Utah Admin. Code R357-15-5 - Application Review and Authorization Process for an Enterprise Zone Tax Credit
(1) The office
shall review submitted applications within a reasonable amount of time and
approve or deny the application as follows:
(a) the office shall review tax credits
claimed and documentation provided; and
(b) the office may request additional
documentation or information if the office determines that further verification
is required. Failure to comply with a request for additional documentation may
result in a denial of the application.
(2) The office will issue tax credit
certificates for tax credits for which an applicant has applied, qualified and
been approved by the office. This office may issue a partial approval if only
parts of the application are determined to qualify.
(3) The office must provide written notice
that includes its reasoning when denying any or a portion of a tax credit
application.
(4) If approved in
whole or in part, the office shall provide any necessary documents and
instructions, approved by the Utah Tax Commission, for claiming the tax
credit.
(5)
(a) When a business entity is seeking to
receive a tax credit for the purchase of a qualified business use vehicle, in
conformity with Subsection
63N-2-213(7)(f),
the office may not grant a tax credit for the trade in value of a qualified
business use vehicle that the business entity traded into the purchase of the
vehicle for which the tax credit is being sought;
(b) The amount claimed toward investment in a
qualified business use vehicle or a motor vehicle described in Subsection
R357-15-4(3)(b)(v)
is determined as acquisition cost, less any trade in value in accordance with
Subsection R357-15-5(5),
multiplied by the business use percentage.
(c) a qualified business use vehicle with
partial business use and personal use will be treated as 100% business
use.
(6) The trade in
value in a purchase may be claimed toward a state tax credit for private
capital investment that is qualifying investment in plant, equipment, or other
depreciable property when, in the purchase that qualifies as investment by the
business entity, there was traded in:
(a)
plant, equipment, or other depreciable property that qualifies for depreciation
on IRS Form 4562 and is not a qualified business use vehicle and if not
previously awarded;
(b) a qualified
business use vehicle that was traded in by an individual who is an owner or
officer of the applying business entity; or
(c) a building, property, or other real
estate investment that qualifies for depreciation on IRS Form 4562.
(7) The office may deny claims of
investment for software purchases that are cloud services or software as a
service.
(8) The office may deny
claims for investment purchased before the three previous taxable
years.
(9) The office may deny
claims for investments purchased from a business entity with the same
ownership.
(10) The office may deny
claims if the only connection to an enterprise zone for a business entity is a
P.O. Box.
(11) The office may deny
claims for investment that was transferred from personal use to business use
unless the original investment and personal use occurred within the same
taxable year the asset was placed into service by the applying business
entity.
(12) The office shall deny
claims if a business entity:
(a) produces
revenue of 51% or more in retail trade;
(b) is a residential rental property
business; or
(c) is a public
utilities business.
Notes
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