Quality Jobs Tax Credit
The Quality Jobs tax credit offers up to $9,000 of Arizona income or premium tax credits spread over a three-year period for each net new quality job ($3,000 per year). The program encourages continuous employment; therefore, the tax credit is equal to:
THE ARIZONA JOB TRAINING PROGRAM (THE "PROGRAM") ESTABLISHED PURSUANT TO A.R.S. §41-1544 IS A JOB-SPECIFIC REIMBURSABLE GRANT PROGRAM THAT SUPPORTS THE DESIGN AND DELIVERY OF CUSTOMIZED TRAINING PLANS FOR EMPLOYERS CREATING NET NEW JOBS. UNDER A "NET NEW" GRANT AN EMPLOYER CREATING NET NEW JOBS CAN APPLY FOR A GRANT TO RECEIVE UP TO 75% OF THEIR ELIGIBLE TRAINING EXPENSES REIMBURSED.
The Arizona Commerce Authority (ACA) may authorize up to $70 million per calendar year in tax credits to qualified companies beginning January 2013 through December 2022. The tax credits will be authorized on a first-come, first-served basis, according to a priority placement number assigned by the ACA at the time of Pre-Approval.
Government Property Lease Excise Tax (GPLET)
GPLET is a redevelopment tool used to initiate development by reducing a project's operating costs by replacing the real property tax with an excise tax.
The Opportunity Zones program is a federal program designed to spur community investment by providing tax benefits to investors. The City of Kingman has two census tracts that have been designated Opportunity Zones by the U.S. Department of the Treasury.
Research & Development
The Research and Development (R&D) incentive provides an Arizona income tax credit for increased research and development activities conducted in this state, including research conducted at a state university and funded by the company.
The principal objective of the Angel Investment program is to expand early stage investments in targeted Arizona small businesses. The program accomplishes this goal by eliminating Arizona capital gains tax liabilities associated with the disposition of investments in small businesses certified by the ACA.
Small Business Innovation Research Grant (SBIR)
SBIR is a competitive grant that encourages small businesses to explore their technological potential and provides incentive to profit from commercialization.
Sale Tax Exemption
- Machinery or equipment used directly in manufacturing, see A.R.S. § 42-5159(B)(1).
- Machinery, equipment or transmission lines used directly in producing or transmitting electrical power, but not including distribution, see A.R.S. § 42-5159(B)(4).
- Machinery or equipment used in research and development, see A.R.S. § 42-5159(B)(14).
- The electricity or natural gas for businesses that are principally engaged in manufacturing or smelting operations. See A.R.S. §§ 42-5063(C)(6) and 42-5159(G).
- Questions can be directed to the Program Manager at 602-845-1256.
The Arizona Competitiveness Package (HB 2001, 2011) encouraged new capital investment in Arizona by enhancing Arizona’s additional depreciation allowance for property tax. Additional depreciation substantially reduces tax liability for most personal property devoted to commercial, industrial and agricultural uses by reducing the taxable value of such property during its first five years of use (by increasing the depreciation factored in determining such value). For eligible property initially classified in tax year 2012 or thereafter, additional depreciation reduces the personal property’s full cash value for tax purposes by 75% in the first year of use, 59% in the second year of use, 43% in the third year of use, 27% in the fourth year of use and 11% in the fifth year of use. (The Arizona Competitiveness Package increased each of the foregoing percentages by five points.)