Arizona Competes! 

In early 2011, Governor Jan Brewer signed into law HB2001 – The Arizona Competitiveness Package.This legislation marks a new level of Arizona commitment; making it easier for existing Arizonacompanies to be more prosperous and it establishes Arizona as one of the most desirable places forexpanding companies to do business. Arizona is helping you to compete. We invite you to dialoguewith our team to discover how these incentives, and others, can be put to work for you!

Tap Into …                    Our $25 million Arizona Competes Fund

Arizona has taken a progressive position by offering attraction funds to companies seeking growth in Arizona.Utilization of the Arizona Competes Fund will generate investment in business projects that stimulate andpromote 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.

www.azcommerce.com

Earn…          Income tax credits up to $9,000 for each qualifying new job

The Quality Jobs Tax Credit program provides tax credits of up to $3k per year for three years for each new job.Unused credits may be carried forward for five years. Eligibility qualifications are different for rural and metroareas and focus on capital investment and net new job creation (rural – cap. investment of $1M and 5 new jobs/ Urban – cap. investment of $5M and 25 new jobs).

Receive…       Up to $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 fortraining plans that increase the skill level of current employees. Award amounts range from $2,000 to $8,000 perposition depending upon company size and location.

Take advantage…      Of Arizona’s 100% electable sales factor for multi‐state corporations

Our new legislation increases the electable sales factor for multi‐state corporations from 80% to 100% betweenFY2014 and FY2017. This provides businesses with the opportunity to reduce their tax burden.

Leverage…      A 34% research and development tax credit

The Arizona Competitiveness Package provides increased tax credits on qualified R&D expenditures ranging from24% to 34%. R&D investments made in cooperation with an Arizona university may receive maximum tax credits.Tax credits are based upon R&D increases over prior years. Fully utilized, this improved tax credit will stimulate$100 million of research conducted in partnership with our public universities. Arizona will be among the topstates encouraging such public / private research collaboration.

Obtain…                    Tax reductions by investing in renewable energy

Companies engaged in the solar, wind, geothermal and other renewable energy industries may obtain up to a10% refundable income tax credit and up to a 75% reduction on real and personal property taxes.

Capitalize… On Arizona’s lower commercial property assessment ratio – just 18% 

Reduced by 10%, the Arizona commercial property assessment ratio will be 18% by 2017. This continues a 10‐year trend of reducing property taxes in Arizona.

Utilize…          Arizona’s improved accelerated depreciation schedules

Five‐year accelerated depreciation schedules have been increased to help companies recover their investmentseven faster.

Get Rewarded…         With tax credits and tax improvements by growing a small business 

Arizona’s Angel Tax Credits are now available to investors who want to invest in larger companies. Additionalimprovements to the program include elimination of capital gains tax on income derived from investments incompanies certified by the ACA (beginning 2014).

Hold Costs Down…    By operating in Foreign Trade Zones or Military Re‐Use Zones

FTZ ‐ Arizona offers up to an 80% reduction in state real and personal property taxes by operating in a Federallyqualified Foreign Trade Zone. The reduction is good for the entire time that a company operates in the FTZ.Military Re‐Use Zone – Aerospace companies operating in a qualified MRZ can receive up to $7,500 income taxcredits over five years for non‐dislocated employees and $10,000 for dislocated employees. Five year carryforward provision for unused tax credits. Also receive a five‐year reclassification of real and personal property.Receive exemption of transaction privilege tax on approved construction.

Please contact us to explore how these AND other incentives can help you to be more competitive by operating and growing your business in Arizona! 

Improve…                    Your bottom line by a 15% increase in personal property exemptions

Effective with the 2011 tax year, Arizona’s personal property exemption is increasing from $67,000 up to $79,000by using the Employment Cost Index (ECI) rather than the Gross Domestic Product Implicit Price Deflator(GDPIPD).

Benefit…                    From a 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 new30% lower rate makes Arizona’s rate one of the five lowest in the country.

Allison Gilbreath                       

1700 West Washington Street  Executive Tower, Suite 600   Phoenix, AZ  85007                    T 602‐771‐1123                                      C 602‐370‐6542                        F 602‐771‐1200                       AllisonG@AZcommerce.com

Vice President                   Business Attraction

Incentives, programs and tax benefits are available subject to qualification according to the enabling legislation, or administrative guidelines, as may be applicable. Inclusion is for information purposes and does not constitute an offer.