State of Arizona Incentives
The Arizona Commerce Authority (ACA) is the state's economic development organization with a streamlined mission to grow and strengthen Arizona’s economy. Arizona has lowered taxes, streamlined regulations, and established a suite of incentives to support corporate growth and expansion. For the complete list of incentives and programs offered by the ACA, please click here.
Arizona Innovation Accelerator Fund
The Arizona Innovation Accelerator Fund Program is an $18.2 million loan participation program. The goal of this program is to stimulate financing to foster business expansion and job creation in Arizona. Business with less than 500 employees in target industries including bio, life sciences, electronics, IT, aerospace and defense and advanced manufacturing with operations in AZ or the intent to establish new operations in AZ are eligible. Loan proceeds are to be used for working capital, inventory, equipment purchase, and real property improvements.
AZ STEP Grant
ACA has launched Arizona’s State Trade and Export Promotion (STEP) program which is funded through a grant from the US SBA and matching contribution by the ACA. The STEP program will assist small businesses (less than 500 employees) to enter export markets for the very first time or to expand into new markets.
Qualified Facility Tax Credit Program
The Qualified Facility Tax Credit Program stimulates job creation and capital investment in the manufacturing sector. The program provides a refundable tax credit for qualifying capital investment made at a manufacturing facility, including a manufacturing-related research or headquarters facility. The credit is equal to the lesser of 10% of the qualifying capital investment or $20,000 per net new job at the facility. All of the net new jobs must, among other criteria, provide health insurance benefits for which the company pays at least 80% of the premiums. 51% of the new jobs must pay 125% of the county median wage.
Quality Jobs Tax Credit
The Quality Job program offers up to $9,000 of Arizona income or premium tax credits spread over a three year period for each net new quality job. If the allowable tax credit exceeds the income or premium tax liability, any unused amount may be carried forward for up to five consecutive taxable years.
Research & Development
The Research and Development Tax Credit program provides an AZ 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. ACA has been given the authority to refund up to $5 million in any calendar year. Company employs less than 150 full-time employees company wide.
Commercial/ Industrial Solar
The Commercial/ Industrial Solar Energy Tax Credit is to stimulate the production and use of solar energy in commercial and industrial applications by subsidizing the initial cost of solar energy devices. The tax credit is equal to 10% of the installed cost of the solar energy device not to exceed $25,000 in credits for one building in a single tax year and $50,000 total credits per business per tax year. Tax credits can be used to offset Arizona income tax liability; any unused credit amounts can be carried forward for a five-year period.
Renewable Energy Tax Incentive
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.