What is the High Cost Infrastructure Tax Credit (HCITC)?
The High Cost Infrastructure Tax Credit (HCITC)
is an incentive that supports investments in qualifying cost-intensive infrastructure projects. The purpose of the program is to promote the business expansion and natural resource development that is critical to advancing Utah’s economy. Want to learn more? Download our one page fact sheet
Who can use the HCITC?
The HCITC is available to businesses whose Utah-based projects
- expand or create new industrial, mining, manufacturing, or agricultural activity
- are comprised of at least 10 percent (or $10,000,000) of infrastructure costs
- generate new state revenues that are directly attributable to new infrastructure investment
Qualifying investments in infrastructure may include:
- Energy delivery systems
- Water delivery systems
- Road improvements
How it works
Qualifying infrastructure investment that is certified by OED and approved by the Board will generally receive a non-refundable tax credit of 30 percent of qualifying infrastructure-related state revenue generated during a qualifying tax period. The total tax credit authorized for a project will be 50 percent of the cost of the infrastructure investment. The tax credit will generally only apply to new state revenues that are directly attributable to new infrastructure investment.
What is the HCITC application process?
The application for the HCITC consists of four steps:
- Interested companies must submit a pre-application. After receiving approval for the pre-application, the applicant must complete at least one meeting with OED’s Energy Infrastructure Incentives Manager to review project details.
- If the Incentives Manager finds that all eligibility requirements and qualifications are satisfied, the applicant will be invited to submit an application. Upon submission, the application will be reviewed again by the Incentives Manager, who will schedule a second meeting with the applicant to discuss further project details.
- If approved, the application will be included in the next Utah Energy Infrastructure Authority (UEIA) Board meeting for consideration.
- In the case the applicant receives a favorable recommendation from the UEIA Board, the Governor's Office of Energy Development will create a tax credit authorization letter whereby the applicant and the office will enter into an agreement authorizing a post-performance, non-refundable tax credit calculated in accordance with Utah Code 63M-4-603 and Utah Administrative Rules R362-4-5.
Resources and Application
Here are all the applications, documents, information, and resources you need:
Starting August 15, 2018 in accordance with Utah Code 63M-4-401, the Governor’s Office of Energy Development will begin charging a fee per application submitted. Fees must be paid by credit card.
You will not be able to receive your TC-40E tax form until the fee has been paid. Paying the fee does not guarantee that you will be approved for the tax credit.
- $150: Private investment $10M or less
- $250: Private investment more than $10M