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
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.
SBA Hubzone Program for
State of Arizona
Arizona Job Training Program
Course design and development.
Instruction costs for job-specific training.
Training materials and supplies.
Training facility rental.
Travel costs (subject to limitations).
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:
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.
Eligible Costs for Match Only:
Trainee wages for large employers
Fringe benefits/signing bonuses
Cost to complete application
Training of employer officers or partners
Food and beverage
Conferences, seminars or tradeshows
Drug and other testing associated with screening and pre-screening
Once a job training grant is awarded, an employer can take up to two years
to complete the approved training program.
Arizona Quality Jobs Program
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.
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.
Sales Tax Exemption for Manufacturing
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 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.
Michelle VegaCommercial/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.
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
Use Fuel Tax Reduction -
Use fuel tax is reduced from 26˘ to 13˘ per gallon for use class motor
Use Tax Exemption - on qualifying equipment
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
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
Research & Development Income Tax Credit
Provides a 10% income tax credit on the purchase price of real or
personal property used to control or prevent pollution.
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
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:
Job training assistance
Employee recruitment assistance
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.