Development zones promoted

A legislative committee will consider whether a measure to expand aviation and aerospace development zones will fly.

Several speakers told the Workforce Services and Community and Economic Development Interim Committee on Wednesday that perhaps the zones, which have boosted economic development potential for aviation and aerospace at a couple of airports, should be expanded to other airports, other geographic regions or even other industries.

The zones allow expanding aviation and aerospace companies to get state tax-rebate incentives, but legislation currently limits the zones to sites near Salt Lake City International Airport and Ogden Hinckley Airport.

But other areas — including Logan, Spanish Fork and Carbon County — want in on the action.

"There's a lot of rural interest in this type of legislation," said Sen. Mike Dmitrich, D-Price.

David Harmer, executive director of the state Department of Community and Economic Development, wants the Legislature to delete technical requirements for qualifying airports sooner than called for in the original 2003 legislation and also to allow the rebate program to move beyond airport locations or particular industries.

"It would be a powerful economic development tool for us," Harmer told the committee.

The current setup allows companies to get tax rebates of up to 30 percent of the incremental tax revenue their growth generates during the life of their agreement with the state, up to 20 years. The figure can be as high as 50 percent for any single year.

Harmer said the tax-rebate structure ensures the state can't lose.

"I think it's an excellent tool, and I would encourage opening it up . . . to broader use throughout Utah and for other industries," he said.

Harmer, who said Utah's conservative nature led to HB316 being restricted to aviation and aerospace, added that the state is missing out on bidding for biotech and other projects because of the legislation's limitations.

After HB316 was passed, the state tried unsuccessfully to land a pair of projects for the Ogden airport, including a long-shot bid to get Boeing to manufacture its new 7E7 line of aircraft there.

But two commitments have been made and, should the state get both, they would lead to at least 700 new jobs and generate $156 million in new state revenues over the lifetimes of the agreements with the companies, he said.