Utah Admin. Code R362-4-7 - Tax Credit Approval and Certification
(1) The Office is responsible for certifying
high cost infrastructure tax credits.
(2) After receiving a complete application,
including requested documents supporting an applicant's tax credit eligibility,
the Office shall determine whether the applicant has met the eligibility
requirements described in Subsection
63M-4-603(1) and
in this rule.
(3) If, after
evaluating an application, the Office determines that an applicant is eligible
for a tax credit, the Office shall refer the applicant to the Board for Board
approval of tax credits based on the Board's evaluation of the project's
benefit to Utah based on considerations described in Section
63M-4-603 and in this rule. The
Board may find the applicant's project benefits the state if the project
satisfies some or all of the criteria described in Section 63M-4-603.
(4) If an eligible applicant receives a
favorable recommendation from the Board as described in Subsection
63M-4-603(3) and
this rule, the Office will enter into an agreement described in Subsection
63M-4-603(3).
(a) The agreement may include a tax credit
authorization based upon the projected cost of the high cost infrastructure
project as submitted in the completed application. Nevertheless, the applicant
may only claim a tax credit with a tax credit certificate based on the
applicant's actual infrastructure-related revenues reported to the Utah State
Tax Commission for the same tax year for which the tax credit is being
claimed.
(b) The agreement may
contain other terms and conditions necessary to administer the tax credit and
satisfy the requirements of the Act, including requiring the applicant to
provide the actual infrastructure construction cost to complete the high cost
infrastructure project when available to allow the Office to correctly adjust
the tax credit authorization.
(c)
The agreement may include conditions under which the agreement or the tax
credit or both may be modified or withdrawn, including addressing substantive
changes to the applicant's project not included in the application.
(d) As part of the agreement, the applicant
must provide the Office annual reports prepared by an independent certified
public accountant verifying the high cost infrastructure project's
infrastructure-related revenue during the taxable year for which a tax credit
is being claimed, as well as granting the Office access to relevant tax
records.
(5) Tax credits
authorized by the Office can only be used to offset the applicant's Utah State
tax liability under Title 59, Chapter 7, Corporate Franchise and Income Taxes;
and, Title 59, Chapter 10, Individual Income Tax.
(6) The applicant must notify the Office and
the Board of other tax credits it has applied for or has received when applying
for a high cost infrastructure tax credit or during the performance period of a
high cost infrastructure tax credit agreement. Additional tax credits and
incentives may be taken into consideration in the Board evaluation of the
project's benefit to Utah based on the criteria contained in Section
63M-4-603.
(7) If the applicant receives other tax
credits or incentives after a high cost infrastructure tax credit Agreement has
been established with the Office, the Board may reconsider the project's
benefit to Utah based on the criteria contained in Section 63M-4-603, and the
Office may amend the Agreement based on the Board's reconsideration of high
cost infrastructure tax credit approval for the project.
Notes
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