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
40 provisions identified: 9 benefits, 9 costs, 22 mixed.
Governments can share protected project records
Beginning May 6, 2026, governments can share protected economic development records with government entities considering a project. Recipients do not need a nondisclosure agreement with the person who requested protection. Eligible recipients include specified state entities, the Utah Fairpark Area Investment and Restoration District, and counties or cities where the opportunity may be located. Receiving governments must keep the records protected.
Development agencies must report project finances
Beginning May 6, 2026, the state economic opportunity office must maintain a public online database of agencies and project areas. By June 30 each year, agencies must report values, money received and spent, development, budgets, and authorized funds. This covers active project areas whose funding collection periods have not expired; agencies without active areas report that status until dissolved. Old and new agencies and project areas are covered. The office must report compliance to the Political Subdivisions Interim Committee by September 1.
Development authorities gain local project roles
Beginning May 6, 2026, certain development authorities count as local government entities in the covered economic development process. For state land, an authority must have legal power to manage the land. For authority-owned land, it must own the land involved. On July 1, 2027, the law also repeals a county findings requirement for certain proposed economic development projects.
Local incentives expand for nonnuclear energy
Beginning May 6, 2026, counties and cities can offer financial incentives for nonnuclear electricity projects outside designated energy zones. Existing exceptions remain for municipal power projects and projects using only intermittent energy sources. Projects with a project-area plan approved before July 1, 2026, also retain their exception. The law sets no incentive amount.
Port cleanup projects can include land
Beginning May 6, 2026, acquiring an interest in land counts as remediation within an Inland Port Authority remediation project area. The Authority and public entities can treat these acquisitions as part of remediation work. The law provides no direct household payment.
Affordable homes required near transit
Beginning May 6, 2026, most regional transit development proposals must make at least 12% of homes affordable. Up to 9% may serve households earning no more than 80% of county median gross income. At least 3% must serve households earning no more than 60%. Each development phase must meet the 12% requirement, with a plan to preserve affordability throughout the zone's term. The percentages do not apply when, at approval, the creating entity meets federal affordable-housing guidelines at 60% of area median income.
First home villages reserve affordable homes
Beginning May 6, 2026, first home village proposals must reserve affordable homes for both owners and other residents. At least 12% of owner-occupied homes inside the zone must qualify as affordable housing. At least 12% of non-owner-occupied homes inside the zone must also qualify. At least 20% of related homes included outside the zone must qualify. These requirements do not guarantee a household a home or set an individual benefit amount.
Zones gain flexible property tax collections
Beginning May 6, 2026, reinvestment zones overlapping existing community reinvestment projects can capture tax growth above their base year, up to the allowed maximum. In a capital-city convention center zone, a city or public infrastructure district can file separate collection-start notices for parcels or subareas. Collection for that zone must begin within five years after proposal approval. These rules change project financing, not household property tax rates.
Counties can fund energy zone projects
Beginning May 6, 2026, counties collecting the county energy excise tax can give revenue to zones containing a large-load data center. Counties and cities receiving energy-zone distributions can fund electric and water systems, local job training, or incentives within statutory limits. They can also transfer money to the zone agency or an overlapping regional development authority. Transfers to a regional authority require an agreement with the county or city. The law does not require transfers or set spending amounts.
Covered development agreements cannot provide subsidies
Under the covered participation agreements, an agency cannot provide a direct subsidy. The other party cannot receive one through that agreement. The provision states no subsidy amount or direct household tax change.
Development agencies face fees and withholding
Beginning May 6, 2026, the state economic development office may charge counties, cities, or agencies for database submissions. It must set fees by rule; households are not directly charged. Missing required project-area information by September 30 triggers a state auditor referral and public noncompliance notice. After two consecutive years without information, the office must notify county officials by July 31 of the second year; treasurers withhold 20% of tax increment until reporting is complete, then release it. Missing a required report that an agency has no active project areas also triggers an auditor referral.
Regional agencies must manage zone money
Beginning May 6, 2026, a regional zone's creating entity must name an agency to manage development and hold revenue. Joint proposals must assign management and revenue duties to an agency or explain how agencies share them. Governmental and private recipients must agree with the creating entity or agency on revenue use before receiving money. The creating entity must track revenue and report when the committee's maximum is reached. Upon request, the agency must repay the creating entity for the financial analysis required for the zone proposal.
Counties face development zone count caps
Beginning May 6, 2026, each county can have at most eight light rail increment zones, excluding a convention center zone. Each county can also have at most eight regional development zones, and each regional zone must cover at least 10 acres. First-class counties face an additional cap of three housing and transit zones at bus rapid transit stations. They also face caps of 11 combined housing-and-transit and first-home investment zones, and 14 combined increment zones. The 14-zone count excludes a convention center reinvestment zone.
New first home zones end in 2028
Beginning January 1, 2028, municipalities cannot propose new first home investment zones. They can still amend proposals pending on December 31, 2027. The Governor's Office of Economic Opportunity can continue its duties for those pending proposals. This cutoff limits a local development tool, not household eligibility for housing aid.
Transit developments must include dense housing
Beginning May 6, 2026, regional transit development proposals must address housing, transit, water savings, air quality, and mixed-use development. They must also address access to jobs, education, and child care. Generally, at least 51% of developable land must serve residential uses, averaging at least 50 homes per residential acre. Proposals must include mixed-use development, with more than one bedroom in at least 25% of homes. The separate standard for transit hubs and bus rapid transit stations requires the same 51% residential share and 50-home density.
Transit zones require property owner agreements
Beginning May 6, 2026, approved housing and transit zones require local governments to make agreements with relevant property owners. One agreement must identify the density needed to carry out the proposal. Entitlement, development, or participation agreements must follow as soon as reasonably possible. Without such an agreement within two years, the municipality or public transit county must report on agreements and land-use rules. Every affected taxing entity must participate at the same rate set by the approved proposal.
Counties can tax large energy users
Beginning May 6, 2026, counties may tax delivered gas or electricity for large-load customers and qualifying data centers on unincorporated land. The excise tax is additional to county sales and use tax and cannot exceed 6% of delivered value. In covered project areas, county and regional-authority municipal energy taxes together cannot exceed 6%; consumers in both qualifying groups pay only one county energy excise tax. Suppliers collect and remit quarterly and must separately list any tax passed to consumers. Adoption, repeal, or rate changes take effect at a calendar quarter's start after at least 90 days' notice. The Tax Commission deposits 10% of collected revenue into the state reinvestment account and distributes 90% to the levying county, subject to statutory distribution rules.
Water-heavy port projects lose recruitment incentives
Beginning May 6, 2026, Inland Port Authority standards must bar a property-tax recruitment incentive for high-water-use projects. The rule covers new or expanded commercial and industrial development on land under the Authority's jurisdiction. It applies when expected drinking-water use exceeds 200,000 gallons per day, measured on an annual basis. It does not set household water rates or household use limits.
Protected records gain remedies and caps
Beginning May 6, 2026, people who requested protection for covered records shared between government entities can seek court remedies. They can ask a court to stop an intentional improper disclosure that has occurred or is imminent. They can also seek damages, subject to liability limits set by rule. The state risk manager must establish the first limits by July 1, 2026, and establish rules by July 1 of each even-numbered year afterward. The law does not state a dollar cap.
Property owners control district boundary changes
Beginning May 6, 2026, public infrastructure district annexations and withdrawals require board approval and signed consent from 100% of surface property owners in the affected area. Annexations must also be authorized by the district's governing document or creation resolution. Adding land outside the creating county or city requires approval from the county or city where that land lies. Withdrawn property still owes district taxes, fees, or assessments until bonds assigned to that area, including replacement bonds, are paid.
Business records gain broader confidentiality protections
Beginning May 6, 2026, governments can protect qualifying information supplied while recruiting or negotiating a business expansion or move to Utah. Related nondisclosure agreements are also covered, and submitters must provide the information state law requires. Written business-confidentiality claims and reasons can arrive with a record or within a reasonable time afterward; protection is not guaranteed. Utah public colleges must apply the written-claim rule across the full covered category of records. Colleges must notify claimants when they classify those records as public.
Data center zones face infrastructure checks
Beginning May 6, 2026, large data center zone proposals must map boundaries and assess nearby power systems. Plans must identify improvements, realistic schedules, local economic benefits, and required local support, while aligning with state goals. Approval is required when applications demonstrate suitable power access, adequate water, and all required development-plan criteria. Proposals must include diversion of all personal property tax revenue and may request up to 60% of property tax increment. Zones cannot overlap specified community redevelopment, inland port, or military development project areas. Starting January 1 after designation, treasurers distribute approved tax shares annually; the committee sets capture rates and approved personal property tax allocations between the creating locality and state reinvestment account.
Development zones gain financing and partnerships
Beginning May 6, 2026, agencies can issue legally allowed bonds for zone projects, including interest, reserves, and financing costs. They can create financing districts inside zones and pledge zone money to repay district bonds. Infrastructure financing districts serving regional development zones can also issue bonds for allowed property and facility costs. Agencies can partner with qualified private operators after reviewing their applications and finding that the partnership supports zone goals. Agreements can set ownership shares based on investment or create leases.
Local agencies manage zones within limits
Beginning May 6, 2026, counties and cities can direct their community reinvestment agencies to handle regional development-zone duties. Agency policies must follow the approved zone proposal and the approving committee's conditions. When the agency and creating government determine a change is needed, the creating government must submit a zone modification proposal.
Major projects gain a financing pathway
Beginning May 6, 2026, entities with general land-use authority can propose major economic development opportunities outside the transit and first home village categories. Proposals must show likely significant capital investment and meet additional criteria set by state rule. Large electricity users and qualifying data centers must also meet energy-zone requirements. A municipality can still submit a proposal after its county finds the project is not regionally significant. For that route's economic development proposals, county participation in property tax increment cannot exceed 40%.
One state rule reaches back further
The law applies Utah Code Section 63N-3-605 retrospectively beginning May 4, 2022, despite the act's May 6, 2026 effective date. The supplied provision does not explain that section's underlying rule. It does not establish whether this earlier reach creates household savings, costs, or duties.
Cities face home ownership zone deadline
Beginning May 6, 2026, cities can create home ownership promotion zones, but only before January 1, 2028. A zone must cover no more than 10 connected acres entirely within the city. The land must be rezoned from fewer than six homes per acre to at least six. No residential building permits can cover the land when the zone is created. Zones created before the deadline continue until dissolved.
Counties can create home ownership zones
Beginning May 6, 2026, counties can create home ownership promotion zones before January 1, 2028. Each zone must cover no more than 10 connected acres of unincorporated land, all within the county. Land must be rezoned from fewer than six homes per acre to at least six, with no existing residential building permits. Creation requires a county resolution, a planning commission recommendation, and required notices. A zone created before the deadline continues until dissolved.
First home villages get occupancy rules
Beginning May 6, 2026, first home village proposals must address housing, walking, transportation, water, air quality, and access to services. Their dense, mixed-use core must offer opportunities for shopping, child care, and jobs. At least 51% of developable land must provide 30 homes per acre, with 50% of homes counted toward density owner occupied. At least 25% of homes inside the zone must stay owner occupied for 25 years after the original purchase; qualifying condominiums start the 50% rule one year after completion and a certificate of occupancy. Related homes outside the zone can count toward density and owner occupancy, but cannot exceed half of homes counted for density.
First home zones follow parcel boundaries
Beginning May 6, 2026, municipalities may adjust first home investment zone boundaries when county assessors or auditors change related parcel boundaries. After proposal approval, the state economic development office must consult the county assessor about a parcel-boundary adjustment. Tax-increment collection must use each parcel's legal boundary when its collection period is triggered. These rules do not directly set a household's property tax rate.
Infrastructure districts bear their own costs
Beginning May 6, 2026, a public infrastructure district alone bears its financial costs, including accounting, audits, and budgets. Its legal duties, liabilities, judgments, and claims do not fall on its creating government, Utah, or other political subdivisions. District governing documents can assign startup costs to applicants and provide for repayment of specified initial costs involving the creating government.
New reinvestment zones face 2028 cutoff
Beginning January 1, 2028, cities and public transit counties cannot propose new housing and transit reinvestment zones. The state office also stops the covered analysis and funding work for new proposals, and the state cannot propose or consider new convention center zones. Committee approval of housing-and-transit, first-home investment, and convention center proposals is limited to proposals pending on December 31, 2027. Pending housing-and-transit proposals can still be amended. All three types of zones existing on January 1, 2028, continue under their governing rules until dissolved.
Reinvestment zones get tax timing rules
Beginning May 6, 2026, a zone's base year is its approval year or a year chosen at approval, no more than five years later. Capital-city convention center zones use 2023 and may stagger collection across parcels or subareas, starting within five years after approval. Parcel collection must use the legal boundary in place when collection is triggered. Approved housing and transit or convention center zones follow the law in effect when their applications are approved. Approved housing and transit proposals submitted before May 1, 2024, instead use the base-year definition in effect before January 1, 2023.
Transit housing zones get tighter boundaries
Beginning May 6, 2026, light rail and bus rapid transit housing zones generally have a one-quarter-mile radius; earlier larger-radius exceptions are removed. Third- and fourth-class cities can connect two or three stations within 0.95 miles of one another on the same line or dedicated bus lane. Connected zones must stay within one-quarter mile of the stations or connecting route; two-station zones allow 100 noncontiguous acres, while three-station zones allow 250 and count as two zones. After approval, the state office must consult the assessor on adjustments for land excluded or split by radius rules, and adjustments must advance zone goals. Adjustments cannot include parcels entirely beyond one-half mile from light rail or bus rapid transit, or two-thirds mile from commuter rail; added housing-zone acreage must be offset by removed acreage.
Zone money can fund nearby homes
Beginning May 6, 2026, cities and public transit counties can use housing-and-transit zone money for affordable homes outside the zone. The homes must remain within the proposing municipality and meet the law's affordable-housing standards. Development must provide at least six homes per acre and require owner-occupancy for at least 25 years. No building permit can have been issued by the date of zone approval. The local government must find that the spending directly benefits the zone.
Inland port projects share development revenue
Beginning May 6, 2026, the Utah Inland Port Authority must send 1% to 5% of tax differential revenue from areas adopted on or after September 30, 2026, to the state reinvestment account. Its board sets the percentage and annual or quarterly payment schedule. For older areas, participating counties or cities may direct up to 5% to the account in coordination with the Authority. Staff may negotiate flat payments or revenue shares from Authority-funded private real estate projects; percentage agreements must state payment frequency and duration. After remediation and development, private-sector profits must contribute annually at a board-set rate, chosen with legislative fiscal staff input, capped at 50% of the area's annual revenues.
Local data center incentives face limits
Beginning May 6, 2026, counties and cities cannot offer large-load data center incentives outside regional development zones, except for project areas or agreements established before May 6, 2027. Beginning May 6, 2027, local governments generally cannot offer these incentives, but designated zone funding and local energy-tax funding remain allowed. Regional authorities using project-area funds must have a project containing the center that overlaps a regional zone; spending is capped at 60% of property tax growth in the overlapping area. Incentives from received or shared diverted personal property taxes are capped at 80%; counties and cities can separately use up to 80% of their applicable annual energy-tax revenue. Earlier agreements or qualifying survey-area resolutions can continue, but incentive terms and values cannot increase. Sales and use tax exemptions do not count as incentives under the general ban.
Local development zones face tax collection limits
Beginning May 6, 2026, regionally significant development zones face limits on overlapping tax-increment collection—using growth in property-tax revenue for projects. Generally, collection from a parcel must wait until an existing project's collection period ends. Overlap with housing and transit reinvestment zones or first home investment zones is generally barred. Exceptions allow overlap without collecting in the shared area, or collection after the other zone's collection period ends. When taxing entities previously agreed to a specified collection end date or duration, they must affirmatively agree to the new collection. Overlap with Military Installation Development Authority, Utah Fairpark Area Investment and Restoration District, or Utah Inland Port Authority project areas requires that authority's consent. In those areas, the creating entity's agency and regional economic development authority together cannot capture more than 60% of annual tax increment.
Regional zones capture taxes with limits
Beginning May 6, 2026, approved regional zones start on the January 1 set by the approval schedule. Affected taxing entities must participate under committee terms, generally at equal rates. Tax-increment capture is capped at 70% for transit zones and first home villages, and 60% for economic development opportunities. Agencies may collect for up to 25 total years, ending no later than 40 years after the zone starts. Personal property tax diversion can last up to 25 years; energy-implications zones must divert all such revenue. The committee also sets boundaries, maximum revenue, and collection periods; collection cannot precede the zone's start. Officials must give notice by October 1 of the prior year and give affected taxing entities 90 days' notice before parcel collection. Tax-growth calculations include regional zones and count value no longer provided to their agencies as project-area new growth.
Zone funding comes with spending limits
Beginning May 6, 2026, agencies can fund zones with authorized property-tax revenue and county contributions; counties need not contribute. Spending must support allowed development costs, infrastructure, improvements, or bond payments within the zone. Spending in an impacted primary area requires a finding that it directly benefits the zone and advances its goals. Administrative costs are capped at 3% of annual revenue, or 3% retained after participation-agreement payments, as applicable. Subject to the energy-zone exception, agencies must send a committee-set 5% to 25% of specified prior-year property-tax revenue to the State Reinvestment Restricted Account by March 1.
Sponsors & Cosponsors
Sponsor
Calvin Roberts
Republican • House
Cosponsors
Kirk A. Cullimore
Republican • Senate
Roll Call Votes
Senate vote • 3/6/2026
Senate Conference Committee - Final Passage
Yes: 27 • No: 1
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
House vote • 3/6/2026
House Motion to Adopt Joint Conference Comm Rpt
Yes: 0 • No: 0
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
Senate vote • 3/2/2026
Senate Comm - Favorable Recommendation
Yes: 3 • No: 0
House vote • 2/25/2026
House/ substituted
Yes: 0 • 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 • 2/24/2026
House/ circled
Yes: 0 • No: 0
House vote • 2/18/2026
House Comm - Substitute Recommendation
Yes: 7 • No: 1
House vote • 2/18/2026
House Comm - Favorable 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