Incentives for Agribusiness
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.
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.
YUMA COUNTY ECONOMIC DEVELOPMENT INCENTIVE FUND
Yuma County has created a performance based incentive fund designed to encourage new business development, business expansions and relocations with job training or infrastructure improvements. The value of the fund is indexed upon the cost to hire and trained qualified new employees and/or infrastructure improvements to county maintained property.
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.
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.
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.
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.