Arizona Competes! In early 2011, Governor Jan Brewer signed into law HB2001 – The Arizona Competitiveness Package.This legislation marks a new level of Arizona commitment; making it easier for existing Arizonacompanies to be more prosperous and it establishes Arizona as one of the most desirable places forexpanding companies to do business. Arizona is helping you to compete. We invite you to dialoguewith our team to discover how these incentives, and others, can be put to work for you!Earn… Income tax credits up to $9,000 for each qualifying new jobThe Quality Jobs Tax Credit program provides tax credits of up to $3k per year for three years for each new job.Unused credits may be carried forward for five years. Eligibility qualifications are different for rural and metroareas and focus on capital investment and net new job creation (rural – cap. investment of $1M and 5 new jobs/ Urban – cap. investment of $5M and 25 new jobs).Receive… Up to $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 fortraining plans that increase the skill level of current employees. Award amounts range from $2,000 to $8,000 perposition depending upon company size and location.Tap Into … Our $25 million Arizona Competes FundArizona has taken a progressive position by offering attraction funds to companies seeking growth in Arizona.Utilization of the Arizona Competes Fund will generate investment in business projects that stimulate andpromote 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.Leverage… A 34% research and development tax creditThe Arizona Competitiveness Package provides increased tax credits on qualified R&D expenditures ranging from24% to 34%. R&D investments made in cooperation with an Arizona university may receive maximum tax credits.Tax credits are based upon R&D increases over prior years. Fully utilized, this improved tax credit will stimulate$100 million of research conducted in partnership with our public universities. Arizona will be among the topstates encouraging such public / private research collaboration.Take advantage… Of Arizona’s 100% electable sales factor for multi‐state corporationsOur new legislation increases the electable sales factor for multi‐state corporations from 80% to 100% betweenFY2014 and FY2017. This provides businesses with the opportunity to reduce their tax burden.Obtain… Tax reductions by investing in renewable energyCompanies engaged in the solar, wind, geothermal and other renewable energy industries may obtain up to a10% refundable income tax credit and up to a 75% reduction on real and personal property taxes. www.azcommerce.com
Capitalize… On Arizona’s lower commercial property assessment ratio – just 18% Reduced by 10%, the Arizona commercial property assessment ratio will be 18% by 2017. This continues a 10‐year trend of reducing property taxes in Arizona.Utilize… Arizona’s improved accelerated depreciation schedulesFive‐year accelerated depreciation schedules have been increased to help companies recover their investmentseven faster.Benefit… From a 30% reduction in Arizona’s corporate income tax rateCorporate income tax rates in Arizona will be decreasing from 6.97% down to 4.9% from 2014 to 2017. This new30% lower rate makes Arizona’s rate one of the five lowest in the country.Get Rewarded… With tax credits and tax improvements by growing a small business Arizona’s Angel Tax Credits are now available to investors who want to invest in larger companies. Additionalimprovements to the program include elimination of capital gains tax on income derived from investments incompanies certified by the ACA (beginning 2014).Hold Costs Down… By operating in Foreign Trade Zones or Military Re‐Use ZonesFTZ ‐ Arizona offers up to an 80% reduction in state real and personal property taxes by operating in a Federallyqualified Foreign Trade Zone. The reduction is good for the entire time that a company operates in the FTZ.Military Re‐Use Zone – Aerospace companies operating in a qualified MRZ can receive up to $7,500 income taxcredits over five years for non‐dislocated employees and $10,000 for dislocated employees. Five year carryforward provision for unused tax credits. Also receive a five‐year reclassification of real and personal property.Receive exemption of transaction privilege tax on approved construction.Improve… Your bottom line by a 15% increase in personal property exemptionsEffective with the 2011 tax year, Arizona’s personal property exemption is increasing from $67,000 up to $79,000by using the Employment Cost Index (ECI) rather than the Gross Domestic Product Implicit Price Deflator(GDPIPD). Allison Gilbreath Vice President Business Attraction 1700 West Washington Street Executive Tower, Suite 600 Phoenix, AZ 85007 T 602‐771‐1123 Incentives, programs and tax benefits are available subject to C 602‐370‐6542 qualification according to the enabling legislation, or F 602‐771‐1200 administrative guidelines, as may be applicable. Inclusion is AllisonG@AZcommerce.com for information purposes and does not constitute an offer. Please contact us to explore how these AND other incentives can help you to be more competitive by operating and growing your business in Arizona!