Utah’s Key Economic Incentive Programs

Utah is recognized for its pro-business environment and robust economic growth strategies. Three of the state’s key programs — the Economic Development Tax Increment Financing (EDTIF), Rural Economic Development Tax Increment Financing (REDTIF), and the Custom Fit Workforce Training Program — are prime examples of how Utah nurtures businesses of various sizes and sectors. 

From incentivizing large corporate expansions in urban centers to supporting job creation in rural counties and upskilling local workforces, these programs collectively offer a complete toolkit for companies looking to thrive in the Beehive State. In this blog, we’ll explore the targeted industries each program serves, the primary incentives offered, how to apply, and how ongoing compliance ensures success for both businesses and local communities.

1. Economic Development Tax Increment Financing (EDTIF)

The EDTIF program, administered by the Governor’s Office of Economic Opportunity (GOEO Utah), fosters and develops key industry sectors in Utah’s five most urban counties — Salt Lake, Davis, Utah, Washington, and Weber. By incentivizing job creation and capital investment, EDTIF helps strengthen the local economy and promote additional employment opportunities. 

Incentives take the form of post-performance tax credit rebates (grants) for up to 30% of new state revenue (sales, corporate, and withholding taxes) over the life of the project, which can extend to 20 years but more commonly lasts five to 10 years. Companies qualify by meeting performance benchmarks, including creating high-paying jobs (at least 110% of the average county wage), investing capital, and paying state taxes. Priority is given to projects in strategic targeted industries such as advanced manufacturing, aerospace and defense, financial services, life sciences/healthcare, and software/IT.

Once a company’s EDTIF application is approved — often within as little as three months — GOEO Utah enters into a contractual agreement outlining performance benchmarks. Each year, the state evaluates whether the company has met its contractual obligations in terms of job creation, wages, and capital investment. Once verified, the qualifying business can claim its annual tax credit rebate. This performance-based structure ensures that state resources encourage genuine economic growth while supporting companies committed to meaningful expansion in Utah’s urban regions. 

2. Rural Economic Development Tax Increment Financing (REDTIF)

The REDTIF program extends many of the same benefits and structures as EDTIF to Utah’s more rural counties (all those outside Salt Lake, Davis, Utah, Washington, and Weber). Offering a post-performance, refundable tax credit rebate, REDTIF encourages businesses to begin or expand operations in smaller communities. Companies that meet benchmarks such as job creation (paying at least 100% of the average county wage), new capital expenditures, and payment of state taxes can receive up to 50% of the new state revenue their project generates. While third-class counties are typically eligible for up to 50%, fourth, fifth, and sixth-class counties receive a 50% rebate for all qualifying projects. Like EDTIF, the program lasts up to 20 years but more often spans five to 10 years, and targeted industries are preferred but not strictly required.

Qualifying for a REDTIF award follows a familiar application process: a pre-application review, incentive committee evaluation, and public board meeting approval. Once approved, companies enter into a contractual agreement, and GOEO Utah verifies each year whether key performance metrics have been met before rebates are issued. In addition to fostering economic growth, participation in REDTIF may open doors to local support and complementary incentives from taxing entities, ultimately helping create jobs, boost local economies, and keep rural Utah thriving. 

3. Custom Fit Workforce Training Program

Custom Fit is a collaborative training program designed to meet the specific needs of Utah businesses. Whether a company requires technical training, safety certifications, computer skills, or leadership development, a Utah System of Higher Education (USHE) institution in the company’s region will work closely with that business to create a tailored plan. Funded by the Utah Legislature and administered through a dynamic partnership of USHE institutions, the state of Utah, and local businesses, Custom Fit supports upskilling current employees (incumbent workers) to strengthen the local economy and workforce.

Eligible for-profit companies (with special approval for not-for-profit organizations that demonstrate significant economic impact) located in Utah can benefit from Custom Fit’s cost-sharing model. The program pays for a substantial portion of the training expenses, while the company typically contributes at least 50%. Regional Custom Fit providers may focus on local priorities such as helping existing companies remain competitive, supporting new or expanding businesses, and fostering diversity in the workforce to ensure the program delivers maximum impact for both employers and employees statewide. 

Conclusion

Utah’s robust economic development programs reflect the state’s commitment to nurturing growth across diverse regions and industries. EDTIF brings top-tier corporate expansions into Utah’s urban hubs, REDTIF ensures rural communities share in the state’s prosperity, and Custom Fit equips local workforces with skills to keep pace in a rapidly changing economy. Whether you’re a thriving tech startup in Salt Lake City, a manufacturer in rural Utah, or a well-established company seeking specialized employee training, these programs provide the incentives and support needed to succeed.