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House approves bill letting state blend incentive funds to recruit businesses; sponsor cites 3,449 jobs
Summary
HB131 permits the economic development office to blend two incentive funds (economic-development tax-increment fund and the Industrial Assistance Fund). Sponsors said the tool helped attract 3,449 jobs and roughly $62.65 million in net state revenue; the House approved the bill 58–8.
The House on Feb. 9 passed House Bill 131 to give the governor's Office of Economic Development greater flexibility in structuring post-performance incentives for businesses.
The bill allows the office to "blend a couple of funds," enabling both the economic-development tax-increment fund and the Industrial Assistance Fund to be used together when negotiating incentives. The sponsor reported that since the earlier program's inception the state has seen 3,449 new jobs and "a tax investment in state net revenue of $62,646,000," figures cited as evidence of the program's success.
During floor discussion Representative Romero and others pressed for more specificity on the fiscal note and raised concerns that the change could increase diversions from the general fund or create overlapping incentives for recipients. The sponsor and other proponents said the change would not increase the total incentive available to a firm but would provide another tool for structuring assistance and that board policy and negotiations limit the total incentive so "double-dipping" should not occur.
Representative Deed and other sponsors argued the incentives have benefited portions of rural Utah as well as the Wasatch Front and cited specific county job and revenue examples. The bill passed the House 58–8 and was referred to the Senate.
