High Cost Infrastructure Tax Credit (HCITC)
WHAT INVESTMENTS CAN BE LEVERAGED THROUGH THIS INCENTIVE?
Utah offers a suite of tax credits for commercial projects that span significant infrastructure projects, as well as renewable energy, oil and gas and alternative energy installations.
The High Cost Infrastructure Tax Credit (HCITC) supports significant infrastructure investments in the state, supporting the cost‐effective and sustainable delivery of Utah’s commodities to domestic and global markets.
Standard qualifying projects that meet the infrastructure investment requirements are eligible to receive a nonrefundable tax credit of 30 percent of qualifying infrastructure-related state revenue generated annually, up to 50 percent of the cost of the infrastructure investment.
Who can apply
The HCITC is available to businesses whose Utah-based projects meet the following requirements:
• Expand or create new industrial, mining, manufacturing, or agricultural activity
• Are composed 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
• Electric transmission railroads and other linear infrastructure
• Tier 3 fuel projects at Utah's refineries
HOW IT WORKS
Qualifying infrastructure investment that is certified by the Utah Governor’s Office of Energy Development (OED) and approved by the Utah Energy Infrastructure Authority (UEIA) 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 UEIA Board meeting for consideration.
- In the case the applicant receives a favorable recommendation from the UEIA Board, OED 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
For additional information related to the HCITC, please find the application, detailed one-pager, and additional resources you may need:
Agreed-Upon Procedures Guide
HCITC Application FEE
Beginning on August 15, 2018, in accordance with Utah Code 63M-4-401, the Utah Governor’s Office of Energy Development will begin charging an application fee for HCITC projects that advance from the HCITC Preliminary Application stage to the HCITC Full Application stage.
Fees must be paid by credit card. Paying the fee does not guarantee that you will be approved for the tax credit. Application fees are non-refundable.
Fee Amount Estimated based on Private Investment:
• $150 fee for proposed projects $10M or less
• $250 fee for proposed projects more than $10M