Technology Business Programs

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.