Utah High Cost Infrastructure Tax Credit & Other Utah State Incentives

Utah’s High Cost Infrastructure Tax Credit and related state incentives are designed to offset extraordinary infrastructure expenses that would otherwise prevent large-scale investment, expansion, or site selection in the state.

Why Utah Uses High Cost Infrastructure Incentives

Utah competes nationally for capital-intensive projects that require more than standard roads, utilities, or site preparation. When a project demands infrastructure beyond what local governments or utilities can reasonably fund, the High Cost Infrastructure Tax Credit exists to close that gap.The intent is not to subsidize routine development. It is to enable projects that deliver long-term economic value but face disproportionate upfront infrastructure costs.

What Decision-Makers Care About First

For executives, CFOs, and site selectors, Utah infrastructure incentives typically raise five core questions:
  1. Whether extraordinary infrastructure costs are truly eligible
  2. How incentives interact with broader Utah economic development programs
  3. The level of state discretion and negotiation involved
  4. Timing and sequencing relative to construction and capital spend
  5. Risk exposure if assumptions are incorrect or poorly documented
This page addresses those questions directly.

Utah High Cost Infrastructure Tax Credit: Program Overview

The Utah High Cost Infrastructure Tax Credit is intended to support projects where infrastructure requirements materially exceed normal development expectations and create a barrier to investment.The credit is structured to encourage projects that:
  • Drive long-term job creation
  • Expand Utah’s tax base
  • Anchor development in underserved or logistically challenging areas
What Qualifies as “High Cost” InfrastructureWhile definitions vary by project, qualifying infrastructure commonly includes costs such as:
  • Major utility extensions or capacity upgrades
  • Water, wastewater, or power infrastructure built specifically for the project
  • Rail spurs, access roads, or transportation improvements not otherwise planned
  • Site-specific infrastructure required due to geography or remoteness
Routine site work or standard connections typically do not qualify.

Eligible Projects and Industries

Projects most often considered for high-cost infrastructure support include:
  • Advanced manufacturing and industrial facilities
  • Logistics, warehousing, and distribution hubs
  • Energy-related or resource-adjacent operations
  • Large-scale processing, fabrication, or production facilities
Eligibility is driven less by industry labels and more by economic impact, scale, and infrastructure burden.

Investment and Employment Considerations

Utah evaluates infrastructure incentives holistically. Key considerations often include:
  • Total capital investment relative to the infrastructure request
  • Quality, stability, and longevity of projected jobs
  • Wage levels and economic spillover
  • Long-term presence and expansion potential
Infrastructure incentives are rarely evaluated in isolation.

How the Credit Works in Practice

The High Cost Infrastructure Tax Credit is generally:
  • Performance-based rather than automatic
  • Evaluated case by case
  • Subject to approval by state-level economic development authorities
Credits are typically structured to align with verified investment or operational milestones rather than upfront guarantees.

Other Utah Incentives That Commonly Pair With Infrastructure Credits

High-cost infrastructure projects often layer multiple Utah incentives, including:Utah Economic Development Tax Increment Financing (EDTIF)Provides post-performance tax credits tied to job creation and new state revenue.Local Government IncentivesCounties and municipalities may offer property tax abatements, fee reductions, or infrastructure participation.Workforce and Training ProgramsUtah offers workforce development resources that can reduce hiring and training costs for large employers.Strategic coordination across these programs is where meaningful value is often unlocked.

How Companies Generally Qualify

While each project is unique, qualification typically involves:
  • Demonstrating that infrastructure costs exceed normal development thresholds
  • Showing that the project would be delayed, downsized, or relocated without support
  • Providing credible economic impact projections
  • Aligning with Utah’s long-term development priorities
Documentation quality and timing matter as much as eligibility.

Application and Approval Process

  1. Early feasibility and incentive screening
  2. Infrastructure cost identification and validation
  3. Economic impact modeling
  4. State and local stakeholder coordination
  5. Formal application and negotiation
  6. Performance tracking and compliance
Missteps early in this process can permanently limit incentive availability.
Sumit Credits - utah high cost infrastructure tax credit other incentives

Where Businesses Commonly Miss Value

Companies often underestimate:
  • How narrowly infrastructure costs must be defined
  • The importance of pre-commitment timing
  • The interaction between state and local incentives
  • Ongoing compliance and reporting requirements
These gaps can reduce or eliminate otherwise available incentives.

How SumIt Credits Supports Infrastructure-Driven Projects

SumIt Credits acts as a strategic partner throughout the incentive lifecycle by:
  • Identifying qualifying infrastructure costs with defensible documentation
  • Mapping Utah incentive programs that can be layered together
  • Coordinating state and local incentive conversations
  • Reducing internal resource drain and compliance risk
The goal is not just approval, but durable, audit-resilient outcomes.

Strategic Timing Considerations

Infrastructure incentives are often lost due to timing errors. Best results typically require:
  • Engagement before site commitments are finalized
  • Alignment with construction and procurement schedules
  • Early coordination with state and local agencies
Once capital is deployed without incentive structuring, leverage disappears.

Top 10 Questions & Answers

  1. What is the Utah High Cost Infrastructure Tax Credit?It is a discretionary state tax credit intended to offset extraordinary infrastructure costs that enable large economic development projects in Utah.
  2. What types of infrastructure costs are typically considered?Costs may include utilities, transportation access, or site-specific infrastructure required solely because of the project’s location or scale.
  3. Is the credit guaranteed if a project qualifies?No. Approval is discretionary and based on economic impact, feasibility, and alignment with state priorities.
  4. Does the credit apply before or after construction?Credits are generally tied to performance and verification rather than provided upfront.
  5. Can this credit be combined with other Utah incentives?Yes. It is commonly coordinated with EDTIF and local government incentives.
  6. Are certain industries favored?Utah focuses on economic impact rather than industry labels, though capital-intensive projects are more common candidates.
  7. How long does the approval process take?Timelines vary significantly depending on project complexity, documentation quality, and agency coordination.
  8. What are common reasons applications fail?Late engagement, weak cost substantiation, unrealistic projections, or misalignment with state priorities.
  9. Do local governments play a role?Yes. Local participation often strengthens infrastructure incentive proposals.
  10. How can companies reduce risk in the process?By engaging early, validating assumptions, and coordinating incentives strategically rather than program by program.

Next Steps for Infrastructure-Intensive Projects

Companies considering Utah for infrastructure-heavy investments should evaluate incentives before site decisions are finalized. Early analysis determines whether infrastructure costs can be strategically offset or become unrecoverable sunk costs.Sum It Credits supports that analysis with precision, discipline, and regulatory awareness.