Tax Increment Financing Cities and counties may award incentives to companies locating in Economic Development Areas (EDA), Urban Renewal Areas (URA), or Community Development Areas (CDA). The county or city determines EDA/URA/CDA areas on a local level. Incentive dollars are generated through the creation of new "property tax increment" that a development will generate. When a company constructs a new building for example, it's property tax increment is the result of the assessed value of the building multiplied by the property tax rate. In an EDA or URA, all public entities entitled to property tax agree to rebate their increment back to the new development for a specified period of time ot incent the development to occur. In a CDA, public entities must opt-in on a property tax rebate if they see fit. Incentives are awared as a percentage of the tax increment created by the development EDA/URA/CDA Designation
Revolving Loan funds (RLF's) Numerous RLF programs have been established in the state to promote economic development within Utah. RLF's are a pa financing measure used primarily for development and expansion of small businesses. Communities in Utah offer RLF's to provide access to a flexible source of capital to be used in combinations with more conventional sources. Often RLF's act as a bridge between the amount a borrower can obtain through private market funding and the amount needed to start or sustain a business. RLF's issue loans at competitive market rates. Durations and loan amounts vary according to the use of funds. For additional information, please visit the following link:
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