News & Insights

Arizona Expands Income Tax Credit for Qualified Facilities

Tax Development Mar 26, 2021

Arizona Expands Income Tax Credit for Qualified Facilities

On March 23, 2021, the governor of Arizona signed a law increasing the benefits for expanding or locating a qualified facility in Arizona. The new law expands the definition of qualified headquarters by removing the requirement that the taxpayer must be involved in manufacturing. It also expands the definition of qualified manufacturing to include direct sales of at least 65% of their output to other qualified facilities. For facilities that invest more than $2 million, the amount of the credit was increased to the lesser of 10% of the amount invested or $300,000. The law also raises the aggregate amount that can be awarded under this program from $70 million to $150 million per calendar year. Ryan’s Credits and Incentives team can help your company determine if it is eligible for this expanded credit and assist in the application process with the Arizona Commerce Authority.


Mark L. Nachbar

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