Investor Login

State 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.

QUALIFIED FACILITY TAX CREDIT

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, or
  • $30,000,000 per taxpayer per year

Learn more here.

MANUFACTURING SALES TAX EXEMPTIONS

Companies that purchase machinery and equipment used directly in manufacturing in Arizona are exempt from paying sales tax. Additionally, businesses that are principally engaged in manufacturing are exempt from paying sales tax on the purchase of electricity or natural gas.

Learn more here.

QUALITY JOBS TAX CREDIT

The Quality Jobs tax credit encourages business investment and the creation of high-quality employment opportunities in the state. The 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.

Learn more here.

Business Advantages in Arizona

  • Additional Depreciation
  • Personal Property Tax Rate of 25%
  • No Inventory Tax

RESEARCH & DEVELOPMENT TAX CREDIT

  • The Research and Development tax credit program 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 R&D tax credit has both non-refundable and refundable programs. The non-refundable credit is administered by the Arizona Department of Revenue. The refundable credit is administered by the Arizona Commerce Authority and is limited to companies with less than 150 full-time employees at all locations, worldwide.

    Learn more here.

Connect With Us

Want to learn more? A member of The Chamber’s Business Development team will respond to any written inquiry within one business day.

Daniela Gallagher

Vice President, Economic Development
Email