at the same participation rate. The city may collect tax increment tied to the zone and use the money for allowed zone purposes.
Caps on overlapping tax increment capture
Starting May 6, 2026, a regionally significant development zone cannot trigger tax increment on a parcel already inside an active project area until that area’s collection period ends. These zones generally cannot overlap housing-and-transit or first-home zones unless they do not collect increment in the overlap or wait until the other zone’s collection ends. Overlap with certain regional authority project areas needs that authority’s consent and the combined capture may not exceed 60% in any year.
New guardrails on agency development funds
Starting May 6, 2026, agencies can use their funds for allowed purposes, including administration, project development, incentives in participation agreements, and public improvements with required consents. Sales and use tax money an agency gets under an interlocal agreement is not subject to the retail-facility incentive ban and can be used as the agreement allows. Agencies cannot use project or property tax revenue to build local government buildings without consent from the taxing entities. Before paying tax increment to a private participant, the agency must check for tax delinquencies or liens; if the agreement allows, the treasurer can redirect that money to pay what is owed. Agencies must reimburse a creating entity’s required pro forma analysis cost on request, and any transfers to offset a community’s homeless-mitigation contribution cannot exceed that community’s annual required contribution.
State approval for tax increment projects
A state Increment Authorization Committee now reviews projects that use tax‑increment financing. The Office’s executive director coordinates reviews, evaluates regional benefits, and may hire independent consultants with conflict‑of‑interest limits. The office can make rules to run the program. Cities and counties must consult school districts and taxing entities, hold a public meeting, and include a pro forma before submitting proposals. The committee evaluates proposals in public and can approve, modify, or deny them. Effective May 6, 2026.
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Sponsors & Cosponsors
Sponsor
Calvin Roberts
Republican • House
Cosponsors
Kirk A. Cullimore
Republican • Senate
Roll Call Votes
House vote • 3/6/2026
House Motion to Adopt Joint Conference Comm Rpt
Yes: 0 • No: 0
Senate vote • 3/6/2026
Senate/ refused to recede from Senate amendments
Yes: 0 • No: 0
House vote • 3/6/2026
House Conference Committee - Final Passage
Yes: 57 • No: 1
Senate vote • 3/6/2026
Senate Motion to Adopt Joint Conference Comm Rpt
Yes: 0 • No: 0
Senate vote • 3/6/2026
Senate Conference Committee - Final Passage
Yes: 27 • No: 1
Senate vote • 3/5/2026
Senate/ substituted
Yes: 0 • No: 0
Senate vote • 3/5/2026
Senate/ uncircled
Yes: 0 • No: 0
Senate vote • 3/5/2026
Senate/ passed 2nd & 3rd readings/ suspension
Yes: 22 • No: 2
House vote • 3/5/2026
House/ refuse to concur with Senate amendment
Yes: 0 • No: 0
Senate vote • 3/4/2026
Senate/ circled
Yes: 0 • No: 0
House vote • 3/2/2026
Senate Comm - Favorable Recommendation
Yes: 3 • No: 0
House vote • 2/25/2026
House/ uncircled
Yes: 0 • No: 0
House vote • 2/25/2026
House/ passed 3rd reading
Yes: 69 • No: 1
House vote • 2/25/2026
House/ substituted
Yes: 0 • No: 0
House vote • 2/24/2026
House/ circled
Yes: 0 • No: 0
House vote • 2/18/2026
House Comm - Favorable Recommendation
Yes: 7 • No: 1
House vote • 2/18/2026
House Comm - Substitute Recommendation
Yes: 7 • No: 1
Actions Timeline
Governor Signed
3/25/2026House/ to Governor
3/16/2026HouseHouse/ received enrolled bill from Printing
3/16/2026HouseHouse/ enrolled bill to Printing
3/12/2026HouseEnrolled Bill Returned to House or Senate
3/12/2026Draft of Enrolled Bill Prepared
3/10/2026Bill Received from House for Enrolling
3/10/2026House/ signed by Speaker/ sent for enrolling
3/7/2026HouseHouse/ received from Senate
3/7/2026HouseSenate/ to House
3/6/2026SenateSenate/ signed by President/ returned to House
3/6/2026SenateSenate/ received from House
3/6/2026SenateHouse/ to Senate
3/6/2026HouseHouse Conference Committee - Final Passage
3/6/2026House Motion to Adopt Joint Conference Comm Rpt
3/6/2026House/ received from Senate
3/6/2026HouseSenate/ to House
3/6/2026SenateSenate Conference Committee - Final Passage
3/6/2026Senate Motion to Adopt Joint Conference Comm Rpt
3/6/2026Senate/ received from House
3/6/2026SenateConference Committee Report
3/6/2026Bill Substituted by Conference Committee
3/6/2026House/ to Senate
3/6/2026HouseHouse Conference Committee Appointed
3/6/2026House/ received from Senate
3/6/2026House
Bill Text
Enrolled
3/12/2026
Substitute #4
3/6/2026
Substitute #3
3/5/2026
Substitute #2
2/24/2026
Substitute #1
2/17/2026
Introduced
2/6/2026
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