Since 1980, the amount of materials recycled in the U.S. has grown from 9% to over 33%. This growth has fueled a market for recycled products.
Businesses involved in this process are seeking to open or expand in the best areas. To encourage this, the Utah Legislature created the Utah Recycling Market Development Zone Program. The Program assists businesses that collect, process, distribute or use recycled materials in their manufacturing operations, or compost.
A Recycle Market Development Zone was established in Salt Lake City in 2008. This is not a “zone” in the traditional sense. It is an area designated by the city where business must be located to take advantage of the incentives provided by the State.
Eligible recycling businesses approved by Salt Lake City’s program qualify for:
5% state tax credit on machinery and equipment
20% state tax credit (up to $2,000) on eligible operating expenses
Salt Lake City’s Program Overview
Qualifications for Salt Lake City’s Program
In order to qualify for Salt Lake City’s program the business must be located:
In an M-1 (Light Manufacturing) or M-2 (Heavy Manufacturing) Zoning District, as these zoning classifications allow recycling activities; and
Either west of Interstate 215 or north of 600 North, which creates a buffer between any residential or commercial zones and the highest concentration of manufacturing or recycling businesses.
View Map (PDF)
Businesses located in the area north of 600 North will only qualify if they use recycled material in a manufacturing process.
Minimum Recycling Activity
Business that use recycled materials must use a minimum of 25% recycled materials in their process.
Businesses that collect materials to be recycled must recycle at least 50% of the material that they collect or accept.
Applications and Reporting
An existing business who has not previously participated in the program must submit an Initial Application (PDF) no later than March 31 to be considered for the current tax year.
For existing businesses, we are now accepting applications for the current tax year.
New businesses must submit an initial application within 90 days of receiving their business license to be considered for the current tax year.
At the end of the tax year each business must also submit an Annual Report (PDF), no later than March 31 of the following year, which documents recycling activity of the business.
Inspections and Approval
Businesses must be in compliance with all local and state regulations. Salt Lake City will coordinate with various permitting agencies and departments to determine whether a business qualifies for the Program. Agencies consulted may include Salt Lake City Building Services and Business Licensing, Fire Department, and the Salt Lake Valley Health Department.
Inspections of businesses will be conducted to determine ongoing compliance with regulations. Inspections may be initiated by complaints or may be conducted randomly.
Businesses may have their RMDP designation revoked or suspended for the tax year if they do not continue to meet all local and state regulatory requirements. The business will be notified in writing if their conditional approval status changes at any time during the year.
Salt Lake City will provide documentation of approval or denial to the State for businesses that have applied for the tax credits, as requested by the State.