Incentives

In today's fast paced business world, the climate is always changing. The Town of Fountain Hills benefits from significant pro-business programs at the state and local levels. The following information describes some of these programs and incentives the Arizona Commerce Authority (ACA) offers:

  • Arizona Competes Fund: An annual state-wide deal closing fund of $25 million. A portion is available to qualified organizations achieving performance measures that stimulate and promote industries that provide stable, high-wage jobs.
  • Additional Depreciation: To encourage new capital investment, Arizona provides accelerated depreciation schedules for commercial personal property. Depreciation schedules for most equipment classes provide for depreciation down to 2.5% of original value, thus virtually eliminating the tax liability.
  • Qualified Facility Tax Credit: To stimulate the creation and expansion of manufacturing facilities, including manufacturing-related R&D and headquarters facilities, the state provides refundable income tax credits to companies who expand or locate a Qualified Facility in Arizona. Firms must make a capital investment of at least $250,000 and devote 80% of the property and payroll to manufacturing, manufacturing-related R&D, or headquarters. At least 51% of net new full-time positions must pay the state’s annual median production wage, firms must pay 65% of the health insurance premiums for full-time positions. Credits are equal to the lesser of 10% of qualifying capital investment or $20,000 per net new job at the facility with a maximum award amount of $30 million per taxpayer per year.
  • Quality Jobs: The Quality Jobs program offers up to $9,000 of Arizona income or premium tax credits spread over three years for each net new quality job. Businesses locating in Maricopa County must make a minimum capital investment of $1 million and create at least five quality jobs to qualify.
  • Research and Development: Partially refundable income tax credits are available for investment in R&D activities conducted in Arizona. The income tax credit starts at 24% of the qualified R&D expenses for amounts in excess of expenditures from the previous year up to $2.5 million. The tax credit goes up to 34% if increased R&D expenses are made in conjunction with an Arizona public university.
  • State Trade and Export Program: The State Trade and Export Program (STEP) offers various types of technical assistance/capacity building and financial assistance to Arizona small businesses as they go global for the first time with their sales or enter new international markets.
  • Transaction Privilege and Use Tax Exemption: Sales of machinery and equipment used directly in manufacturing operation and computer data centers are exempt from the state transaction privilege and use tax. Computer data centers are subject to capital investment requirements in order to exempt qualified purchases.

For more information, visit the Arizona Commerce Authority website at azcommerce.com.