§ 63M-1-3403. Agreement for development of new convention hotel -- Tax credit authorized -- Agreement requirements. (Effective 5/13/2014)

(1) The office, with the board's advice, may enter into an agreement with a qualified hotel owner or a host local government:

(a) for the development of a qualified hotel; and

(b) to authorize a tax credit:

(i) to the qualified hotel owner or host local government, but not both;

(ii) for a period not to exceed the eligibility period;

(iii) if:

(A) the county in which the qualified hotel is proposed to be located has issued an endorsement letter endorsing the qualified hotel owner; and

(B) all applicable requirements of this part and the agreement are met; and

(iv) that is reduced by $1,900,000 per year during the first two years of the eligibility period, as described in Subsection (2)(c).

(2) An agreement shall:

(a) specify the requirements for a tax credit recipient to qualify for a tax credit;

(b) require compliance with the terms of the endorsement letter issued by the county in which the qualified hotel is proposed to be located;

(c) require the amount of a tax credit listed in a tax credit certificate issued during the first two years of the eligibility period to be reduced by $1,900,000 per year;

(d) with respect to the state portion of any tax credit that the tax credit recipient may receive during the eligibility period:

(i) specify the maximum dollar amount that the tax credit recipient may receive, subject to a maximum of:

(A) for any taxable year, the amount of the state portion of new tax revenue in that taxable year; and

(B) $75,000,000 in the aggregate for any tax credit recipient during an eligibility period, calculated as though the two $1,900,000 reductions of the tax credit amount under Subsection (1)(b)(iv) had not occurred; and

(ii) specify the maximum percentage of the state portion of new tax revenue that may be used in calculating a tax credit that a tax credit recipient may receive during the eligibility period for each taxable year and in the aggregate;

(e) establish a shorter period of time than the period described in Subsection 63M-1-3402(5)(a) during which the tax credit recipient may claim a tax credit or that the host agency may be paid incremental property tax revenue, if the office and qualified hotel owner or host local government agree to a shorter period of time;

(f) require the tax credit recipient to retain books and records supporting a claim for a tax credit as required by Section 59-1-1406;

(g) allow the transfer of the agreement to a third party if the third party assumes all liabilities and responsibilities in the agreement;

(h) limit the expenditure of funds received under a tax credit as provided in Section 63M-1-3412; and

(i) require the tax credit recipient to submit to any audit the office considers appropriate for verification of any tax credit or claimed tax credit.

Enacted by Chapter 429, 2014 General Session