Arizona Governor Doug Ducey has signed into law legislation to improve one of Arizona’s main tax incentives administered by the Arizona Commerce Authority. House Bill 2666, sponsored by Representative Karen Fann, includes amendments and reorganizations that affect Arizona’s business incentives. Highlights of the bill include:
- Office of Economic Opportunity
- Establishes the Governor’s Office of Economic Opportunity, which will conduct research and analysis of Arizona’s tax and regulatory environment in contrast with competing states
- Qualified Facility Income Tax Credit
- Extends the expiration of the credit three years to December 31, 2022
- Provides a more achievable wage threshold for a qualified business in a rural area of the state
- Reduces the employer-paid healthcare benefits threshold
- Adds a focus to “Production Occupations”
- Production Occupations – Defined by the U.S. Bureau of Labor Statistics as positions containing an Occupation code beginning with 51-XXXX
- Allows a developer’s investment in a build-to-suit facility to contribute to the capital investment threshold and tax credit calculation
- Arizona Competes Fund
- Extends the program by two years to July 1, 2018
- 30% of the annual allocated funds shall be reserved for grants supporting projects for rural businesses, small businesses, and business development that enhance economic development
- 25% of the annual allocated funds shall be reserved for grants supporting projects of businesses in a county with a population less than two million persons
The state of Arizona is continuing to build a business-friendly environment as it becomes a more competitive state among its peers in the West Region.
TECHNICAL INFORMATION CONTACT:
Michael Camden, CPA*
Manager
Ryan
512.476.0022
michael.camden@ryan.com
*Ryan is not a CPA firm.