Government Property Lease Excise Tax (GPLET)
The GPLET can provide up to eight (8) years of property tax abatement. This incentive is available for projects located in the Central Business District and result in property value increase to at least 100%. The amount abated cannot exceed the economic benefit created by the project. To become “government property” the City will take ownership of the property for the duration that the owner wishes to be relieved of tax obligations. Actual abatement may begin after April 17, 2013. Applications for this incentive are currently being accepted.
Primary Jobs Incentive Program (PJIP)
The Primary Jobs Incentive assists Tucson in its efforts to bring quality jobs and investment into the region. The incentive provides up to a 100% credit of construction sales tax to qualifying expenses such as job-training, the project’s public infrastructure improvements and/or offsets to impact fees. The City will also waive building permit fees. Any project is eligible if it: a) invests a minimum of $5 million in facilities or equipment, b) creates 25 jobs that pay average wages of at least $60,000, and c) the employer covers at least 75% of employee health premiums.
Tucson Industrial Development Authority (TIDA) Bonds and Loans
The TIDA may provide financing of projects whenever appropriate and where traditional sources of funding may not be available. Projects must serve a public purpose while sustaining the long-term fiscal viability of the TIDA. The TIDA places an emphasis on new and expanding businesses where sources of traditional capital are not available.
Historic Preservation Tax Credits
There are 566 designated historic buildings in commercially-zoned areas in the city of Tucson and another 1,040 buildings that are potentially eligible for historic designation. Approved rehabilitations of these properties are eligible for significant federal and state tax credits.
Incentive District & Areas
A $10,000 building permit fee waiver per project and a construction sales tax credit for public right-of-way improvements are available for developments in this district. The downtown core district is defined by Union Pacific Railroad to the north and east, Cushing street, 14th Street and 12th Street on the south and Meyer Avenue on the west.
Rio Nuevo Multi Facilities District is a Tax Increment Financing district formed to utilize a portion of state sales tax dollars to revitalize Tucson’s downtown core. The District mission is to partner with the private sector to build the vital components of a vibrant downtown. Downtown Tucson is now considered one of the most successful urban environments in the country, home to 65 new restaurants, a remodeled arena, busy concert venues, revitalized theaters, modern light rail, and corporate headquarters like Unisource Energy, Madden Media, Sinfonia Healthcare, Samsung’s SmartThings and Caterpillar. 2,200 new housing units are being built in downtown Tucson connected to urban living through the new Modern Streetcar.
Rio Nuevo has been a partner in a variety of downtown projects and can be incredibly flexible assisting with gap financing, Government Property Leaseback Excise Tax, build and lease programs, construction financing, tenant improvement and build to suit parking solutions. Rio Nuevo has participated in private parking garages, housing projects, restaurant and bar development, concert halls, hotels, retail start up, corporate headquarters construction and relocation incentives. Rio Nuevo was instrumental in recruiting Caterpillar’s Surface Mining and Technology Division to downtown Tucson and will build the 150,000 square foot headquarters building and lease it to Caterpillar.
City Incentives & Programs
Infill Incentive Districts
If your business will be located in Douglas historic Downtown Business District, it may be eligible for the waiver or reduction of certain fees and requirements. The Downtown Business District Infill Incentive encourages development and redevelopment in the area of Douglas located west of 6th – 16th Street, on G and F Avenue.
Other Incentive Options
- Arts and Culture District Incentives
- Government Lease Excise Tax (Gplet)
- Impact Fee Relief Incentives
- New Business District Tax Incentives
- New Business Start-Up Incentives
The City does not impose a business/payroll tax.
Sales & Use Tax Exemptions
- Rebate of all or a portion of the sales tax revenues levied, generated, and received by the City as a result of the construction of a new, or expansion of an existing, commercial or industrial project.
- Rebate of all of the sales tax revenues levied, generated, and received by the City as a result of the construction of a solar power project
- Rebate of all of the sales tax revenues levied, generated, and received by the City as a result of the purchase of equipment for Biomass projects
City of Casa Grande Rebate Program
- Any or all fees required to be paid in conjunction with the construction or expansion of a commercial or industrial project, including, but not limited to, plan checking fees, inspection fees, and sewer connection fees.
- General funds to pay the costs of construction of off-site public improvements which the City determines are required to be constructed in connection with a commercial or industrial project.
- All or a portion of the sales tax revenues levied, generated and received by the City as a result of the construction of a new, or expansion of an existing, commercial or industrial project.
- All or a portion of the property tax revenues levied, generated and received by the city as a result of the construction of a new, or expansion of an existing, commercial or industrial project.
Marana Job Creation Incentive Program
The Marana Job Creation Incentive Program (MJCIP) is a local incentive offered by the Town of Marana that helps businesses to locate or expand in Marana by receiving reimbursement from reallocation of construction sales tax on new construction or expansion projects according to specific employer qualifications.
Downtown Marana Reinvestment Fund
The Downtown Marana Reinvestment Fund (DMRF) is a local incentive offered by the Town of Marana with the goal of stimulating development of our designated Downtown District. The program reallocates construction sales tax revenues and general sales tax revenues from new projects and businesses downtown in an effort to pay for beautification and infrastructure to attract more development in this district.
Sierra Vista has demonstrated our commitment to economic growth by putting our dollars behind our beliefs. Our economic development division will usher you through the development process, answering general questions, assisting with site selection and helping with permitting. And when you receive your certificate of occupancy, we will continue to assist with your needs, building a partnership that will last well into the future.
Some of the benefits of locating within Sierra Vista include:
- Development fee deferrals
- Fast track permitting and review
- Site selection assistance
- Workforce development and training reimbursements
- Foreign trade zone
- Industrial development bonds — tax-exempt securities for manufacturing
- Energy auditing & Rebates
- Zero interest loans for electrical efficiency upgrades
- Zero interest facade improvement loans