Utah Admin. Code R357-3-107 - Modification of Agreement
(1) GOEO may
change, or a business entity may request to change, the terms of a tax credit
offer or contract as set forth in this section.
(2) Under extraordinary circumstances, a
business entity may request substantive modifications to the terms of the tax
credit agreement if:
(a) there is a
substantial change to new commercial project plan; and
(b) changing the terms of the tax credit
would benefit the state.
(3) GOEO and the business entity may make
nonsubstantive modifications to the tax credit contract to:
(a) correct clerical errors made in the
initial application, the offer, the contract, or the tax credit;
(b) make technical changes that do not alter
the tax incentive amount or violate any state or federal law; or
(c) adjust the timeline:
(i) less than 24 months; or
(ii) up to 48 months for unforeseen
circumstances, as determined by the office.
(4) Substantive modifications require GOEO
Board consultation before the Executive Director's approval or
denial.
(5) GOEO shall document and
maintain requests and modifications.
(6) When a business entity acquires another
company with employees in Utah or if another Utah company acquires a business
entity and the office can distinguish between both entities' employees and
separate how much new state revenue is generated from the acquiree and
acquirer, no changes to the baseline employees or new state revenues will be
made.
(7) When a business entity
acquires another company with employees in Utah or if another Utah company
acquires a business entity and the office cannot separate the acquiree's and
acquirer's employees or new state revenue the office shall:
(a) increase the baseline to the lesser of
the acquiree's number of full-time positions as determined by the office:
(i) on the GOEO Board approval date;
or
(ii) on the acquisition date;
and
(b) increase
baseline state revenue to the same time period as chosen for baseline
jobs.
(8) A company may
request to exclude the 2020 EDTIF period. This request must be made before July
1, 2025. If a request is granted the contract must be amended that:
(a) establishes a one-year gap where no
incentive is awarded;
(b) delays
annual job projections by one year moving forward; and
(c) extends the contract by one
year.
(9) The office may
deny a request to exclude the 2020 EDTIF period for any reason.
Notes
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(1) GOEO may change, or a business entity may request to change, the terms of a tax credit offer or contract as set forth in this section.
(2) Under extraordinary circumstances, a business entity may request substantive modifications to the terms of the tax credit agreement if:
(a) there is a substantial change to new commercial project plan; and
(b) changing the terms of the tax credit would benefit the state.
(3) GOEO and the business entity may make nonsubstantive modifications to the tax credit contract to:
(a) correct clerical errors made in the initial application, the offer, the contract, or the tax credit;
(b) make technical changes that do not alter the tax incentive amount or violate any state or federal law; or
(c) adjust the timeline:
(i) less than 24 months; or
(ii) up to 48 months for unforeseen circumstances, as determined by the office.
(4) Substantive modifications require Board consultation before the Executive Director's approval or denial.
(5) GOEO shall document and maintain requests and modifications.
(6) When a business entity acquires another company with employees in Utah or if another Utah company acquires a business entity and the office can distinguish between both entities' employees and separate how much new state revenue is generated from the acquiree and acquirer, no changes to the baseline employees or new state revenues will be made.
(7) When a business entity acquires another company with employees in Utah or if another Utah company acquires a business entity and the office cannot separate the acquiree's and acquirer's employees or new state revenue the office shall:
(a) increase the baseline to the lesser of the acquiree's number of full-time positions as determined by the office:
(i) on the Board approval date; or
(ii) at the time of acquisition; and
(b) increase baseline state revenue to the same time period as chosen for baseline jobs.
(8) A company may request to exclude the 2020 EDTIF period. If a request is granted the contract must be amended that:
(a) establishes a one-year gap where no incentive is awarded;
(b) delays annual job projections by one year moving forward; and
(c) extends the contract by one year.
(9) The office may deny a request to exclude the 2020 EDTIF period for any reason.