Article
Arizona tax credits and incentives to help cash flow for your business
Aug. 1, 2023 · Authored by Gina Kucera, Gabriel Sermeno, Evan Krueger
In an effort to continue economic growth, Arizona administers several incentive programs that could apply to both local businesses and out-of-state expansions into the state. Below is an overview of Arizona’s five most widely used incentive programs.
Quality jobs tax credit (QJTC)
The QJTC is a nonrefundable tax credit created to encourage business investment and the creation of high-quality employment opportunities in Arizona. This credit can be used to offset a company’s income or premium tax liability, with excess credits carried forward for up to five consecutive years.
Potential benefit
The QJTC offers up to $9,000 of credit per net new job. The credit for each net new job is claimed over a three-year period in annual installments of $3,000 for an eligible business.
Eligibility requirements
Companies making the minimum investment in Arizona and creating the minimum number of net new qualifying jobs can apply. Eligibility qualifications are different for rural and urban areas as described below.
How to apply for program benefits
Companies creating net new jobs and making a capital investment at a business location can qualify for the QJTC.
Preapproval
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The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.