State Fact Sheet

Tax Incentive Evaluation Law: Utah

To ensure that economic development tax incentives are achieving their goals effectively, many states have approved laws requiring regular, rigorous, independent evaluations of these programs. For a list of states that have passed evaluation laws since the start of 2012, click here.

Utah

H.B. 3001, enacted July 17, 2016

What it does

Requires evaluation of all major tax incentives

The Legislature’s Revenue and Taxation Interim Committee reviews existing tax credits on a three-year cycle and studies any newly created credits within three years of their effective dates.

The committee’s reviews are informed by data and analysis from the nonpartisan staff of the Office of the Legislative Fiscal Analyst and from executive branch agencies.

Connects reviews to policymaking

The committee holds hearings to conduct the reviews, inviting interested individuals and organizations to provide testimony.

The committee must make recommendations to the full Legislature to continue, modify, or repeal each credit.

Excerpt from Utah’s law: The committee’s review process

In conducting the review required under Subsection (2)(a), the [Revenue and Taxation Interim Committee] shall:

(i) schedule time on at least one committee agenda to conduct the review;

(ii) invite state agencies, individuals, and organizations concerned with the tax credit under review to provide testimony;

(iii) (A) invite the Governor's Office of Economic Development to present a summary and analysis of the information for each tax credit regarding which the  Governor's Office of Economic Development is required to make a report under this chapter; and

(B) invite the Office of the Legislative Fiscal Analyst to present a summary and analysis of the information for each tax credit regarding which the Office of  the Legislative Fiscal Analyst is required to make a report under this chapter.