Federal Incentives & Programs
The federal Opportunity Zones program was created under a provision of the Tax Cuts and Jobs Act. Investors who reinvest capital gains monies in Opportunity Zone funds will receive reductions on capital gains taxes relative to the years of their investment. (Source: Arizona Commerce Authority)
View a map of Opportunity Zones in Tucson and Southern Arizona.
- Investments held 10 years: taxable amount of the capital gains reinvested is reduced by 15% and no tax is owed on appreciation.
- Investments held 7 years: taxable amount of the capital gains reinvested is reduced by 15%.
- Investments held 5 years: taxable amount of the capital gains reinvested is reduced by 10%.
Foreign Trade Zone
Foreign Trade Zones (FTZs) are designated areas licensed by the Foreign Trade Zone Board at which special customs procedures may be used. The FTZ program was established to encourage and expedite U.S. participation in international trade and is a mechanism for companies to manage duty payments. FTZs are considered outside the U.S. Customs territory, so goods received into FTZs are generally not subject to duties, tariffs or quotas until, and if, they leave the zone. A site which has been granted zone status may not be used for zone activity until the site has been separately approved for FTZ activation by local U.S. Customs and Border Protection (CBP) officials.
Sun Corridor Inc. is the administrator for FTZ #174, which covers Pima County and southern Pinal County. To learn more and to receive assistance with the application contact Daniela Gallagher.
work opportunity tax credit (WOTC)
The Protecting Americans from Tax Hikes Act of 2015 (the PATH Act) retroactively allows eligible employers to claim the Work Opportunity Tax Credit (WOTC) for all targeted group employee categories that were in effect prior to the enactment of the PATH Act, if the individual began or begins work for the employer after December 31, 2014 and before January 1, 2020. For tax-exempt employers, the PATH Act retroactively allows them to claim the WOTC for qualified veterans who begin work for the employer after December 31, 2014 and before January 1, 2020. The PATH Act also added a new targeted group category to include qualified long-term unemployment recipients.
The DoD SkillBridge program is an opportunity for Service members to gain valuable civilian work experience through specific industry training, apprenticeships, or internships during the last 180 days of service. Through the SkillBridge program, industry partners benefit from gaining early access to the extensive experience, skills, and unmatched work ethos Service members bring to the workforce. Employers craft SkillBridge programs to meet their specific workforce needs, matching those needs to the skills and abilities of highly motivated Service members, all at no cost to the employer. The U.S. Department of Defense pays Service member salary and benefits while the Service member participates in SkillBridge. This opportunity may last up to the final 180-days of service.
connect with us
Susan Dumon | Vice President, Economic Development
Daniela Gallagher | Vice President, Economic Development