Arizona

Quick Facts

Arizona Governor Jan Brewer

Arizona Governor Jan Brewer

 

  • Capital: Phoenix
  • Population (2012 Est.): 6,553,255
  • Largest Cities (2012): Phoenix, 1,488,750; Tucson, 524,295; Mesa, 452,084; Chandler, 245,628
  • Targeted Industries: Renewable Energy, Aerospace & Defense, IT, Semiconductor/Advanced Manufacturing, Optics, Advanced Business Services
  • GDP (All Industry 2012): $266.8 billion*

*Bureau of Economic Analysis, U.S. Department of Commerce

arizona

Incentives

In addition to our aggressive incentive programs, Arizona is committed to attracting and supporting quality companies through competitive tax policies and has demonstrated a continued trend of reducing property, individual sales and corporate income tax rates:

  • Among the lowest corporate income tax rates in the country. 30% reduction in Arizona’s corporate income tax rate, which decreases from 6.97% in 2014 to 4.9% by 2017.
  • Sales factor further reduces corporate tax burdens. 100% electable sales factor for multi-state corporations (increasing from 80% to 100% between 2014 and 2017).
  • Improved accelerated depreciation schedules. Five-year accelerated depreciation schedules reduce corporate tax burdens. This allows many companies to recover investments more quickly, significantly reducing personal property’s full cash value, and taxes owed, over five years.
  • 97% increase in personal property tax exemption.

FINANCING

Arizona Innovation Accelerator Fund: $18.2 million loan participation program fostering business expansion and job creation in Arizona by providing debt financing for small businesses (in collaboration with private finance partners).

Arizona Innovation Challenge: $3 million awarded annually ($1.5 million twice yearly) to the most promising technology ventures ($100,000 – $250,000 per company) to help promote and fund Arizona innovation.

AZ Fast Grant: Up to $7,500 grant to pay for consulting services to advance Arizona-based technology companies.

AZ State Trade and Export Promotion Program (STEP): Export assistance grant for small businesses as they export their products for the first time or expand to additional export markets.

TAX INCENTIVES

Quality Jobs Tax Credit: $9,000 income tax credit for each qualifying new job. It is a credit equal to $3,000 per year for three years for each new qualifying job

  • Metro: Capital investment of at least $5 million and at least 25 new jobs
  • Rural: Capital investment of at least $1 million and at least 5 new jobs

Research and Development Tax Credit: Income tax credit for investing in R&D in Arizona.The 2011 through 2017 R&D tax credit will be equal to 24% of the first $2.5 million in qualifying expenses plus 15% of the qualifying expenses in excess of $2.5 million. For 2018 and thereafter, the tax credit rates will be 20% of the first $2.5 million in qualifying expenses plus 11% of the qualifying expenses in excess of $2.5 million. It is equal to 34% of qualifying expenses when made in conjunction with an Arizona public university Companies with fewer than 150 employees may take 75% of the credit as a cash refund

Qualified Facility Tax Credits Program: Refundable income tax credit for a manufacturing facility or a manufacturing-related research or headquarter facility. Credit is equal to 10% of the capital investment in a new facility or $20,000 per qualified new job created, whichever is less. 51% of new jobs must pay wages of at least 125% of the state median.

Sales Tax Exemptions for Machinery and Equipment: Available for:

  • Machinery/Equipment used directly in manufacturing
  • Equipment or transmission lines used directly in producing or transmitting electrical power, but not including distribution
  • Machinery or equipment used in research and development

Computer Data Center (CDC) Tax Exemptions: Program to provide tax relief to CDC owners, operators and co-location tenants. It is available on purchases of CDC equipment for up to 20 years for qualifying CDCs that are certified by the Arizona Commerce Authority. Investment requirements at a new or expanding CDC:

  • $50 million in new investment if the CDC is located in Maricopa or Pima county; or
  • $25 million in new investment if the CDC is located in any other county

Angel Tax Credit: An income tax credit of up to 35% is available for investments of at least $25,000 in an Arizona Commerce Authority-certified small business. Beginning 2014, any capital gains income derived from a qualified investment under the Angel program will be exempt from taxation in Arizona.

Renewable Energy Tax Incentive Program: Refundable income tax credits and property tax reductions for companies engaged in the solar, wind, geothermal and other renewable energy (RE) industries when the facility is for RE manufacturing or RE headquarters operations:

  • Tax credit of up to 10% of qualifying expenses
  • Up to 75% reduction in real and personal property taxes for up to 15 years
  • New jobs must pay wages of at least 125% of the county median

Renewable Energy Production Tax Credit: Income tax credit awarded to utility-scale generation systems based on the amount of electricity produced annually for a 10-year period using solar light, solar heat, wind or certain types of biomass. The income tax credits established are intended to promote investment in renewable energy production using low-emission and zero-emission electricity generation technologies. The credits are only for qualified energy generators with at least 5 megawatts generating capacity.

  • For wind or biomass derived qualified energy resource the amount of the income tax credit is:
    • 1¢ per kilowatt-hour (kWh) of the first 200,000 megawatt-hours of electricity produced. (200,000 megawatt-hours of electricity equals 200 million kWh which, when multiplied by 1¢ per kWh, equals $2 million in credit.)
      The tax credit cannot exceed $2 million dollars per year per facility that produces electricity.
  • For solar light derived or solar heat derived qualified energy resource the income tax credit is:
    • 4¢ per kWh in the 1st and 2nd calendar years in which the qualified energy generator produces electricity, 3.5¢ per kWh in the 3rd and 4th years, 3¢ per kWh in the 5th and 6th years, 2¢ per kWh in the 7th and 8th years, 1.5¢ per kWh in the 9th year, and 1¢ per kWh in the 10th calendar year in which the qualified energy generator produces electricity. The tax credit cannot exceed $2 million dollars per year per facility that produces electricity.

Commercial and Industrial Solar Tax Credit Program: Income tax credit for companies installing a solar energy device at an Arizona facility. The tax credit is equal to 10% of the installed cost of the solar energy device not to exceed $25,000 in credits for one building in a single tax year and $50,000 total credits per business per tax year. Tax credits can be used to offset Arizona income tax liability; any unused credit amounts can be carried forward for a five-year period.

Military Reuse Zone (MRZ): A Program established to lessen the impact of military base closures. Currently there are two MRZs in Arizona. In 2001 the MRZ designation was renewed for the former Williams Air Force Base, now known as Williams Gateway Airport. In December 2002, the former U.S. Naval Air Facility in Goodyear, now known as Phoenix/Goodyear Airport, was designated as an MRZ. An applicant for the MRZ program must be located within an MRZ to qualify for the benefits. The program offers three types of benefits:

  • Transaction Privilege Tax Exemption – Exemption from transaction privilege tax on contracts for certain types of construction at an MRZ
  • Tax Credits – Arizona income/premium tax credits for up to five years for each net new job created, totaling up to $7,500 per non-dislocated employee and up to $10,000 per dislocated employee
  • Property Reclassification – Both real and personal property can be reclassified from class one (20% assessment ratio) to class six (5% assessment ratio), which may result in property tax savings of up to 75% for a period of five years

Foreign Trade Zone (FTZ): Up to a 75% reduction in state real and personal property taxes for businesses located in an FTZ. Other benefits include: duty free zone, no time constraints on storage, shorter transit time (direct delivery), and weekly entries.

Private Activity Bond: Issued to finance construction and equipment purchases associated with industrial and manufacturing facilities, residential rental projects, facilities for the furnishing of water, sewage and solid waste facilities and more. Interest on private activity bonds may be exempt from federal income tax for most bondholders.

WORKFORCE DEVELOPMENT 

Robust Workforce Development Assistance: No-cost workforce assistance:

  • Immediate access to job-ready talent pools
  • Skill assessments and talent screening
  • Human Resource consulting on Arizona’s labor laws
  • Custom recruiting services
  • Transition and retention services
  • Training grants for new hires and incumbent employees

Job Training Grants: Grants to employers implementing job-specific training plan. The maximum grant is $1.5 million, not to exceed $5,000 per employee trained in metro areas and $8,000 per employee trained in rural areas

  • New employees: reimbursement of up to 75% of approved training expenses
  • Current employees: reimbursement of up to 50% of approved training expenses

Ak-Chin Indian Community

Phil Entz
Property Manager
42507 W. Peters & Nall Road
Maricopa, AZ 85138
520-568-3246
fax: 602-678-0598
[email protected]
leaseakchin.com

Thrive in the native environment of the Ak-Chin Indian Community. Our fully improved industrial park, Santa Cruz Commerce Center, offers below market lease rates, substantial tax savings and low utility rates.

az.ak-chin

State Listings

  • Arizona Department of Commerce

    Kevin Sullivan
    Senior Vice President, Business Attraction
    333 North Central Avenue, Suite 1900
    Phoenix, AZ 85004
    P: 602-845-1261
    [email protected]
    www.azcommerce.com

 

Utility Listings

  • Arizona Public Service Co.

    David Bentler
    Manager, Economic Development
    P.O. Box 53999
    Phoenix, AZ 85072-3999
    P: 602-250-3613; 800-423-0198
    [email protected]
    www.arizonaecodevo.com
  • Salt River Project

    Ed Grant
    Senior Project Manager, Economic Development
    1521 North Project Drive
    Tempe, AZ 85281-1298
    P: 602-236-2396
    [email protected]
    www.powertogrowphx.com
  • Tucson Electric Power Company

    Paul J. Bonavia
    Chairman & CEO
    P.O. Box 711
    Tucson, AZ 85702-0711
    P: 520-571-4000
    [email protected]
    www.tep.com

 

Regional Listings

  • Ak-Chin Indian Community

    Phil Entz
    Property Manager
    42507 W. Peters & Nall Road
    Maricopa, AZ 85138
    P: 520-568-3246
    [email protected]
    www.leaseakchin.com
  • Bullhead Regional Economic Development Authority

    Lisa McCabe
    President
    P.O. Box 22031
    Bullhead City, AZ 86439
    P: 928-704-6374
    [email protected]
    www.bullheadazeda.com
  • Central Arizona Regional Economic Development Foundation (CAREDF)

    James Dinkle
    Executive Director
    540 North Camino Mercado, Suite 2
    Casa Grande, AZ 85122
    P: 520-836-6868
    [email protected]
    www.caredf.org
  • Greater Phoenix Economic Council

    Brad Smidt
    Senior Vice President, Business Development
    2 North Central Avenue, Suite 2500
    Phoenix, AZ 85004
    P: 602-689-7451
    [email protected]
    www.gpec.org
  • Real AZ Corridor

    Gus Lundberg
    Coordinator
    P.O. Box 158
    Taylor, AZ 85939
    P: 928-243-8840
    [email protected]
    www.realazcorridor.com
  • Southeast Arizona Economic Development Group (SAEDG)

    George Scott
    Executive Director
    168 East 4th Street
    Benson, AZ 85602
    P: 520-265-6058
    [email protected]
    www.saedg.org
  • Tucson Regional Economic Opportunities, Inc.

    Joe Snell
    President & CEO
    120 North Stone Avenue, Suite 200
    Tucson, AZ 85701
    P: 520-243-1970
    [email protected]
    www.treoaz.org
  • University of Arizona Science & Technology Park

    John D. Grabo, CEcD
    Director of Business Development
    9070 South Rita Road, Suite 1750
    Tucson, AZ 85747
    P: 520-382-2487
    [email protected]
    www.uatechpark.org

 

County Listings

  • Economic Development of Apache County Corporation (EDAC)

    Hank Rogers
    Director
    309 South Mountain Avenue
    Springerville, AZ 85938
    P: 928-333-5569, ext. 7831
    [email protected]
    www.southernapachecounty.com
  • Industrial Development Authority of Maricopa County

    Shelby Scharbach
    Executive Director
    301 West Jefferson, Room 960
    Phoenix, AZ 85003
    P: 602-506-1367
    [email protected]
    www.mcida.com
  • Industrial Development Authority of the County of Pima

    Michael A. Slania, Esq.
    Russo, Russo & Slania, P.C.
    6700 North Oracle Road, Suite 100
    Tucson, AZ 85704
    P: 520-529-1515
    [email protected]
    www.pimaida.com
  • La Paz County Department of Community Development

    Nora Yackley
    Community Development Administrator, Planning and Zoning
    1112 Joshua Avenue, Suite 202
    Parker, AZ 85344
    P: 928-669-6138
    [email protected]
    www.co.la-paz.az.us
  • Mohave County Economic Development

    Bennett Bratley
    Acting Director & Economic Development Specialist
    3250 East Kino Avenue, 2nd Floor
    Kingman, AZ 86409
    P: 928-757-0960
    [email protected]
    www.mohavedevelopment.org
  • Nogales Community Development Corporation

    Yvonne Delgadillo
    Executive Director
    124B North Terrace Avenue, P.O. Box 421
    Nogales, AZ 85621
    P: 520-397-9219
    [email protected]
    www.nogalescdc.org
  • Pinal County Economic Development

    Tim Kanavel
    Economic Development Manager
    31 North Pinal Street, P.O. Box 827
    Florence, AZ 85132
    P: 520-866-6664
    [email protected]
    www.pinalcountyaz.gov
  • Santa Cruz County Workforce Development

    Mauricio A. Chavez
    Director
    2150 North Congress Drive
    Nogales, AZ 85621
    P: 520-375-7670
    [email protected]
    www.co.santa-cruz.az.us

 

City Listings

  • City of Chandler, Economic Development Division

    Christine Mackay
    Economic Development Director
    175 South Arizona Avenue, MS 416
    Chandler, AZ 85225
    P: 480-782-3035
    [email protected]
    www.chandleraz.gov
  • City of Douglas

    Carlos A. De La Torre, P.E.
    City Manager
    425 10th Street
    Douglas, AZ 85607
    P: 520-417-7302
    [email protected]
    www.douglasaz.gov
  • City of Flagstaff

    John Saltonstall
    Business Retention & Expansion Manager
    211 West Aspen Avenue
    Flagstaff, AZ 86001
    P: 928-213-2966
    [email protected]
    www.chooseflagstaff.com
  • City of Glendale

    Brian Friedman
    Director, Economic Development
    5850 West Glendale Avenue, Suite 217
    Glendale, AZ 85301
    P: 623-930-2984
    [email protected]
    www.glendaleaz.com
  • City of Goodyear

    Sheri Wakefield Saenz
    Development Services Director
    195 N. 145th Avenue
    Goodyear, AZ 85338
    P: 623-882-7953
    [email protected]
    www.goodyearaz.gov
  • City of Maricopa

    Micah Miranda
    Economic Development Director
    PO Box 610
    Maricopa, AZ 85139
    P: 520-316-6990
    [email protected]
    www.MaricopaMatters.com
  • City of Mesa Office of Economic Development

    William Jabjiniak
    Economic Development Director
    20 East Main St., Suite 200, P.O. Box 1466
    Mesa, AZ 85201
    P: 480-644-3561
    [email protected]
    www.mesaaz.gov
  • City of Peoria Economic Development Services

    Scott Whyte
    Director
    9875 North 85th Avenue
    Peoria, AZ 85345
    P: 623-773-7738
    [email protected]
    www.peoriaed.com
  • City of Phoenix Community & Economic Development

    John Chan
    Director
    200 West Washington Street, 20th Floor
    Phoenix, AZ 85003
    P: 602-262-5040
    [email protected]
    www.phoenix.gov
  • City of Prescott

    Jeff Burt
    Director, Economic Development Initiatives
    201 South Cortez Street
    Prescott, AZ 86303
    P: 928-777-1227
    [email protected]
    www.cityofprescott.net
  • City of Scottsdale Economic Development

    Robert (Bob) Tunis
    Economic Development Manager, Business Retention & Expansion
    4021 North 75th Street, Suite 102
    Scottsdale, AZ 85251
    P: 480-312-7057
    [email protected]
    www.choosescottsdale.com
  • City of Show Low

    Steve North
    Business Development Coordinator
    180 North 9th Street
    Show Low, AZ 85901
    P: 928-532-4124
    [email protected]
    www.ci.show-low.az.us
  • City of Surprise Economic Development

    Jeff Mihelich
    Community & Economic Development Director
    16000 North Civic Center Plaza
    Surprise, AZ 85374
    P: 623-222-3133
    [email protected]
    www.surpriseaz.com
  • City of Tempe Economic Development Department

    Shannon Selby
    Business Development Officer
    31 E. Fifth Street, 3rd Floor
    Tempe, AZ 85281
    P: 480-350-8812
    [email protected]
    www.tempe.gov/businessattraction
  • Downtown Phoenix Partnership

    Dan Klocke
    Vice President – Development
    101 North 1st Avenue, Suite 1450
    Phoenix, AZ 85003
    P: 602-254-8696
    [email protected]
    www.downtownphoenix.com
  • Gilbert Office of Economic Development

    Dan Henderson, CEcD
    Director of Economic Development
    90 East Civic Center Drive
    Gilbert, AZ 85296
    P: 480-503-6891
    [email protected]
    www.gilbertaz.gov/econdev/
  • Globe-Miami Regional Chamber of Commerce

    Ellen Kretsch
    Executive Director
    1360 North Broad Street
    Globe, AZ 85501
    P: 800-804-5623
    [email protected]
    www.globemiamichamber.com
  • Greater Yuma Economic Development Corporation

    Julie Engel
    President & CEO
    899 East Plaza Circle, Suite 2
    Yuma, AZ 85365
    P: 928-782-7774
    [email protected]
    www.greateryuma.org
  • Lake Havasu City Partnership for Economic Development

    Gary L. Kellogg
    President & CEO
    314 London Bridge Road
    Lake Havasu City, AZ 86403
    P: 928-505-7333
    [email protected]
    www.lakehavasu.org
  • Oro Valley Economic Development

    Amanda Jacobs
    Economic Development Manager
    11000 North La Cañada Drive
    Oro Valley, AZ 85737
    P: 520-229-4735
    [email protected]
    www.orovalleyaz.gov
  • Prescott Valley Economic Development Foundation

    Gary Marks, CEcD
    Executive Director
    7120 East Pav Way, Suite 106
    Prescott Valley, AZ 86314
    P: 928-775-0032
    [email protected]
    www.pvedf.com
  • Sierra Vista Economic Development Foundation

    Mignonne Hollis
    Executive Director
    750 East Bartow Drive, Suite 16
    Sierra Vista, AZ 85635
    P: 520-458-6948
    [email protected]
    www.svedf.org
  • Town of Sahuarita

    Kelly Udall
    Town Manager
    375 West Sahuarita Center Way
    Sahuarita, AZ 85629
    P: 520-822-8818
    [email protected]
    www.sahuaritaaz.gov
  • Wickenburg Chamber of Commerce

    Julie Brooks
    Executive Director
    216 North Frontier Street
    Wickenburg, AZ 85390
    P: 928-684-5479
    [email protected]
    www.wickenburgchamber.com; www.outwickenburgway.com