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House votes to concur with Senate changes to enterprise-zone tax incentives aimed at jobs

Utah House of Representatives · February 18, 2005
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Summary

The Utah House on Feb. 17 concurred with Senate amendments to House Bill 11 to preserve an incentive for businesses that create local jobs; critics warned the grant remains discretionary and could allow the state to 'cherry pick' recipients.

The Utah House voted Wednesday to concur with Senate amendments to House Bill 11, a measure to extend a tax incentive for businesses that create jobs in designated enterprise zones.

Representative D, who moved the concurrence, said the bill is "specifically designed for jobs" and requires that the promised number of jobs be in place before incentives are granted. Opponents said the Senate wording leaves the ultimate decision discretionary. "It's only a May, which means that they can cherry pick who will be the recipient of those tax breaks," Representative Hughes said, arguing that DBEDT (the Department of Business and Economic Development) could selectively award incentives.

Representative Christiansen warned the House against creating an unequal system of favors without accountability, saying the bill could produce "an endless parade of Mirage promises" if safeguards are not clear. Supporters, including Representative Harper, said Utah needs tools in its economic-development "toolbox" to compete for large investments and jobs.

Following a division and electronic voting, the House recorded a concurrence vote (motion to concur) that passed and then voted to pass the final bill. The clerk announced final passage at 54 yes and 14 no; the measure is to be returned to the Senate for signature of the president.

The debate focused on whether the statutory language gives DBEDT sufficient discretion and whether additional accountability language or required criteria should accompany awards. Sponsors said the bill requires proof that the jobs exist before incentives are given; critics said the "may" language still allows selective awarding.

The next step is transmittal back to the Senate for the president's signature.