Incentives

Federal

  • SBA HUBZone Program

    Navajo County, including the City of Show Low, is qualified as a HUBZone—giving eligible companies access to additional Federal contracting opportunities.  To be eligible for the program, a business must meet all of the following criteria:
     
  • Designated as a small business by SBA standards.
  • Located in a "historically underutilized business zone" (HUBZone).
  • Wholly owned and controlled by U.S. citizen/s.
  • At least 35% of employees must reside within the HUBZone.
  •           Click on SBA Hubzone Program for more information.

    State of Arizona

  • Arizona Job Training Program
  • This is a job-specific reimbursable grant program that supports the design and delivery of customized training to meet specific needs of employers, create new jobs and help increase the skill and wage levels of employees in Arizona. This program is funded by Arizona employers who pay into the Job Training Tax equal to one-tenth of one percent on the first $7,000 of an employee’s wages or $7.00 per year, whichever is lower.

    Businesses can receive up to 75% reimbursement on costs of training net new employees in jobs that pay at or above $18,423 annually (FTE $8.86 per hour), not including benefits. Award amounts range from $5,000 to $8,000 per job with a single employer maximum of $1,500,000.

    The "Incumbent Worker" portion of the grant program will allow for training that upgrades the skills of existing employees. The Incumbent Program can reimburse employers up to a maximum of 50% of allowable training costs.

    Eligible Costs for Reimbursement:

  • Course design and development.
  • Instruction costs for job-specific training.
  • Training materials and supplies.
  • Training facility rental.
  • Travel costs (subject to limitations).
  • Eligible Costs for Match Only:

  • Equipment and machinery, pro-rated value used toward training.
  • Employer training space, pro-rated.
  • Trainee wages, excluding fringe benefits paid by a small or rural business during training.
  • Related training that is not job specific including time, stress, or life management training classes.
  • Ineligible Costs:

  • Trainee wages for large employers
  • Fringe benefits/signing bonuses
  • Cost to complete application
  • Recruitment/relocation expenses
  • Training of employer officers or partners
  • Management fees
  • Food and beverage
  • Conferences, seminars or tradeshows
  • Drug and other testing associated with screening and pre-screening employees.
  • Once a job training grant is awarded, an employer can take up to two years to complete the approved training program.

    Contact:

    Cindy Grogan
    602-771-1221
    cindyg@azcommerce.com
    Or Justin John
    602-771-1130
    justinj@azcommerce.com
  • Additional Depreciation
  • Provides an additional depreciation schedule to encourage new capital investment by reducing personal property tax liability.  The additional depreciation schedule is applied to the first five years of the property assessment and accelerates depreciation by five percentage points per year for five years.  In year one, the additional rate is 30%; in year two – 46%; in year three –
    62%, and in year four –78%; in year five – 94% of the scheduled depreciated value.  After the fifth year, taxable value continues to be determined using Arizona Department of Revenue (ADOR) schedules. The additional depreciation schedule is based on ADOR replacement cost new less straight-line depreciation schedules. This program applies to class 1 (commercial and industrial) personal property and class 2 (agricultural) personal property.

  • Arizona Quality Jobs Program
  • This new program provides Arizona income tax credits for companies creating new jobs and investing in Arizona. The credit is valued at up to $9,000 over a 3-year period per each new employee and offers a 5-year carry forward provision for any unused tax credits.  Eligible companies must create a minimum of five new jobs and make a minimum capital investment of $1 million.  A qualified job is a new full-time, permanent position that pays at or above the median county wage and pays 65% of the employee’s health insurance costs.  The Quality Jobs Tax Credit Program is capped at 10,000 jobs being claimed each year by all participants; whereas a taxpayer is limited to a maximum of 400 new jobs per year.

    Contact:

    Michelle Vega
    602-771-1132
    michellev@azcommerce.com

    • Lease Excise Tax

    The Government Property Lease Excise Tax Program has been established by the State of Arizona and is available to businesses that lease parcels from the City rather than own them outright. All real property tax has been waived and replaced with an excise tax that is an established rate per square foot and based upon the type of use. The rate is reduced every ten years by 20% until it reaches the 51st year, when the tax drops to zero.

  • Sales Tax Exemption for Manufacturing

    Sales tax exemptions are available on: machinery or equipment used directly in manufacturing; machinery, equipment or transmission lines used directly in producing or transmitting electrical power, but not including distribution; and machinery or equipment used in research and development.
     
  • Renewable Energy Tax Credit

    Provides tax incentives to companies in the solar, wind, geothermal and other renewable energy industries who are expanding or locating in Arizona.  The program offers two benefits; up to a 10% refundable income tax credit and up to a 75% reduction on real and personal property taxes.

    Contact:

    Michelle Vega
    602-771-1132
    michellev@azcommerce.com
     

  • Commercial/Industrial Solar Energy Tax Credit

    Provides businesses that install a solar energy device at its Arizona facility a tax credit equal to 10% of the installed cost of the solar energy device not to exceed $25,000 in credits for one building in a single tax year and $50,000 total credits per business per tax year. Tax credits can be used to offset Arizona income tax liability and any unused credit amounts can be carried forward for a five-year period.

    Contact:

    Michelle Vega
    602-771-1132
    michellev@azcommerce.com

  • Healthy Forest Enterprise Incentives Program (HF)
  • Incentive program for certified businesses that are primarily engaged in harvesting, initial processing or transporting of qualifying forest products. The program offers the following incentives:

  • Transaction Privilege Tax Exemption (TPT Exemption) on:

  • Purchased qualifying equipment

  • Leased or rented qualifying equipment

  • Construction contracts

  • Use Fuel Tax Reduction - Use fuel tax is reduced from 26˘ to 13˘ per gallon for use class motor vehicles.

  • Use Tax Exemption - on qualifying equipment purchased out-of-state.

  • Property Tax Reduction - Both real and personal property can be reclassified from class one (25 percent assessment ratio) to Class six (5 percent assessment ratio) for a period of five years.

  • New Job Income Tax Credit - Arizona income tax credit earned over a three-year period for each net new job created, totaling up to $3,000 per employee.
     

  • Pollution Control Tax Credit
  • Provides a 10% income tax credit on the purchase price of real or personal property used to control or prevent pollution.

  • Research & Development Income Tax Credit

    From 2011 through 2017, tax credit will be equal to 24% of the first $2.5 million in qualifying expenses plus 15% of the qualifying expenses in excess of $2.5 million. For 2018 and thereafter, the tax credit rates will return to 20% of the first $2.5 million in qualifying expenses plus 11% of the qualifying expenses in excess of $2.5 million.

    A qualifying company may be eligible to claim a partial refund of its current year excess R&D credit. A company that is otherwise qualified for the R&D tax credit who employs less than 150 full-time employees can apply for a partial refund of up to 75% of the excess credit amount.

    An additional credit amount is allowed if the taxpayer made basic research payments during the tax year to an Arizona state university. Beginning in 2011, the additional credit amount is equal to 10% of the basic research payments that constitute excess expenses for the tax year over the base amount.
  • Local

    A wide variety of local incentives may be available to relocating or expanding companies in Show Low depending on the number and quality of jobs created; amount of capital investment made in the community; and the economic impact of the project on the community.  Available incentives may include the following:

  • Tax rebates
  • Tax abatement
  • Infrastructure improvements
  • Fast-track permitting
  • Job training assistance
  • Employee recruitment assistance
  • Other

  • Energy Efficient Features Installation
  • Arizona Public Service Company (APS) has $10 million in incentives available for installing energy efficient features in public agency buildings, K-12 schools, commercial and industrial facilities.
     

     

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