The Tempe Economic Development Division will assist
businesses in finding appropriate state incentive programs that could help
them. To take advantage of these, please contact Sheri Wakefield-Saenz at (480)
350-8812.
Arizona Job Training Program
Arizona believes that training is vital to any career and backs up this
belief with generous programs. The Arizona Job Training Program provides
grant money to companies creating new jobs or retraining existing workers in
Arizona. Funds can be used to offset costs associated with developing and
implementing a job training plan to meet the company’s specific
requirements.
This program comes in two parts: the New Employee Training Grant and the
Existing Employee Training Grant. In order to qualify for either program, a
company must meet the average annual salary requirement after the completion
of training. The highest wage requirement for this program applies to
businesses located in Maricopa County at $35,110 ($16.88 per hour) for its
new/existing employees. If the company is under 300 employees, located in an
enterprise zone, or located outside Maricopa County, the average annual
salary requirement is lower.
State Income Tax Credit for Qualified Research and Development
This allows a company to receive a tax credit for qualified research and
development that is conducted in Arizona, including research conducted at a
state university and funded by the company.
Pollution Control Tax Credit
This provides a 10 percent income tax credit on real or personal property
used to control or prevent pollution.
Transaction Privilege and Use Tax Exemption
This exempts the sales of machinery and equipment used directly in
manufacturing operations from the state transaction privilege and use tax.
Private Activity Bonds
These can be used for the construction of industrial and manufacturing
facilities and equipment. The interest on the bonds is exempt from federal
income tax for most bondholders. A manufacturing company can issue bonds up
to $10 million within the jurisdiction of the issuing Industrial Development
Authority. The allocation process allows a project to qualify under the
manufacturing pool, which is 15 percent of the state’s allocation.
Accelerated Depreciation
This provides an aggressive accelerated depreciation schedule to encourage
new capital investment and reduce a company’s personal property tax
liability. The City of Tempe works with company personnel to analyze tax
liability and identify specific benefits of the accelerated depreciation
schedule.
Foreign Trade Zone Program - Duty-Free Storage
The FTZ is a secured area treated as though legally outside of the U.S.
Customs territory where merchandise may be brought duty-free for purposes
such as storage, repacking, display, assembly or manufacturing. Imports may
be landed and stored quickly without full customs formalities.
Arizona is the only state in the U.S. that has enacted special legislation
that provides an 80 percent reduction in real and personal property taxes
for companies qualifying for FTZ or sub-zone designation.