Arizona offers many incentives and programs to encourage business investment in the state. The items below contain some of the most popular; for a complete list of programs that include sales tax exemptions, depreciation programs and more, visit the Arizona Commerce Authority website.
Rural Jobs and Infrastructure
USDA is announcing $1.1 billion across 104 loan and grant awards to upgrade infrastructure in rural communities that will bring new jobs, clean water and fuel, and reliable electricity to people in nearly every state.
Rural Development Business Programs
Business Programs provide financial backing and technical assistance to stimulate business creation and growth. The programs work through partnerships with public and private community based organizations and financial institutions to provide financial assistance, business development, and technical assistance to rural businesses. These programs help to provide capital, equipment, space, job training, and entrepreneurial skills that can help to start and/or grow a business. Business Programs also support the creation and preservation of quality jobs in rural areas.
Business Industry Loan Guarantees
What does this program do?
This program offers loan guarantees to lenders for their loans to rural businesses.
What lenders may apply for this program?
Lenders need the legal authority, financial strength, and sufficient experience to operate a successful lending program. This includes lenders that are subject to supervision and credit examination by the applicable agency of the United States or a State including:
- Federal and State-chartered banks.
- Savings and loans.
- Farm Credit Banks with direct lending authority.
- Credit unions.
Other non-regulated lending institutions may be approved by the Agency under the criteria of the OneRD Guarantee Loan Initiative regulation.
Rural Business Development Grants in Arizona
What does this program do?
This program is designed to provide technical assistance and training for small rural businesses. Small means that the business has fewer than 50 new workers and less than $1 million in gross revenue.
Who may apply for this program?
Rural public entities including, but not limited to:
- State agencies.
- Nonprofit corporations.
- Institutions of higher education.
- Federally-recognized tribes
- Rural cooperatives (if organized as a private nonprofit corporation).
Quality Jobs is a tax credit to encourage continuous employment through up to $9,000 of Arizona income or premium tax credits spread over three years for each net new quality job.
The Arizona legislature established the Qualified Facility tax credit to encourage business investment to produce high-quality employment opportunities and enhance Arizona’s position as a center for corporate headquarters, commercial research, and manufacturing. The Arizona Commerce Authority may authorize up to $125 million per calendar year in tax credits to qualified companies through December 2030.
Computer Data Center (CDC) Program
The CDC Program encourages computer data center operation and expansion in Arizona through Transaction Privilege Tax and Use Tax exemptions for up to ten calendar years.
The Angel Investment program expands early-stage investments in targeted Arizona small businesses through tax credits to investors. Additionally, state capital gains taxed associated with those investments are eliminated.
Research & Development
The Research & Development program allows for an Arizona income tax credit to businesses investing in R&D activities in the state.
Infill Incentives District
On September 3, 2019, the City of Kingman City Council approved an Infill Incentive District under Resolution No. 5239 to encourage commercial development in Kingman’s targeted areas, per Arizona Revised Statutes §9-499.10. Locations include portions of downtown Kingman, W. Beale Street and E. Andy Devine Avenue. Building permit, plan review, report review, and inspection fees are waived for any commercial development proposed in this district until December 31, 2025.
Facade Improvement Program
The Facade Improvement Program is a Small Business Recovery Program established by the City of Kingman Economic Development Department to encourage the beautification of Kingman’s commercial buildings. Application forms may be submitted at any time for review monthly, with funds awarded until they are expended. Please contact Monica Murphy, Grants Administrator, at (928) 753-8159 if you have any questions.
Many Kingman business owners have been assisted through the Façade Improvement Program, and due to its popularity, funds are expended for FY22/23. Please check back for program updates.
The Murals Program is a Small Business Incentive Program established by the City of Kingman Economic Development Department to encourage the beautification of Kingman’s commercial buildings in the downtown project boundary area. This is the first year that this program has been launched and the project boundaries may expand in the future. Application forms may be submitted at any time for review monthly, with funds awarded until they are expended. Please contact Monica Murphy, Grants Administrator, at (928) 753-8159 if you have any questions.