Regional

City of Yuma Economic Development Incentive Fund

The City of Yuma has created a performance based incentive fund designed to encourage new business development, business expansions and relocations. The fund can provide up to $500 per new hire, given to the company in an upfront cash grant award.

City of Yuma Real and Personal Property Tax Abatement

The City of Yuma will support and agree to property tax abatements for companies creating new jobs above the County median wage ($12.12/hr) along with a capital investment to exceed $1 million and per the approval of the City Council. The duration of the abatement
will be predicated upon the overall economic impact of the project.

Workforce Salary and Training Grant

YPIC offers programs that cover the entire costs of employee training, including teaching, materials, equipment and other expenses. Companies can additionally qualify for reimbursement of 50% employee salaries paid during training for up to 6 months.

New Market Tax Credits

Below market interest loans guaranteed by federal government for the purpose of stimulating development in rural communities. Companies utilizing New Market Tax Credits pay on the interest only of the loan for seven years. After the 7th year, the loan is forgiven and the company is awarded the principal and equity of the loan.

Foreign Trade Zone

Along with duty and tariff elimination or reduction, Arizona offers up to an 80% reduction in state real and personal property taxes by operating in a federally qualified Foreign Trade Zone. The reduction is good for the entire time that a company operates in the FTZ.

State of Arizona

Arizona’s $25 Million Deal Closing Fund

Arizona has taken a progressive position by offering attraction funds to companies meeting performance measures that benefit both the company and the citizens of Arizona. Utilization of this resource will generate investment in business projects that stimulate and promote industries providing high-wage and stable jobs. In order to assure a return on investment to the state, performance safeguards are a requirement
of these funds.

Income Tax Credits Up to $9,000 for Each Qualifying New Job

The Quality Jobs Tax Credit replaces Arizona’s expiring Enterprise Zone Program. It provides per-employee tax credits of $3,000 per year for up to three years. Credits may be carried forward for five years. Eligibility qualifications are different from rural and metro areas and focus on capital investment and net new job creation (5 new jobs – rural/25 new jobs metro).

30% Reduction in Arizona’s Corporate Income Tax Rate

Corporate income tax rates in Arizona will be decreasing from 6.97% down to 4.9% from 2014 to 2017. This new 30% lower rate makes Arizona’s rate one of the five lowest in the country.

$1.5 Million in Reimbursable Grants to Train Employees

Arizona provides reimbursable grants to employers that implement job-specific training plans for new jobs or for training plans that increase the skill level of current employees. Award amounts range from $2,000 to $8,000 per position depending upon company size and location.

Qualified Facilities Program

Offers a refundable income tax credits equal to the lesser of 10% of the qualifying capital investment, or $20,000 per net new job at the facility.

100% Electable Sales Factor for Multi-State Corporations

New legislation increases the electable sales factor for multi-state corporations from 80% to 100% between FY2014 and FY2017. This provides businesses with the opportunity to reduce their tax burden.

15% Increase in Personal Property Exemptions

Effective with the 2011 tax year, Arizona’s personal property exemption is increasing from $67,000 up to $79,000 by using the Employment Cost Index (ECI) rather than the Gross Domestic Product Implicit Price Deflator (GDPIPD).

Lower Commercial Property Assessment Ration—just 18%

The Arizona commercial property assessment ratio is being reduced by 10% down to 18% by 2017. This continues a 10-year trend of reducing property taxes in Arizona. 

Accelerated Depreciation Schedules 

Five-year accelerated depreciation schedules have been increased to help companies recover their investments even faster.

Arizona Innovation Accelerator Fund

$18.2 million loan participation program to stimulate financing to small businesses and manufacturers, in collaboration with private finance partners, to foster business expansion and job creation in Arizona.

Exemptions

1)Sales and Use Tax Exemptions: Exemptions are available for equipment and machinery used in manufacturing.

2) Corporate Franchise or Business Inventory Tax: Arizona does not charge a Corporate Franchise or Business Inventory Tax.