63N-2-104.2. Written agreement -- Contents -- Grounds for amendment or termination.
(1) If the office determines that a business entity is eligible for a tax credit under Section, the office may enter into a written agreement with the business entity that: 63N-2-104.1 establishes performance benchmarks for the business entity to claim a tax credit, including any minimum wage requirements; specifies the maximum amount of tax credit that the business entity may be authorized for a taxable year and over the life of the new commercial project, subject to the limitations in Section; 63N-2-104.3 establishes the length of time the business entity may claim a tax credit; requires the business entity to retain records supporting a claim for a tax credit for at least four years after the business entity claims the tax credit; requires the business entity to submit to audits for verification of any tax credit claimed; and requires the business entity, in order to claim a tax credit, to meet the requirements of Section. 63N-2-105
(2) In establishing the terms of a written agreement, including the duration and amount of tax credit that the business entity may be authorized to receive, the office shall: authorize the tax credit in a manner that provides the most effective incentive for the new commercial project; consider the following factors: whether the new commercial project provides vital or specialized support to supply chains; whether the new commercial project provides an innovative product, technology, or service; the number and wages of new incremental jobs associated with the new commercial project; the amount of financial support provided by local government entities for the new commercial project; the amount of capital expenditures associated with the new commercial project; whether the new commercial project returns jobs transferred overseas; the rate of unemployment in the county in which the new commercial project is located; whether the new commercial project creates a remote work opportunity; whether the new commercial project is located in a development zone created by a local government entity as described in Subsection; 63N-2-104(2) whether the business entity commits to hiring Utah workers for the new commercial project; whether the business entity adopts a corporate citizenry plan or supports initiatives in the state that advance education, gender equality, diversity and inclusion, work-life balance, environmental or social good, or other similar causes; whether the business entity's headquarters are located within the state; the likelihood of other business entities relocating to another state as a result of the new commercial project; the necessity of the tax credit for the business entity's expansion in the state or relocation from another state; whether the proposed new commercial project might reasonably be expected to occur in the foreseeable future without the tax credit; and the location and impact of the new commercial project on existing and planned transportation facilities, existing and planned housing, including affordable housing, and public infrastructure; and consult with the GOED board.
(3) In determining the amount of tax credit that a business entity may be authorized to receive under a written agreement, the office may: authorize a higher or optimized amount of tax credit for a new commercial project located within a development zone created by a local government entity as described in Subsection; and 63N-2-104(2) establish by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, a process by which the office closely approximates the amount of taxes the business entity paid under Title 59, Chapter 12, Sales and Use Tax Act, for a capital project.
(4) If the office identifies any of the following events after entering into a written agreement with a business entity, the office and the business entity shall amend, or the office may terminate, the written agreement: a change in the business entity's organization resulting from a merger with or acquisition of another entity located in the state; a material increase in the business entity's retail operations that results in new state revenue not subject to the incentive; or an increase in the business entity's operations that: is outside the scope of the written agreement or outside the boundaries of a development zone; and results in new state revenue not subject to the incentive.