Arizona has lowered taxes, streamlined regulations, and established a suite of incentives to support corporate growth and expansion. The Arizona Competitiveness Package, groundbreaking legislation adopted in 2011, makes it easier for existing Arizona companies to prosper and establishes Arizona as one of the most desirable places for expanding companies to do business. Give your company a competitive edge by utilizing Arizona’s incentives.
Arizona Commerce Authority
The Arizona Commerce Authority (ACA) is one of the most successful state economic development organizations in the nation. The ACA’s streamlined mission to grow and strengthen Arizona’s economy has yielded spectacular results since its inception.
The ACA is overseen by a public-private sector board composed of Arizona leaders in business and policy. The board is overseen by Arizona Governor Doug Ducey and co-chaired by Brian Mueller, President and CEO of Grand Canyon University. Joining them on the board is a group of prestigious private-sector business leaders, elected officials and university presidents.
The ACA’s executive management team drives the organization’s day-to-day operations, ensuring it maintains focus on the recruitment of quality companies and jobs to the state of Arizona. This team brings together the best and brightest in economic development, management and communications.
To encourage new capital investment, Arizona provides accelerated depreciation schedules for commercial personal property. Depreciation schedules for most equipment classes provide for depreciation down to 2.5% of original value, thus virtually eliminating the tax liability.
Foreign Trade Zones (FTZ)
A Foreign Trade Zone is a secured area treated as though legally outside of the U.S. Customs territory where merchandise may be brought duty-free for purposes such as storage, re-packing, display, assembly or manufacturing. Imports may be landed and stored quickly without full customs formalities. Companies qualifying for FTZ designation are also eligible for an 80% reduction in real and personal property taxes.
Research & Development
Refundable income tax credits are available for investment in R&D activities conducted in Arizona. The income tax credit starts at 22% of the qualified R&D expenses for amounts in excess of expenditures from the previous year. The tax credit goes up to 34% if increased R&D expenses are made in conjunction with an Arizona public university.
The Quality Jobs Program offers up to $9,000 of Arizona income or premium tax credits spread over three years for each net new quality job. Businesses located in Maricopa must make a minimum capital investment of $1 million and create at least five quality jobs to qualify.
The Arizona Job Training Program is a job-specific reimbursable grant program that supports the design and delivery of customized training plans for employers creating new jobs or increasing skills and wage levels of current employees.
Renewable energy companies engaged in the solar, wind, geothermal and other renewable energy industries may obtain up to a 10% refundable income tax credit and up to a 75% reduction on real and personal property taxes.
Arizona Fast Grant
The Fast Grant enables Arizona-based tech companies to initiate the commercialization process. The grant pays companies up to $7,500 to provide one or more of select consulting services.
Commercial/Industrial Solar Energy
Businesses installing a solar energy device at an Arizona facility may be eligible for an income tax credit of up to $50,000 per year.
Innovation Accelerator Fund
An $18.2 million loan participation program to stimulate financing to small businesses and manufacturers.
Arizona is a right-to-work state and has a very low unionization rate.
Development agreements generally give some type of benefit to the developer, such as a repayment for public infrastructure improvements through sales tax rebates. Arizona municipalities are restricted to providing only tax incentives consisting of reimbursements for public infrastructure and may not exceed or otherwise be disproportionate to the capital development costs or jobs created through the projects. Maricopa has in the past entered into development agreements, and is willing to explore this option with any business bringing a high level of economic benefit to the community.
Government Property Lease Excise Tax (GPLET)
Available to businesses that lease parcels from a municipality rather than own them outright. All real property tax has been waived and replaced with an excise tax that is an established rate per square foot and based upon the type of use. The rate is reduced every 10 years by 20% until it reaches the 51st year, when the tax drops to zero. In some redevelopment districts, the excise tax can be abated for the first eight years after the certificate of occupancy. If a municipality is a property owner, this creates a huge incentive for a company to occupy the facility or allows them the cash flow to perform improvements.
The City has implemented a Fast Track Permitting Process for qualified new, expanding or relocating businesses. Recognizing the need to offer a business-friendly environment which allows businesses to relocate and expand in the community rapidly and efficiently, the City is committed to streamlining and simplifying, where possible, its governmental permitting processes.
Maricopa has established a redevelopment district for the purposes of revitalizing the area and encouraging private investment. Within the boundaries of the Redevelopment District, the Government Property Lease Excise Tax can be abated for the first eight years after the certificate of occupancy with Council approval.
For projects deemed beneficial to the residents of Maricopa, the City may assign a dedicated commercial building inspector to your project during the entire course of the construction process.