Committee reviews Rural Jobs Act tax credit; GOEO reports capital deployed to rural businesses

The committee reviewed Utah’s rural jobs tax credit — a nonrefundable credit designed to direct private capital to businesses in rural counties — and heard GOEO describe program mechanics, timelines and early results.

Chris Stitt explained the program’s statutory form: corporate and individual versions exist in Title 59; claimants must be certified by GOEO; the credit equals a claimant’s eligible capital contribution to a certified rural investment company; and the credit is nonrefundable (it reduces tax liability to zero but does not generate a refund). Carry-forward periods differ by contribution date: contributions before 2022 carry forward up to seven years, and contributions on or after Nov. 1, 2022, carry forward up to four years, Stitt said.

Jim Grover explained how GOEO administers the Rural Jobs Act. GOEO issues determination letters to certify rural investment companies, reviews annual compliance metrics, and verifies that rural investment companies deploy capital to small businesses (company size limits are part of statute). Grover said the program’s first tranche began in 2017 and ramped activities thereafter; rural investment companies deployed $45.4 million in capital during an initial exit window and reported 151 net new high‑paying jobs on the net measure GOEO tracks.

Grover described the program’s structure: large financial institutions provide capital to certified rural investment companies, which then lend to eligible rural businesses. GOEO uses statutory-size tests (e.g., firms with fewer than 150 employees, less than $10 million in net income, and industries the program targets) to qualify projects and to track job outcomes. GOEO said the program was re‑authorized in 2022 with adjustments and a second version was launched through a request‑for‑proposal process that selected additional rural investment companies in 2023.

Committee members asked about timing, exit events, and how “net new” jobs are counted; Grover said GOEO reports both the net new jobs measure (baseline to exit) and a statutory calculation used for program reporting, and that the two measures can differ. No committee action was taken; GOEO said it will continue annual reporting and described the program as part of the broader rural economic‑development toolkit.