|
The
Tempe Enterprise Zone is a designated area in which new and existing
businesses may take advantage of benefits such as tax savings, preferred
consideration for loans and job training programs administered by the
Arizona Department of Commerce.
The
primary goal of the Tempe Enterprise Zone is to encourage economic vitality
in disadvantaged areas through the creation of new jobs, the enhancement of
private investment and the strengthening of property values.
What
are the incentives?
State income tax credits for net increases in qualified employment positions.
Property tax reclassification for qualified manufacturing businesses
locating or expanding facilities in an enterprise zone. Qualified businesses
are eligible for an assessment ratio of 5 percent on all personal and real
property within the zone for five years. Call Sheri Wakefield-Saenz at the City of
Tempe Economic Development Division for all the benefits and
qualifications.
How
many state income tax credits are available for qualified positions?
State income tax credits available in the Enterprise Zone are equal to:
-
One
fourth of the taxable wages paid to an employee in a qualified position,
not to exceed $500 per net new position in the first year of partial
employment
-
One
third of taxable wages paid to each previously qualified employee, not to
exceed $1,000 per employee, for the second year of continuous employment
-
One
half of taxable wages paid to each qualified employee, not to exceed
$1,500 per employee, in the third year of continuous employment
Who
qualifies?
All businesses, except those at a business location where tangible personal
property is sold at retail, may qualify for State income tax credits.
Three to five percent of the net eligible employees must live within an
enterprise zone in Maricopa County when hired.
An
eligible employment position is:
-
A
full-time permanent job
-
Pays
an hourly wage that is better than the Wage Offer by Maricopa County
-
Provides health insurance to employees for which the employer pays at
least 50 percent
A
qualified manufacturer for property tax reclassification is either minority
or woman-owned, a small business with fewer than 100 employees or with fewer
than $4 million in gross sales and makes an investment of $2 million or more
in fixed assets in the Enterprise Zone.
To find out more about Enterprise Zones, please contact the Economic
Development Division at 480-350-8028.
The
Arizona Department of
Commerce Address Locator is another method that businesses can use to
research properties. |
