Economic Incentives

Programs
In today's business world, the climate is always changing. Fortunately Fountain Hills benefits from significant pro business programs from the state and local levels. The following information describes some of these programs and incentives the Arizona Commerce Authority offers:
  • Arizona Competes Fund: An annual state-wide 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.
  • Arizona Fast Grant: The Fast Grant enables Arizona-based technology companies to initiate the commercialization process. The grant provides companies up to $7,500 to receive one or more select consulting services.
  • Commercial/Industrial Solar Energy: Businesses installing a solar energy device at an Arizona facility may be eligible for an income tax credit of up to $50,000 per year.
  • Corporate Income Tax: Corporate tax rate reduction from 6.97% - 4.9%.
  • Innovation Accelerator Fund: The Innovation Accelerator Fund is an $18.2 million loan participation program to stimulate financing to small businesses and manufacturers.
  • Job Training Program: A job-specific, reimbursable grant program that supports the design and delivery of customized training plans for employers creating new jobs or increasing the skill and wage levels of current employees. An employer creating net new jobs can receive up to a 75% reimbursement of eligible training expenses. An employer seeking to supplement current training programs of existing employees may receive up to a 50% reimbursement of eligible training expenses.
  • 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.
  • 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 must make a minimum capital investment of $1 million and create at least five quality jobs to qualify.
  • Renewable Energy: 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.
  • Research and Development: Refundable income tax credits are available for investment in R&D activities conducted in Arizona. The income tax credit starts at 22% of the qualified R&D expenses for amounts in excess of expenditures from the previous year. 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: Administered by the Arizona Commerce Authority, 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 are exempt from the state transaction privilege and use tax.
More Information
For more information, visit the Arizona Commerce Authority website.