UtahH.B. 4752026 General SessionHouseWALLET

Development Planning and Coordination Amendments

Sponsored By: Calvin Roberts (Republican)

Signed by Governor

Utah State Fair CorporationBusinessEconomic DevelopmentHousingInterlocal CooperationPolitical Subdivisions (Local Issues)Independent EntitiesUtah Inland Port AuthorityGovernor's Office of Economic OpportunityInterlocal EntitiesMilitary Installation Development Authority

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Bill Overview

Analyzed Economic Effects

25 provisions identified: 4 benefits, 5 costs, 16 mixed.

Utah authorizes billions for road projects

Beginning May 6, 2026, Utah authorizes up to $2.077 billion in bonds for listed state highway projects. Allocations include $35 million for I-15 south of Spanish Fork, $28 million for Riverdale Road, and $18 million for the Provo west-side connector, plus $125 million and $10 million for prioritized highway projects. A separate transportation authorization caps acquisition and construction proceeds at $89.51 million and total bonds at $92 million, including permitted financing costs. Additional debt-service reserves under that authorization cannot exceed 1% of the certified amount. The transportation department must certify legal requirements and funding needs for the stated fiscal-year periods, and proceeds can fund only the listed projects.

Some public workers lose pension credit

Beginning May 6, 2026, employees of withdrawing public employers cannot receive service credit in the covered retirement systems when their employer elects to exclude new or all employees. The change depends on the employer making that withdrawal election. Losing service credit may reduce affected employees’ retirement benefits.

Transportation loans and local projects funded

Beginning May 6, 2026, Utah directs $20 million in bond proceeds and available funds to the State Infrastructure Bank for transportation loans and assistance. Another $20 million in bond proceeds goes to the economic development office for a transportation project in a Military Installation Development Authority project area. Salt Lake County allocations include $4 million for Taylorsville’s 4700 South rapid-bus planning, $7.3 million for Sandy’s Monroe Street improvements, and $2.9 million for two transit studies, plus other listed projects. Before funding, municipal and county recipients must certify project-only use and provide required legal and protective documents. Recipients must file annual cash-flow statements by January 1 and expenditure statements when each project financially closes.

Utah strengthens statewide business development coordination

Beginning May 6, 2026, the law creates an Economic Development Council chaired by the governor or a designee, with legislative, state authority, city, and county representatives. It sets goals, advises state leaders, coordinates major projects, gathers input, receives annual board reports, and recommends target industries at least every five years. The economic development office provides staff and space, and its director follows council guidance on industry recruitment, entrepreneurship, small businesses, and state-local coordination. The director also matches areas to targeted development, uses practical evidence-based approaches, and supports an integrated international trade strategy. The office no longer has to buy goods and services from Correctional Industries, but can still choose to do so.

Utah manufacturers can apply for grants

Beginning May 6, 2026, the Manufacturing Modernization Grant Program supports existing Utah businesses and reduces dependence on overseas manufacturing. Applicants must describe proposed spending, other funding sources, and partnerships. Recipients must sign agreements stating grant amounts, payment terms, and allowed expenses before receiving money. The program provisions are repealed July 1, 2028.

Distribution plan challenges lose standard procedures

Beginning May 6, 2026, Utah’s Administrative Procedures Act does not apply to challenges involving aspects of the specified distribution management plans. Challengers no longer use that act’s procedures for these disputes. The change does not itself set a payment or fee.

Major developers must file impact plans

Beginning May 6, 2026, major developers planning industrial or natural resources facilities must file financial impact statements and impact-alleviation plans. Filing is required at least 90 days before construction begins. Developers must file with the economic development office and local governments likely to face significant financial impacts. This duty applies even when developers do not plan to prepay property taxes.

Hotel aid fund loses tax deposits

Beginning July 1, 2026, the Hotel Impact Mitigation Fund stops receiving the specified required state sales and use tax deposits. Its other listed funding sources remain. Losing this source can leave less money for eligible hotel payments. The fund remains scheduled for repeal on July 1, 2028.

Life science credits require audit records

Beginning May 6, 2026, selected life science tax credit recipients must keep records supporting claims for at least four years. They must allow verification audits by the economic development office and Tax Commission. Investment agreements must authorize sharing the company’s tax returns, otherwise-confidential tax information, and workforce employment data with the economic development office. Companies must provide current ownership and capitalization tables, and agreements can require additional compliance and economic-impact data.

Tribal coordination duties cover more people

Beginning May 6, 2026, state and tribal coordination procedures cover designated individuals as well as agencies. Those covered must follow contact-person designation and notification requirements. The change broadens coordination duties but does not provide a household payment.

Affordable housing rules near transit

Housing and transit zones generally must make at least 12% of homes affordable: up to 9% for households earning no more than 80% of county median gross income, and at least 3% for households earning no more than 60%. Local governments meeting federal affordable-housing guidelines at 60% of area median income when approved are exempt. Each development phase must meet its required share, with a plan to keep homes affordable throughout the zone term. Zones generally need 51% residential land, 50 homes per residential acre, mixed uses, and multiple bedrooms in 25% of homes; specified transit-hub and bus zones can use 39 homes per acre. Proposals must also address transit use, owner-occupied housing, parking, water savings, air quality, planning, and access to jobs, education, and child care.

Tax data sharing keeps identity protections

Beginning May 6, 2026, the Tax Commission provides tax information when the economic development office requests it. Income tax information cannot include names or identifying numbers, and other tax information must have identifying details removed. The office can use the data only for fiscal estimates, fiscal notes, or statistics that prevent identification of a particular return. This changes agency access to data, not taxpayers’ tax bills.

Southern Utah welcome center gets authority

Beginning May 6, 2026, the economic development office can use up to $1.8 million in nonlapsing funds and donations for a Southern Utah Welcome Center. It can plan, design, build, or lease a center of up to 5,000 square feet. The office can request more state money unless it receives donations and begins design or construction. State funds can cover operation, maintenance, or capital improvements, and the project must follow state facilities requirements.

Counties can finance local investment funds

Beginning May 6, 2026, counties can sell industrial revenue bonds to support locally managed pooled venture and economic development funds. Qualifying bond-funded investment activity counts as a public purpose. The fund’s headquarters, investment decisions, and management must be in Utah or the city or county offering the bonds. Out-of-state investments cannot exceed the aggregate qualifying Utah-company investments the fund sponsored or brought to outside investors’ attention.

Convention projects use future tax growth

Beginning May 6, 2026, convention center zones can capture 100% of property tax growth and specified sales tax growth for 30 years; capital-city zones can also capture 50% of an additional specified sales tax increment. Zones must use connected parcels in eligible municipalities and stay within 50 acres unless the municipality approves more land; capital-city zones must include part of an existing convention center and a bordering city block and address required development goals. These zones do not count toward the county’s eight-zone housing and transit limit, and all parcels share one collection period starting no earlier than January 1 of the identified tax year. Capital-city revenue goes directly to the required public infrastructure district; elsewhere, proposals can send revenue to the municipality or such a district. Proposals must identify base years and start dates and set a connected sales tax boundary with the Tax Commission using ZIP Code collection areas that closely follow and fully cover the zone, with intersected collection areas eligible for full inclusion.

First home funding has firm limits

Beginning May 6, 2026, first home zones can capture up to 60% of each taxing entity’s property tax growth, without exceeding the approved amount, but cannot capture sales tax growth. Collection can last 25 consecutive years within a 45-year window, with no more than three collection periods triggered during the applicable 25-year period and notice required by January 1 of the start year. Zones must contain 10–100 developable acres and generally be connected; the committee can approve disconnected land when supporting evidence shows the change advances zone goals. Municipalities cannot propose zones in locations eligible for housing and transit zones or after the specified first-class county cap is reached. Proposals are also barred when the municipality’s reinvestment agency holds cash exceeding 20% of ongoing, uncommitted annual revenue.

First home zones require affordable homes

Beginning May 6, 2026, first home zones must provide at least 30 homes per acre on at least 51% of developable land, with mixed uses and half of those homes owner occupied. At least 25% of homes must remain owner occupied for 25 years after their original purchase. At least 12% of owner-occupied homes and 12% of non-owner-occupied homes inside the zone must be affordable. Homes outside the zone must include at least 20% affordable homes and can supply no more than half the homes counted for density. Municipalities can phase development to provide more required affordable homes in earlier phases.

Local development zones face count limits

A county can have no more than eight housing and transit zones at light-rail stations, excluding convention center zones. First-class counties can have no more than three specified rapid-bus zones and 11 combined specified reinvestment and first home zones. Beginning May 6, 2026, officials can also update zone boundaries when county assessors or auditors change relevant parcel boundaries. Municipalities handle housing and transit zone updates; the state economic development office handles convention center zone updates.

Some housing projects gain building rights

Owners gain a right to build qualifying mixed-use projects on undeveloped land in unincorporated counties that created a small transit district by January 1, 2022. The owner must have submitted an entitlement agreement by December 31, 2022, for land within one-third mile of a transit hub, including parcels crossing that radius. The county must not have approved the agreement by ordinance before that date, and cannot take action or enforce requirements that block or impede the project. Projects must include at least 33% affordable housing, meet the applicable residential-unit cap, and keep supporting commercial space at or below one-third of planned building space.

Transit projects capture local tax growth

Housing and transit zones can capture up to 80% of each taxing entity’s property tax growth above the base year; specified hub and bus zones with 39–49 homes per acre are capped at 60%. Commuter-rail and transit-hub parcels can collect for 25 consecutive years within 45 years; light-rail and rapid-bus parcels can collect for 15 within 30, with no more than three collection periods per project. Zones need at least 10 acres: specified commuter-rail and hub zones have a one-third-mile radius and 125-acre limit, while light-rail and rapid-bus zones have station-radius rules and a 100-acre limit, subject to exceptions. Parcels in existing project areas must wait until the earlier collection period ends, and affected local taxing entities must participate at the same rate after approval. Proposing local governments pay for independent financial gap studies; the state economic development office can accept up to $20,000 toward those costs.

Businesses get grants for high-paying jobs

Beginning May 6, 2026, qualifying for-profit businesses creating new high-paying Utah jobs can seek reimbursement for recruitment, hiring, training, and employment costs. Each employee must work at qualifying wage levels for at least 12 consecutive months before the business applies. Businesses must submit hiring and training plans. Grants are capped at the lesser of $10,000 per new job or 25% of estimated plan costs. Each grant reduces the business’s other economic development office awards or incentives.

College can self-fund fitness center

Beginning May 6, 2026, Salt Lake Community College can use up to $3.9 million of its own funds for a Strength and Conditioning Center. The center can cover up to 11,575 square feet. The college cannot use or request state funds for construction, operation, maintenance, or capital improvements. The project must follow state facilities administration requirements.

Universities can fund building upgrades

Beginning May 6, 2026, the University of Utah can use up to $8.2 million of its own funds for a Browning Building addition of up to 24,000 square feet. Utah State University can use up to $10 million of its own funds for up to 17,000 square feet of Fine Arts Complex additions or renovations. State funds cannot pay for either project itself, but can pay for later operation, maintenance, or capital improvements. Both projects must follow state facilities administration requirements.

Utah Tech can borrow for building

Beginning May 6, 2026, the State Board of Regents can issue debt for Utah Tech University to acquire the Avenna Center. Principal is capped at $6 million, apart from authorized issuance costs, capitalized interest, and debt reserves. The board must approve a resolution finding the amount and terms reasonable and necessary. When future legislative appropriations are needed to cover debt service, the bonds must provide for payment from legally available appropriations.

Convention center zones receive sales tax growth

The law takes effect May 6, 2026. For approved convention center zones, Utah transfers 100% of local sales and use tax revenue growth within established boundaries. This money goes to the designated municipality or public infrastructure district rather than general tax funds. In a capital-city zone, the district gets 50% of state revenue growth and 100% of local revenue growth. Transfers start after the proposal’s stated year, no earlier than January 1, 2026. The Utah State Tax Commission must receive the required notice, followed by a 90-day wait.

Sponsors & Cosponsors

Sponsor

Calvin Roberts
Republican • House

Cosponsors

Kirk A. Cullimore
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 164 • No: 9

House vote • 3/5/2026

House/ concurs with Senate amendment

Yes: 58 • No: 2

Senate vote • 3/4/2026

Senate/ passed 2nd & 3rd readings/ suspension

Yes: 27 • No: 2

Senate vote • 3/4/2026

Senate/ substituted

Yes: 0 • No: 0

Senate vote • 2/26/2026

Senate Comm - Favorable Recommendation

Yes: 3 • No: 0

House vote • 2/20/2026

House/ passed 3rd reading

Yes: 61 • No: 4