Arizona Competitive Package
Arizona’s new Competitiveness Package (HB2001) provides the most sweeping economic development legislation seen in decades. Arizona is committed to helping businesses succeed. The many new features and incentives allow businesses to:
Earn income tax credits up to $9,000 for each new job under the Quality Jobs Program
Obtain renewable energy income tax credits and property tax reductions
Receive up to $1.5 million in reimbursable grants to train employees
Leverage up to a 34% research and development tax credit
Arizona's 100% electable Sales Factor for Multi-state Corporations: Increases the electable sales factor for multi-state corporations from 80% to 100% between FY 2014 and FY 2017. The increase is to occur in equal increments over a four-year period. A corporation that conducts business both in-state and out-of-state must apportion its income from business activity based on the ratio of property, payroll, and sales in Arizona compared to the corporation’s property, payroll, and sales everywhere.
Corporate Income Tax: Benefit from a 30% reduction in Arizona’s corporate income tax rate which Reduces the corporate income tax rate from 6.97% to below 4.9%, between FY 2014 and FY 2017. The reduction is to occur in equal increments over a four-year period.
Commercial Property Assessment Ratio: Capitalize on Arizona’s reduced commercial property assessment ratio – 18% from our current 20% by 2017 thus, the adjustments will occurs as follows: 19.5% by 2014, 19% by 2015, 18.5% by 2016 and 18% by 2017.
Personal Property: Improve your bottom line by a 15% increase in personal property exemptions by Accelerated Depreciation - Accelerates depreciation schedules for prospective acquisitions of commercial personal property initially placed on the tax rolls on or after 2012.
Businesses with class three and four personal property may qualify for a four-year accelerated depreciation. This accelerated depreciation reduces the full cash value of the property by 40% the first tax year, 56% of the scheduled depreciated value the second year, 72% of the scheduled depreciated value the third year and 88% of the scheduled depreciated value the fourth year. In year five, the schedule reverts to the original level.
Chandler Industrial Development Authority (CIDA)
CIDA offers businesses the ability to finance new manufacturing projects with tax-exempt industrial revenue bonds (IRB's). Eligible projects include new, improved or expanded manufacturing facilities, and manufacturing equipment. The interest rates for these IRB's tend to be significantly lower than prime, and the interest on the bond is exempt from federal and state income tax.
Economic Strength Project (ESP) Grants
ESP grants are available for the construction of transportation infrastructure directly related to new or expanding development projects. Matching funds are required.
Foreign Trade Zone
The City of Chandler has the ability to request a foreign trade sub zone on the behalf of a company. This sub zone is site specific, and businesses which are activated in the sub zone can receive the benefit of deferring duty on imported goods. The advantage of the foreign trade zone is that imported goods are allowed to be manufactured within the zone and commingled with domestic and other foreign goods, and the businesses pay the lesser of the duty on the goods as imported or as a component of the final product. In addition, goods that never enter the US customs territory, such as waste or defects, never pay duty. State law also provides for an 80% property tax reduction on both real and personal property for business activated within a foreign trade zone sub zone.
IT (Information Technology) Tax Credits
Available to businesses as a 50-50 match for training up to 20 employees in IT skills during calendar year 2001. The set aside is capped at $5,000,000 with half the fund ear-marked for corporations (S, C, LLC) and the other half for sole proprietorships and partnerships. The per-employee tax credit cannot exceed $1,500 and if the total number of qualifying applications exceeds the capped amount, the per-employee credit will be reduced proportionately.
For Application Click Here (pdf)
Sales Tax Exemption
Arizona exempts the sale of machinery used directly in manufacturing from both the state transaction privilege and use taxes.
Work Force Development
The Arizona Work Force Recruitment and Job Training program provides short-term customized grants for the training of net new employees. The program is administered in coordination with training providers such as the community colleges, private post-secondary institutions, trade school or with the applicant itself. The program funds up to 75% of the total eligible costs, with the company contributing the other 25%. Recent awards range from $300 to $1,000 per employee. The City of Chandler works closely with the Maricopa Community College District to assist companies with all facets of work force needs. This includes developing customized training programs, providing recruitment and pre-screening, and assisting with the application process for the Arizona Work Force and Job Training Grant.
City of Chandler Programs
Commercial Reinvestment Program
The Chandler City Council approved a Commercial Reinvestment Program (CRP) in 2001 to encourage private reinvestment in existing centers that resulted in upgrading the appearance of these centers while also lowering the vacancy rates in the community.
The City of Chandler provides excellent customer service throughout the development process, and works closely with companies to ensure that project reviews are done in a timely manner. The City Planning and Development Department is committed to working with businesses on planning, zoning and permitting issues.
Site Selection: The City of Chandler, Arizona can assist companies with identifying available sites ans site selection. The City works closely with the local real estate brokerage community to provide the most up-to-date information on availability of sites. The City also has an extensive database on available land sites and on-going relationships with local developers and land owners. For more information contact Economic Development Department at 480-782-3030.
Colonnade Signage Program
Colonnade Signage Program: To recapture the effectiveness of the colonnade signs, the Chandler is encouraging downtown businesses to install signs on the front of the colonnade facing the street. The Colonnade Signage Program is designed to assist downtown business owners with installing this signage providing grants of up to $650 per business for the creation and installation of one sign which would hang from the Colonnade facing the street. The money can be used for design fees, materials, and/or installation of the sign. The sign must conform with the Downtown Sign Code and receive a permit to be considered for the program.