The Quality Jobs tax credit encourages business investment and the creation of high-quality employment opportunities in the state.

Quality Jobs accomplishes this goal by providing tax credits to employers creating a minimum number of net new quality jobs and making a minimum capital investment in Arizona.

The Quality Jobs tax credit offers up to $9,000 of Arizona income or premium tax credits spread over a three-year period for each net new quality job ($3,000 per year).

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This program encourages computer data center (CDC) operation and expansion in Arizona by providing TPT and Use Tax exemptions on qualifying purchases.

The Program accomplishes this objective by providing Transaction Privilege Tax (TPT) and Use Tax exemptions at the state, county and local levels, on qualifying purchases of CDC Equipment. The CDC incentive is administered by the Arizona Commerce Authority (ACA) in conjunction with the Arizona Department of Revenue (ADOR).

The TPT and Use Tax exemptions provided by the incentive are available if all of the following are satisfied:

• An Applicant submits an Application for CDC Certification (Application) and receives a Letter of Certification from the ACA.
• The CDC Owner, Operator, and/or Qualified Co-location Tenant collectively satisfy the requisite Capital Investment Threshold in a timely manner and the Applicant submits to the ACA evidence of satisfaction that a Capital Investment of at least $50 million is made within five years of the date of the Letter of CDC Certification from the ACA

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Opportunity Zones are designed to spur economic development by providing tax benefits to investors.

First, investors can defer tax on any prior gains until the earlier of the date on which an investment is sold or exchanged, or December 31, 2026, so long as the gain is reinvested in a Qualified Opportunity Fund. Second, if the investor holds the investment in the Opportunity Fund for at least ten years, the investor would be eligible for an increase in basis equal to the fair market value of the investment on the date that the investment is sold or exchanged.

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Eligible projects within commercial and residential incentive areas will receive a 50% reduction in building permits and plan review fees.

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The Qualified Facility tax credit was established by the Arizona legislature in 2012, and amended in 2016, to promote the location and expansion of manufacturing facilities, including manufacturing-related research & development or headquarters facilities.

The goal of the program is to encourage business investment that will produce high-quality employment opportunities for citizens of Arizona and enhance Arizona’s position as a center for corporate headquarters, commercial research, and manufacturing. The Program accomplishes this goal by providing a refundable tax credit to taxpayers who are expanding or locating a Qualified Facility in Arizona.

A company may be eligible for tax credits if it:

• Makes a Capital Investment of at least $250,000 to establish or expand a Qualified Facility that devotes at least 80% of the property and payroll to qualified manufacturing, manufacturing-related research & development, or headquarters.
• Creates net new full-time employment positions for the project, of which at least 51% are paid at least 125% of the state’s annual median production wage if located in an urban area or 100% of the state’s annual median production wage if located in a rural area.
• Offers to pay at least 65% of the health insurance premiums for all net new full-time employment positions.

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