Aerospace & Defense Incentives
City of Yuma Economic Development Incentive Fund
The City of Yuma has created a performance based incentive fund designed to encourage new business development, business expansions and relocations.
Workforce Salary and Training Grant
Yuma’s Workforce Board 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.
Foreign Trade Zone #219
Along with duty and tariff elimination or reduction, 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.
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.
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.
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.
Qualified Facilities Program
Offers a refundable income tax credits equal to the lesser of 10% of the qualifying capital investment, or $20,000 per net new job at the facility.
Research & Development
Refundable income tax credits are available for investments in research and development activities conducted in Arizona. The tax credit starts at 22% of the qualified R&D expenses for amounts in excess of expenditures from the previous year. Recent legislation enhances the tax credit amount up to 34% if increased R&D expenditures are made in conjunction with an Arizona public university.
Lower Commercial Property Assessment Ratio—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.