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Utah House passes HB 11 to create job-tied economic development incentives

Utah House of Representatives · February 7, 2005
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Summary

House Bill 11, creating state economic development incentives tied to new job creation in locally designated development zones, passed the House 63–4. Sponsors said benefits would be audited and rebates paid after verified job creation.

The Utah House passed House Bill 11, an economic-development package that authorizes state tax incentives tied to new job creation in partnership development zones.

Sponsor Representative D said the incentive is paid only after jobs have been produced and audited: "If they commit to produce x amount of jobs in the state of Utah, then we as the state of Utah will monitor that for the first year... and then DBED can go back with the company and rebate a partial portion of the taxes generated by those jobs." He emphasized the incentives are intended for higher‑paying, new incremental jobs, with local governments committing matching incentives and zoning approvals.

Representative Hughes and other members questioned local zoning and oversight; the sponsor said zones must be commercial, industrial or research‑park uses approved in the community master plan. Representative Allen urged caution and noted a federal appellate question elsewhere about similar incentives. After debate the House opened voting and the bill passed the House 63 yes, 4 no and will be referred to the Senate for consideration.

Next steps: HB 11 will proceed to the Senate; implementation will require local government partnership, department monitoring and reporting as set out in the bill.