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Greater Yuma Economic Development Corporation promotes Yuma County as an attractive place to do business. Businesses locating to Yuma, Arizona can take advantage of a multitude of targeted incentive programs offered by local, state and federal entities which can significantly reduce property, sales and income taxes.
LOCAL INCENTIVES
New Market Tax Credits
Below market interest loans guaranteed by federal government for the purpose of stimulating development in rural communities. Companies utilizing New Market Tax Credits pay on the interest only of the loan for seven years. After the 7th year, the loan is forgiven and the company is awarded the principal and equity of the loan.
Yuma Private Industry Council
YPIC offers programs that cover the entire costs of employee training, including teaching, materials, equipment and other expenses. Companies can additionally qualify for reimbursement of 50% employee salaries paid during training for up to 6 months.
STATE INCENTIVES
Arizona’s $25 Million Deal Closing Fund
Arizona has taken a progressive position by offering attraction funds to companies meeting performance measures that benefit both the company and the citizens of Arizona. Utilization of this resource will generate investment in business projects that stimulate and promote industries providing high-wage and stable jobs. In order to assure a return on investment to the state, performance safeguards are a requirement of these funds.
Income Tax Credits Up to $9,000 for Each Qualifying New Job
The Quality Jobs Tax Credit replaces Arizona’s expiring Enterprise Zone Program. It provides per-employee tax credits of $3,000 per year for up to three years. Credits may be carried forward for five years. Eligibility qualifications are different from rural and metro areas and focus on capital investment and net new job creation (5 new jobs – rural/25 new jobs metro).
30% Reduction in Arizona’s Corporate Income Tax Rate
Corporate income tax rates in Arizona will be decreasing from 6.97% down to 4.9% from 2014 to 2017. This new 30% lower rate makes Arizona’s rate one of the five lowest in the country.
$1.5 Million in Reimbursable Grants to Train Employees
Arizona provides reimbursable grants to employers that implement job-specific training plans for new jobs or for training plans that increase the skill level of current employees. Award amounts range from $2,000 to $8,000 per position depending upon company size and location.
100% Electable Sales Factor for Multi-State Corporations
New legislation increases the electable sales factor for multi-state corporations from 80 % to 100% between FY2014 and FY2017. This provides businesses with the opportunity to reduce their tax burden.
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Greater Yuma Economic Development Corporation invites you to discover the advantages of bringing your business to Southwest Arizona, where we combine our superior location with a business friendly attitude.
Review the various incentives listed to the right to find those that fit your business needs then pick up the phone and give Greater Yuma EDC a call at 928-782-7774. We will work closely with your company to provide information on sites, workforce, incentives, permits and regulations, taxation and infrastructure.
Meeting the unique and changing needs of our communities
State Incentives Continued
15% Increase in Personal Property Exemptions
Effective with the 2011 tax year, Arizona’s personal property exemption is increasing from $67,000 up to $79,000 by using the Employment Cost Index (ECI) rather than the Gross Domestic Product Implicit Price Deflator (GDPIPD).
Lower Commercial Property Assessment Ration—just 18%
The Arizona commercial property assessment ratio is being reduced by 10% down to 18% by 2017. This continues a 10-year trend of reducing property taxes in Arizona.
Accelerated Depreciation Schedules
Five-year accelerated depreciation schedules have been increased to help companies recover their investments even faster.
Research and Development Tax Credit
The Arizona Competitiveness Package provides increased tax credits on qualified R&D expenditures — credits will now range from 25% to 34%. R&D expenditures must be made in cooperation with an Arizona university. Tax credits are based upon R&D increases over prior years.
With Tax Credits and Tax Improvements for a Small Business
Arizona’s Angel Tax Credits are now available to a much larger group of companies. Improvements to this credit include elimination of capital gains tax for investments made in qualified small businesses.
Tax Reductions by Investing in Renewable Energy
Companies engaged in solar, wind, geothermal and other renewable energy industries may obtain up to a 10% refundable income tax and up to a 75% reduction on real and personal property taxes.
FEDERAL INCENTIVES
Foreign Trade Zone
Arizona offers up to an 80% reduction in state real and personal property taxes by operating in a Federally qualified Foreign Trade Zone. The reduction is good for the entire time that a company operates in the FTZ.
